It's certainly the case that some people might argue the main benefit of loans with a guarantor is that one's former financial history is rendered totally immaterial. All prior missed payments, defaults and arrears no longer matter in the least. Provided that a guarantor with a good credit history is found then you have access to credit once more, where you had no credit before.
With loans with a guarantor you can get credit again even with bad credit with things like defaults, arrears and CCJs. It's a much more flexible approach to finance and will once again let a section of society access to credit which would not otherwise have been there.
In order to take out loans with a guarantor you can be a homeowner or council or private tenant. The application process is completely confidential and so nobody need know about the matter. You can be a state pensioner or in receipt of benefits.