Frequently Asked Questions
What is a Guarantor?
A guarantor is a friend or family member who is prepared to guarantee your loan and will be expected to make repayments in the event that you are not able for any reason. They will usually need:
- To be at least 18 years of age but under 75
- To be a UK resident, either a homeowner or a tenant
- Have a good credit rating
- Not be financially dependent on the applicant
The guarantor will be expected to complete details on your application and will therefore need to understand the role that they are agreeing to take on.
How quickly will I have access to my money?
Very low value loans (up to £500) can often be paid within an hour of your application being approved. Larger loans will usually take around 24 hours.
I feel uncomfortable asking my friend to be a guarantor. What do you recommend?
While we can’t tell you what to say we would advise you to think very carefully about who you ask and why you need a loan. A friend or family member will be much more willing to help if you are borrowing money for the ‘right’ reasons. If you can show them that the money is important we are sure they will be more willing to help.
It is also wise to be able to demonstrate that you are able to afford the repayments and that you will be able to pay off the loan in the agreed time. If you are not certain you can do this you are risking your friendship.
I’ve been refused a loan in the past, are you sure you can help?
While we cannot make any guarantees as to whether your application will be successful or not we can assure you that our lenders specialise in offering loans to people who have a poor credit history who may not be suitable for traditional lending.
They are able to do this because they use the credit history of your guarantor rather than your own so as long as they have a good rating your loan should be approved.
Notable exceptions to this would be if:
- You have been declared bankrupt
- You are subject to an IVA or Deed Trust
Wouldn’t it be easier just to get a payday loan?
No! We would never advise anyone to take out a payday loan. They are unbelievably expensive (up to 5000% APR) and you can find yourself in a debt spiral caused by a relatively small loan that gets blown out of all proportion.
Our loans are sensible and affordable. The rate is based on what you borrow and the length of time you would like the loan. This is usually around 49% for a loan of more than £750.
If your loan is below £750 the rate is significantly higher but there are restrictions on the loan term so you will not find yourself with unrealistic repayments.
Is there an arrangement fee to pay?
No, applying for a loan is free and there is no obligation to accept any of the offers you receive.
There are also no early repayment fees so if you find yourself able to clear either part of the loan or repay in full you can do so with no penalties.
We take our fees from the lenders so there are no cost implications applying for the loan through us rather than if you were to go to the companies direct. All we do is save you making multiple applications!
What can I use the money for?
Although on our application form we ask what the loan will be used for there are no restrictions. However, we would advise you to think carefully about whether the money is needed for important reasons. Generally these might be:
- A short term solution to unexpected circumstances, usually to last until next payday.
- Car repairs or home maintenance.
- Debt consolidation.
We would urge you to remember that you are asking a big favour of your friend or family member to back your loan so you will need to demonstrate to them how seriously you have taken this decision.
What happens if I cannot keep up the repayments?
In most situations your lender will work with you to come to an arrangement that means you can keep up with your repayments. It is therefore extremely important that you advise them of any changes in your circumstances that might affect your financial stability.
If you are unable to make the payments your guarantor will be expected to on your behalf and you should tell them this as soon as you are able and particularly before your lender does. Most people would be sympathetic to your circumstances if you are honest with them.