Guarantor Loans are a fantastic way to borrow money, at a reasonable rate, even if you have had credit problems in the past.
Rates from 29.9% to 59.9%
Same day payouts available
Tenant Guarantors accepted
UK based loan experts
High chance of approval
No fees or charges, ever!
Apply now and get your Guarantor Loan quickly and simply. By applying through Guarantor Loan Lenders you can compare every lender with only one simple application.
Sorry it has been so long since an update. I have been very busy with life! Very glad to see this page is getting a lot of traffic from people looking for information about Guarantor Loans. Just a warning a couple of bits of info on this site are slightly outdated (for instance FLM Loans recently rebranded to Amigo Loans... don't ask me why...). Anyway, here are some tips to help you out when applying for a guarantor loan.
1. Make Sure You Can Afford It
No loan company will responsibly offer you a loan if you have no way of paying it back. Make sure both you can your guarantor do have the means to make the monthly repayments. It's all good and well thinking as a guarantor you may never have to make the payment but the reality of the situation is that you may have to and you must be able to afford it (it is an obligation after all). Of course there is no way of knowing if down the line you may lose your job or what have you, just make sure you have a backup plan in case just in case it does all hit the fan.
2. Only Borrow What You Need
When taking out a loan it can be easy to think "Well... I'll just take out an extra £1000 so I can go on that holiday/buy that TV/but that laptop". STOP! THINK! Is it really worth it? Generally you are going to a guarantor loan lender because you don't have perfect credit. It is likely that it is that kind of thinking that got you into this problem in the first place. Borrow what you need. No more. No less. Then pay it back. If you want something else you may just have to wait.
3. Never Use Credit Cards/Payday Loans/etc to Make Your Payments
Now don't get me wrong, a consolidation of all your debt can be a really good idea. It is very important not to get into a habit of using short term loans and finance to make your monthly payments. Sure it may get one company off your back but it is very likely another one will come back and bite you a month or 2 down the line. If you are struggling, speak to the company. If they are decent (Guarantor Loans Online for example are very into their morals and ethics) they will always look for a way to help you out of a sticky situation. At the end of the day it is in both of your best interests.
4. Choose the Right Guarantor
Make sure you choose a guarantor that understands the risks and is willing to take it on the chin for you if need be. I'm not one to judge but is your girlfriends father really going to be a big fan of you if they get landed with a £1000 debt they need to pay off? Judge this for yourself though, don't let a guarantor loan ruin your friendships with people close to you!
That's all for now folks! I hope you take these points into account as they can mean the difference between a smooth and a very bumpy ride when it comes to finance. Some of these points could definitely be passed on to any type of loan/finance/credit/whatever you want to call it.
Until next time thank you all so much for the support and I will be dishing out more information as the days roll on.
While Guarantor Loans are a great product for those able to find a friend or family member to help them out some people are stuck in a situation where perhap no one they know owns a property, or those who do are unwilling to help (it is important to remember the risks in being a guarantor). Luckily for this kind of situation there are alternatives to Guarantor Loans on the market. Today I am going to take you through some of them.
Logbook loans are loans secured against your car. This means you need a car to take one out. The APR for this type of loans seems to be around the 400 to 500% mark. While this may seem high it is still a lot cheaper than a payday loan and can help if you are looking for a bit more cash than may be on offer without putting your car up as security.
Payday loans are small, short term loans designed to get you to your next payday. There is a lot of contreversy surrounding payday loans but when used properly they can be very helpful (and even save you money). One of the most popular payday lenders is Wonga (if you listen to the radio I am sure you will have heard there adverts from time to time) and they offer a representative APR of 4214%. There has been a lot of negative press about Payday Loans over the last couple of years. They were looked into by the governing bodies and found not to be using unfair practice, however these same governing bodies are now being replaced as they have been unable to keep a hold on the finance industry. If you need a small amount of money, maybe £100, then I would recommend them. You will end up paying around £125 back on your payday but this could save you from bank charges, defaults or CCJs. It is only when you start borrowing larger amount and not repaying them in full that these loans can become a huge problem.
Doorstep loans are unsecured loans. The lender gets security because they have agent that will come to your house on a weekly basis to collect your payment. For them this a much more affective way of getting paid back and allows them to be very leniant with their lending criteria. These loans are only available in certain areas where the lender has agents to collect your money. If you are looking for some short term cash and do not want to go down the payday route I would highly recommend this type of loan as the APR 272%, which means it is the lowest of all the alternatives to Guarantor Loans.
I hope this has been a helpful guide to alternative loan types. As always be sure to thing carefully before taking out a loan. Until next time.
Guarantor loans offer a great way for people with bad credit to take out finance. Most lenders offer between £1000 and £5000 however there is a couple of lenders that will offer under £1000. The best thing about these loans is unlike other unsecured lenders they are available to anyone; whether you are a homeowner, a tenant or even living at home with your parents! This is great news for people that have been asked for some kind of security (often a car or a house) in the past but have nothing available.
Guarantor lenders are a new breed of lender, they are trying to break out of the niche other more mainstream lenders sit in and create their own rules. This is very healthy for the financial industry as it shows that things don't have to be done the same old tired ways they have been for as long as anyone can remember.
In the past loan companies would not touch you with a barge pole if you had lived at more than 3 properties in the last three years. Well, things have changed a lot in todays society which makes things like this very likely. The idea of owning your own home does not appeal to as many people as it did 10-20 years ago. A lot of people live very active and varied lives, and it is not uncommon for that to involve living in numerous properties, with friends, with relatives and on camp sites.
As guarantor loans push the boundaries of what is available to consumers it is refreshing to see more and more companies enter the market. There is no set criteria, apart from having someone to back up your application. The reason for this is that the lender has no other security. You may have a bad credit history. Maybe you never paid back your last loan, maybe you always make late payments. These lenders are willing to give you another chance as long as someone you know is willing to show they trust you and will support you.
Some people do not like the idea of having a guarantor, but the truth is a large majority of lenders on the market 10 years ago no longer exist. This is because they gave money to anyone and everyone, bad credit or good credit. Unfortunately a lot of people did not pay them back. For new loan companies to emerge and be successful (and inevitably be able to continue lending) they need more than just a signature to say that the borrower will pay them back.
Your Guarantor can be a friend or family member who either owns their own property, or is a tenant. They must trust you to make the repayments and be willing to step in if you are unable to.
They can be aged between 21 - 75.
Homeowner or Tenant.
Must be able to afford the repayments.
A guarantor loan is an unsecured loan, designed for those unable to obtain credit via more traditional methods and who are looking for a longer term alternative to a payday loan. With the support of a friend or family member any financial situation can be considered.
If you have previous bad credit we can still look at your application. With the help of a guarantor we can consider anyone for a guarantor loan, as long as you are not in an IVA, bankrupt or in debt management.
Having the odd missed payment on your credit file can make it tough to get finance at reasonable rates. The support of a guarantor means that we are able to offer up to £5,000 to those with a less than perfect credit history at a fraction of the rates of payday loans and some alternative unsecured loan products.
Once you have completed your application we will do our best to get the loan paid out to you the same day. Before we finalise your loan we will talk with you and your guarantor to make sure you are both happy to proceed. Once the loan has been completed we will pay the loan into your guarantor's bank account via 'faster payment'.
We realise that a number of companies charge various fees throughout the application process. We think this is unfair. That's why we don't charge a fee at any stage of the application process. We also choose not to affiliate ourselves with fee charging brokers.
A Guarantor Loan is an unsecured loan product which consists of 2 parties. The Borrower, and the Guarantor.
For the Borrower, the Lender will mainly look at the suitability of the loan from an affordability point of view. Using the Guarantor as a reference of sorts, similar to when you rent your first property, or when you apply for a job. However, unlike a job reference, the Guarantor for a loan does have certain responsibilities. Mainly ensuring the loan repayments are up to date if the Borrower fails to.
As you may be able to tell, these products are designed mainly for those with a bad to fair credit history. Perhaps recently missing some payments, or even having Defaults or County Court Judgments on record. Although it is worth noting lenders usually draw the line at current insolvency (IVA or Bankrupt), and can be quite particular in regards to Debt Management Plans as well.
Depending on the Borrower's, and Guarantor's, situation, loans are generally offered from £500 up to a maximum of £15,000 over a term of 12 to 60 months. With most lenders additional repayments and early settlements can be made without any additional charges, although some can charge up to an extra 2 months worth of interest if you want to pay off early.
Over the last 5 years Guarantor Loans have become more and more popular, with lending at least doubling over this time. While there was initially only one lender on the market offering this product (FLM Loans - Now Amigo Loans), their are now at least 10 actively lending, with more looking to enter the market in 2017.
One of the main reasons for the popularity of Guarantor Loans is that a more traditional personal loan is now harder to obtain than ever, with even the tiniest blemish on a credit history leading to the formidable "Computer Says No". This is true with banks, building societies and even the more modern peer-to-peer lenders.
A lot of the younger generation grew up with readily available credit, especially through payday lenders such as Wonga. So borrowing, not saving, to spend is quite heavily engrained in modern culture. Ensuring that all types of lending are not going anywhere soon.
Are you looking to get your loan quickly? We have got loans paid out in under an hour before!
We work with multiple lenders that can get you the money you need in under 24 hours. In order to get things wrapped up quickly and easily, we will need to speak to you and your Guarantor as soon as possible after you have made your application. After this, in some cases we will ask you and your Guarantor to provide some additional documentation - often proof of identification, address or income would be needed in this situation - before we request these documents we will try our best to confirm everything electronically, so get yourself on that electoral register!
If speed is key then you may want to make sure you have some additional documents available before applying. That means that if the electronic checks fail you will have everything to hand you need.
You may need:
A recent Payslip;
30 days of bank statement;
3 months bank statement if you are self-employed;
A Passport or Driving Licence;
Proof of Tenancy;
A recent Utility Bill.
If you can't get hold of the above, it's worth discussing this early on with one of our Loan Experts early on in your application. We will then be able to let you know how to proceed.
A number of Guarantor Loan Lenders on the market will not accept Tenant Guarantors, luckily we work with a lot that do. Whather your prospective Guarantor owns a property, lives with a partner, rents privately, rents through the council, or even lives at home with their parents we have Lenders that can help!
If your Guarantor is a Tenant, the maximum loan amount you can borrow is £8,000, however you can still stretch this over as many as 60 months. If you are a Tenant the maximum we can offer you is up to £10,000, and if both you and your Guarantor are Homeowners we can get you up to £15,000.
If you have a good credit history you may be able to get a better deal by taking out a more traditional, personal loan. The best pace to start could be your Bank, or one of the new Peer-to-peer lenders such as Zopa or Ratesetter. This will ensure you get a more competitive interest rate compared to
Applying direct to lender has grown in popularity over the last 5 years or so, and with good reason. With old fashioned brokers charging fees left right and centre, they made the idea of applying for a loan through a broker extremely risky.
"Am I going to get a loan, or just charged £50 for nothing?!"
Plus, in some senses lenders prefer customers applying direct, it means they have less competition. Got the biggest budget? Then you write the most loans. Applying direct to a lender means the lender can compete less on product benefits, and if they don't lend, the customer is left high and dry.
That's where we, Guarantor Loan Lenders, comes in. We offer the best of both worlds for the customer. We charge absolutely no fees at all, you pay exactly the same as you would direct, and we have access to a large panel of different lenders, ensuring each customer ends up with the most suitable product for them. Never leaving you high and dry.