Guarantor Loan Lenders

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 Just a warning a couple of bits of info on this site are slightly outdated (for instance FLM Loans recently rebranded to Amigo Loans...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

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 Loan

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

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.

When looking for a guarantor loan it is hard to know where to start. There are 4 main guarantor companies on the market currently that are actively lending themselves (feel free to let me know if I have forgotten you). Let’s take a look at them briefly so you can familiarise yourself with the big players in the market.

Guarantor Loans Online (or UK Credit)
After starting up in early 2010 these guys have been consistently offering a professional and friendly service. They do have a strict criteria for there main applicants (mainly regarding IVAs and debt management), but are more lenient on guarantors compared to the alternatives. You can also chat to them online and ask any questions which is a big plus. It’s actually the same people that man the phones who will speak to you online so are specialised in the field and know the ins and outs of all their products. They also have a great morality and have been very transparent in all communications (very important for a loan company I’m sure you will agree). I almost forgot to add they are the only loan company offering fixed interest rates, so you know your rate will not change throughout your loan term.

FLM Loans (not to be confused with FML)
The original guarantor loan lender. They brought guarantor loans to the mainstream back in 2007 and have been going strong ever since. They do ask for a lot of commitment upfront and unlike some other companies will take your guarantors bank details. Although it must be noted they do offer the most competitive interest rates of the lot, even though they recently went up! Another good thing is they will accept basically any applicant, however they only accept 100% clean guarantors.

Blackheath Loans
A relatively unknown company from what I have seen. Unfortunately I haven’t heard many good things about these guys, just check out the review websites. One main thing I didn’t like was that they would not give me any details up front without making an application. Of course they do have one main advantage, small guarantor loans. While the other lenders generally offer a minimum loan amount of £1000 Blackheath will actually look at any amount you request, so they definitely are flexible. I do think that this is perhaps why they could not really give me any information without submitting all my details.

Any Type Of Loan
Starting off as a broker for The Finance Store (who I believe only really offer loans through them currently) Any Type Of Loan have come on leaps and bounds; now having their own lending arm. They claim to work with two other lenders on top of their own which means applying through them you do have a good chance of being accepted. One thing to note is because they broker a lot of loan deals you do get stung with a broker fee (up to around £1000 per loan).

So there is a lot of choice in today’s guarantor loan market, and when looking for a guarantor you could do much worse than applying with any of the above companies. None of the above will ask for an upfront free which is a huge bonus. Avoid general loan brokers at all cost because you may end up being ripped off (I’m looking at you Yes Loans...).

Until next time...

Over the last month or so one of the largest guarantor loan brokers on the market today has launched there very own brand new guarantor loan lender! While at first I thought this may mean they will focus all of their energy on this new lender, they seem to be keeping it very seperate from their current brokerage; it must be doing well. The reason for this, it would be easy to assume, is to keep their relationship with their previous lender of choice (The Finance Store) sweet. I imagine they will start off slow, still putting a large amount of applications over to The Finance Store, maybe with the idea of testing the market and seeing how profitable funding the lending themselves turns out to be.

This is great news for customers! It is unfortunate that Any Type of Loans ,in the past, have charged a HUGE broker fee of around £1000 per loan, just for the privilege of them passing your data on to a lender! Which means when you previously went through Any Type Of Loans to get a loan through The Finance Store, you ended up paying an additional £1000 back along with the accrued interest on top (shocking I know)! It seems to have worked for them so far, why they are changing now is questionable, perhaps The Finance Store is running low on funding?

Good news though, hopefully in the future, if you decide to go through Any Type of Loan, you will be getting a much sweeter deal (£1000 sweeter to be precise). Sadly I am yet to speak to them about how the new lending arm works, as usual It will be much easier to gather information a bit further down the line when they have lent a bit of money out. A lot of the time sales teams are kept quite separate from the goings on behind the scenes and are unable to provide all the necessary information.

Along with the new lending arm, I have read a recent article in which they claim they now deal with 3 different lenders, I am currently starting to gather the full information on this however if there is yet ANOTHER guarantor lender emerging it will mean yet more choice for borrowers looking for the best deal on a guarantor loan. While I have my preferences, and will probably write up some blog posts as to why I think some lenders are better than others, I like to remain impartial and will always advise people to do the research themselves. At the end of the day what’s best for me isn’t always best for you.

Anyway, I’m rambling, So until next time good luck finding the best loan deals out there and if anyone wants any specific questions answered feel free to drop me an email.

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.