Representative 49.9% APR (variable). Borrowing £4000 over 36 months, repaying £195.16 per month, total repayable £7,025.76. Interest rate 49.9% (variable).
We work with a panel of lenders
Please be aware that by applying you give your consent to have your personal information passed to a third party to process your application. Some lenders may need to conduct a credit search as a result of you application.
If you have a poor credit history Money Solutions UK could help you find a lender that would accept an application with either a Guarantor or help find a bad credit Loan.
When applying for a loan with a guarantor you need to have someone who is happy with your credit worthiness and is willing to back your loan. You could ask your family, friends or co-workers to stand guarantor on your loan so long as they are financially stable.
The guarantor will need to be between 18 and 75 a homeowner with a UK bank account and steady income. If a guarantor backs your loan then our lenders trust you and therefore your credit rating is not so important.
With Money Solutions UK you can quickly and efficiently apply for a Guarantor Loan using our online service. So if you are wondering how can I get a loan with bad credit then this is certainly an option to consider.
Guarantor loans are one possible solution for customers who have never had credit in the past or have to face the question "how do I get a loan with bad credit?.
A Guarantor loan is an unsecured loan that require a second person to act as a guarantor. You can usually borrow between £500 and £7500 over terms of between one to five years. These types of loans are not to be confused with payday loans as the interest is much lower and the initial term longer.
There are a great many loans with bad credit tolerence available in the Uk, but the guarantor loan enables customers who have a good character and willingness to pay the opportunity to raise a loan should they need one.
It could be seen as an irony that consumers in the uk who require credit the most are the least likely to get it. If consumers with impaired credit are offered a facility, they will more than likely be charged a higher rate of interest. Loans with a guarantor will attract a higher rate of interest than the big banks but in contrast there is much more flexibility in the underwriting criteria for these loans and the customers that qualify for them.
Customers who have a lower credit score for whatever the reason tend to find it harder to get a loan from the main high street banks and finance houses. These lenders tend to favour those with the highest credit rating and reject a high percentage of loan applications. It is these customers that may suit a guarantor loan.
The lender is able to protect themselves by allowing a guarantor to cosign the agreement so that if you, the applicant fails to pay your loan back to the lender they’ll be able to pursue your guarantor also for payment. In this respect the lender is practically offering a guaranteed loan, in effect overlooking most types of bad credit on your file.
By offering loans with a guarantor it allows the lender to lend money to those who normally wouldn't qualify for such services.
If you don't have a guarantor for your loan and are happy to be credit checked then you may still still qualify for one of our standard personal loans.
A loan with a guarantor is most likely not for customers who have a poor track record with credit if they have no genuine intent to improve their situation. This type of loan will only be helpful to a customer who can find someone who is deemed a secure and responsible individual to stand guarantor to the loan. The guarantor for the loan is ultimately responsible for the payments should the applicant default, this is the lenders security.
So if you think you can meet the criteria and have a guarantor to help you then you can apply for your guarantor loan today
Almost anyone can act as your guarantor, as long as they are not financially linked to you (i.e. spouse). The most common guarantors tend to be family members, friends or work colleague. The guarantor will need to meet certain criteria have a clean credit profile themselves.
The loan guarantor will naturally want to be confident that the applicant was going to make payments on the loan. To prevent fraud the guarantor loan lender will send the proceeds of the loan to the guarantor to pass on to the applicant. This final stage in the process ensures that they are fully aware of their commitment and also verifies their relationship with the applicant.
If you are looking to borrow less than £500 then the guarantor does not need to be a home owner so long as they have clean credit and proof of income.
If you genuinely can not find anyone to stand guarantor then try one of our standard personal loan providers who may well be able to help you source a loan.
Before agreeing to sign, your guarantor should assess the main borrower's credit, income and expenses to determine whether he or she is capable of paying back the loan. The loan guarantor must be prepared to repay the entire amount if necessary and should not agree to guarantee a loan if he or she is financially unable to do so.
A Guarantor will need to meet fairly basic criteria to qualify, the key one being that they must be a homeowner. Home ownership is considered a key factor when assessing the credit worthiness of the guarantor and the application as a whole and at this point in time is a mandatory requirement.
If you are intending to borrow less than £500 then your guarantor does not need to be a home owner so long as they have clean credit and proof of income.
The loan guarantor must also have a stable credit history and steady income from employment or perhaps pensions.
The most common people that our customers choose to act as guarantors tend to be parents, family members, close friends or work collegues. You may also consider an employers or even landlord
Put simply if they trust you then our lenders trust you and thus your personal credit rating is not so important when applying for a loan with a guarantor.
Any individual considering whether to become a guarantor should obtain a copy of the loan contract and should be sure to read and fully understand it before signing it
Many lenders in the Uk are targeting asset backed finance to give themselves greater comfort and security in the current economic climate. There has been a noticeable move away from unsecured lending with many mainstream lenders and banks withdrawing their products or simply making their qualifying criteria more rigid as a means of reducing their exposure. Lenders in the secured sector by contrast are increasing their lending whether secured on property or personal possessions.
Guarantor loans could be viewed in a similar vein. If a customer cannot get a loan from his or her bank or doesn't meet the criteria of one of the other large financial institutions in the Uk it doesn't always follow that they have a poor track record of paying back a loan.
Customers often ask "How can I get a loan with no credit history? If a customer hasn't had credit before they may be declined, if they have changed jobs or moved recently they may also be declined by the big banks. This is where the guarantor loan lenders perhaps come in because the guarantor provides that additional security.
What can I use more guarantor loan for?
You can use it for any legal purpose whether for personal of business use.
Is this loan guaranteed?
Though this is not a 100% guaranteed loan you will need to meet only very basic criteria as it is scored on your guarantor more than you.
Do I have to apply with my spouse or partner?
Am I credit checked?
Only to ensure you are not bankrupt or in an IVA.
Are there any fees charged to apply for a guarantor loan?
We charge no up front fees to customers for sourcing a loan through us
Is a loan with a guarantor just for people with bad credit?
Not necessarily no , you could be in temporary employment or difficult to find on the voters roll. There are many reasons why it's difficult to get credit
Can I pay my guarantor loan off early?
Yes and with no extra charge.
How do I manage my guarantor loan?
You will have an online login to manage your account, make extra payments and apply for a top up.
Money Solutions Uk have access via a panel of lenders and master brokers to many loan providers who will conduct a credit check before offering personal loans to customers who meet fairly basic criteria. This can mean tolerence for some bad credit and stable income.
We also have some personal loan lenders who offer market leading rates to customers who pass a more rigid credit check.
If you are a homeowner and looking for a larger amount then you may wish to consider homeowner loans.