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Car Finance Expert Q&A

Hi, I'm Edwin and I'm here to help you!
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Edwin Miles. Underwriting Manager

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Can being a guarantor affect your credit rating?

Dear Edwin, I stood as a guarantor for my boyfriend 4 years ago. To be honest i didn't really understand what the implications were.

He has paid back £4000, no longer has the car but they are still chasing him for the remaining £2660.00 which according to him he is paying £150. per month. They have not sent me a letter asking me my income and expenditure and are saying that their clients have instructed them to collect the balance from me.

I don't drive & have never had anything to do with this car and certainly don't wan to be involved. What can i do if anything and will my credit have been affected because of these missed payments although he is stating he is still paying them on a monthly agreement? I'm hoping to get a mortgage soon will this affect me :( thanks Sharon.

Posted by Sharon on


Hi Sharon, I'm afraid there's not a great deal you can do if you have signed as a guarantor on a credit agreement.

It does seem strange that the finance company would come after you if your (ex)boyfriend says he's paying for the car still. You may need to confirm this with the finance company first.

If he has stopped paying for the car or has missed payments it may well have effected your credit rating already. I'd advise you to get a credit report done (Free with CreditExpert) and see what the damage is.

In short, acting as a guarantor can effect your credit history so there are real dangers if the main hirer doesn't pay. I'm sorry to break the bad news and I hope you get it all sorted out. Kind Regards, Edwin

Posted by on

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Hello, My daughter is buying a car through PCP finance however, because she is just 18 and has no credit history I gave been asked to be guarantor.

Will this effect my credit rating? The car company is saying it won't as all they need to know is how long I have worked with my current employer and what I do and how long i have lived at my address and my yearly income? Thanks

Posted by Lorraine Baker on


Hi Lorraine, thank you for your question.

If they are asking you to be a guarantor they will have to carry out a credit search which does slightly effect your credit score but this is completely normal and nothing you need to be concerned about.

The only concern is that all monthly payments are kept up to date as if they aren't this will effect your credit history. As long as all payments are made on time though you have nothing to worry about. Kind Regards, Edwin

Posted by on


I acted as a guarantor for my daughter when she needed a new car and, despite assurances from the dealership to the contrary, I now seem to have a new debt appearing on my credit record.
I will be looking to finance a new car myself in the next few months and this will seriously affect my ability to take on a new loan.
Why is this appearing and how can I get it removed?

Posted by Andy Turp on


Dear Andy, thank you for your question

When you sign to be a guarantor, in most cases this should not show up on your credit report. If the loan defaults however, these will show up on your credit record. As you have signed the guarantor agreement there is not much you can do to remove these defaults I'm afraid.

The good news is we may still be able to help! We have a large panel of lenders offering competitive rates, many of which can help people with defaults on their record.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Edwin

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Posted by Chantelle t on

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