A guarantor loan is an unsecured personal loan where you need a trustworthy and reliable person (normally from your friends or family) to co-sign the loan application. That means the guarantor has to repay the loan if you fail to repay it over the course of time. When you borrow a guarantor loan in the UK, it also becomes the financial liability of the co-signor to repay the loan if you fail to keep up with the repayments.
If you do not have a good credit score or you do not have any credit history yet, then a guarantor loan can help you build it from scratch. The rates of interest depend upon various factors and will vary from lender to lender. Ensure to make all the repayments on time and in full to boost or build your credit score. The person you want to nominate as your guarantor must have a good credit score and a stable source of income with an active and valid bank account.