Having a few red spots on your credit report can be worrisome when you apply for loan. Lenders are not really willing to offer anyone financial aid who doesn’t have a proper credit history or has a negative credit file. And while it becomes difficult to manage big purchases — such as investing in a property or buying a car —with your current earnings, borrowing cash could become even more challenging.

Guarantor loans can rescue you in such situations. The guarantor voluntarily becomes the security against the money you pay and act as a backup. He or she takes full responsibility of repaying the loan amount in case the borrower cannot. Since the security is in the form of guarantor, lenders feel less risk-averse in approving the application.

A number of companies throughout the UK offer guarantor loans. Some of the best and most reliable ones are listed below:

UK Credit

The company offers fast online approval and loan service and therefore is one of the most popular lenders in the UK. They do not charge any upfront fees and do not consider borrower’s credit history for loan approval. The guarantor loan amount fall between £1,000 and £10,000 with representative APR set to 37.9%. This is a fixed amount that is charged over the loan term, which can be up to 5 years.

Amigo Loans

Another reliable name in the industry, Amigo Loans offer one of the fastest service, which allows you to borrow between £500 and £7500 in less than 24 hours. There are no hidden or upfront fees associated with the loan.

Amigo Loans is proud to be associated with more than 190,000 customers already approved. They even claim to help one customer with guarantor loan every 10 minutes. Another reason people opt for Amigo Loans in the UK is because they accept both tenants and homeowners as guarantors.

The representative APR is 49.9% variable with loan term up to 5 years.

Guarantor My Loan

Quick and easy cash in hand, Guarantor My Loan is an online lender extremely popular and reliable for its customers. With Guarantor My Loan, you can borrow up to £5000 for up to 5 years term. They take the responsibility of helping you with your poor credit report as well. However, in order to acquire a loan, the guarantor must be a homeowner and over 21 years.

There are no hidden feesapplicable on the loan. The representative APR is 48.9%. Since the lenders offer only fixed rates, the payments will not change over the term. However, you can pay back in a weekly form or fortnightly – as you are comfortable.

Applying for this loan is easy. All you need to do is fill up an online form with your details and personal details of the guarantor. This is a great way to receive immediate cash without trouble.

You may find many online lenders offering guarantor loan but at the end some of them may turn out to be just brokers. This could elongate the cycle and make it more frustrating. To avoid this, make sure you are dealing with real lenders only. Investigate and do your homework before proceeding.