With a guarantor for a loan people may access credit again even if you have a bad credit history featuring things like CCJs, arrears and defaults. It is a liberated approach to finance and will once more allow a significant section of people access to lines of credit which would not otherwise have been the case.
The concept of a guarantor for a loan came about as a result of fallout from the credit upheaval recently. Lending practices had to change to allow folk with bad credit ratings to be able to access new lines of credit. The answer was the guarantor loan which has proved itself very popular.
Some people may say the main advantage of a guarantor for a loan is that your prior credit record is made totally irrelevant. Every one of one's past arrears, defaults and missed payments no longer matter in the least. As long as a guarantor with an average credit record can be put forward then you can obtain money again, when you could not before.