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.
This page focuses specifically on borrowing without a guarantor. If your main concern is your credit history rather than whether a guarantor is needed, read our main guide to bad credit loans.
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, creditworthiness and whether borrowing appears suitable before making any 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.
No Guarantor as Part of Bad Credit Borrowing
Borrowing without a guarantor is one feature of how bad credit loans are structured — not a separate approval pathway.
Understanding how guarantors fit into the broader assessment process can help borrowers make informed decisions.
For a full explanation of how Cashfloat assesses bad credit applications — including eligibility checks, affordability reviews, and borrower protections — see our main guide below.
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.