Applying for a personal loan with a guarantor means you'll be submitting your application with a third-party individual in a relatively strong financial position, usually a parent or close relation, who essentially agrees to pay off your loan if you become unable to do so. Because of the fact that another layer of security is added to your loan, this is another way of expanding your borrowing power. These are typically more useful for bad credit customers but can also be utilised for younger borrowers with limited or no previous repayment experience. Speak to your lender about a guarantor if you’re looking to add one to your loan.