A typical guarantor is a friend, colleague, family member or spouse. You need someone who you can speak openly to about your finances and who is able to manage the repayments if you cannot afford them.
The guarantor is someone who understands that you have bad credit and wish to show that you can afford to repay a loan and improve your credit rating.
The best types of guarantors are those that are homeowner or car owners who have demonstrated a good credit history. The lender believes that if the guarantor has good credit and has agreed to cover the borrower’s repayment, they should be able to recover the money they lend. It is all based on trust: if the guarantor trusts you, the lender can too! But someone with a home or a car is less likely to leave the country if they are have assets in the UK. They are likely to be easily contactable if the borrower misses repayment.