If your main question is about borrowing with a poor credit history rather than whether a guarantor is required, read our bad credit loans guide.
What Is a Guarantor Loan?
A guarantor loan requires another person to agree to repay the debt if the borrower cannot. This can place financial and personal pressure on both parties.
Not all lenders use guarantors, and they are not a regulatory requirement for bad credit lending.
Why Cashfloat Does Not Use Guarantors
Cashfloat’s lending decisions are based on the borrower’s own financial position, not on someone else’s ability to repay.
Instead of relying on guarantors, we focus on:
- Whether repayments are affordable from your income
- Whether borrowing is likely to help rather than cause harm
- Your recent financial behaviour, not just past difficulties
This approach avoids transferring risk to friends or family and keeps responsibility with the borrower and the lender.
No Guarantor Does Not Mean No Checks
It’s important to understand what “no guarantor” does — and does not — mean.
Not requiring a guarantor does not mean:
- Automatic approval
- Fewer affordability checks
- Higher-risk lending
All applications are still assessed carefully to ensure repayments appear realistic and sustainable.
No Guarantor Does Not Mean Guaranteed Approval
A no-guarantor loan does not mean automatic approval. It also does not mean fewer checks. Cashfloat still assesses affordability and creditworthiness and whether borrowing appears suitable before making any decision. The good news is that even if you have bad credit, there are other things lenders look at besides your credit score to make a decision.
This is especially important for people with poor credit history. The lender must decide whether repayments are realistic without relying on another person to cover the loan.
How Applications Are Assessed Instead
When reviewing applications without a guarantor, Cashfloat looks at the wider picture, including:
- Current income and essential outgoings
- Recent account activity
- Stability indicators that suggest repayments can be maintained
This allows decisions to be made based on suitability rather than security provided by a third party.
Where a Guarantor Fits in Cashfloat’s Assessment
Not requiring a guarantor is part of how Cashfloat assesses an application. It does not create a separate approval route or reduce the affordability, creditworthiness or suitability checks required before a decision is made.
Understanding how guarantors fit into the broader assessment process can help borrowers make informed decisions.
For a fuller explanation of borrowing with a poor credit history, read Cashfloat’s bad credit loans guide.
Borrowing Carefully
Before applying for any loan, consider whether borrowing is the right option for your situation.
Cashfloat encourages borrowers to:
- Review repayment commitments carefully
- Consider alternatives where appropriate
- Seek independent advice if unsure
Free, impartial guidance is available from organisations such as MoneyHelper.
Regulatory Notice
Cashfloat Loans is a trading style of Western Circle Limited. Authorised and regulated by the Financial Conduct Authority. FCA full permission licence: 714479.