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Who can be a guarantor for car finance?

This insightful blog post demystifies the criteria and responsibilities involved in becoming a guarantor. Learn about who qualifies, the requirements they must meet, and the crucial role they play in financial agreements. A must-read for anyone considering taking on this significant responsibility.


Purchasing a car on finance can be an excellent way for individuals to spread the cost of a new or used vehicle over several months or years. If you’re considering car finance, you might come across a term: guarantor.

A guarantor acts as a backup payer if you default on your finance payments. But not just anyone can be a guarantor. Here’s a guide on who can act as one when it comes to car finance in the UK.

Understanding the role of a guarantor

Before diving into who can be a guarantor, it’s essential to understand their role fully. A guarantor is a third party who guarantees to cover the repayments on your car finance if you fail to make them. By having a guarantor, the finance company may feel more confident about lending to those with poor or limited credit histories.

Criteria for a guarantor

Different finance companies may have specific criteria, but there are general guidelines to follow. Here’s what is typically expected from a guarantor in car finance:

1. Age: Most companies will require guarantors to be over 21 years old, though some may have a higher age minimum, such as 25. They should not be too old either, as they need to be in a position to cover the loan during its entire term.

2. Good credit history: As they act as a backup payer, guarantors typically need a good credit history. It demonstrates their reliability in managing their finances and their ability to cover the repayments if required.

3. Stable income: It’s essential that the guarantor has a regular, stable income. This can come from employment, self-employment, or even pensions. The main point is they need to have the means to cover the loan payments.

4. UK resident: To guarantee a car finance agreement in the UK, the guarantor should be a resident of the UK. This is because it’s easier for finance companies to assess their creditworthiness and communicate with them if necessary.

5. Not financially linked to the applicant: It’s preferable for the guarantor to not be financially linked to the person taking out the loan. This is because if the applicant has poor financial habits, those might also impact the guarantor. However, this is not a strict rule and can vary between lenders.

Who can’t be a guarantor?

While there’s a list of who can be a guarantor, it’s equally important to understand who can’t. Here are a few common categories:

1. Individuals with poor credit history: Those with a history of missed payments, county court judgments (CCJs), or bankruptcies might not be accepted as guarantors.

2. Unemployed individuals: Without a stable income, it’s risky for finance companies to accept someone as a guarantor.

3. Temporary UK residents: Non-permanent residents or those on temporary visas might not be accepted due to the potential complications of pursuing payments if necessary.

Having a guarantor can make it easier for individuals with poor or limited credit histories to get car finance. However, being a guarantor is a significant responsibility, and not everyone will meet the criteria. It’s essential to have a transparent conversation with your potential guarantor about their role and responsibilities. If you’re unsure about any specific criteria or requirements, always refer directly to the finance company’s terms or seek professional advice.

🚗 Read more: How to find a guarantor for your finance.

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