If you currently have a loan with us and have been affected financially by the COVID-19 pandemic, please click here for ways in which we may be able to work with you during these difficult times.
For most people, a loan is a loan. But, actually most loans can be sorted into two categories; secured and unsecured. It is vital to know the difference between them before seeking and especially taking out a loan. TFS Loan’s Q&A is here to help.
Whilst having many similarities, secured and unsecured loans have one main difference. Secured loans are loans for homeowners, as the loan is secured against your property. Essentially you put your home up as collateral for a secured loan. Should you fail to make repayments on a secured loan, your home could be repossessed as the loan is taken out against your property, meaning that secured loans are usually for larger amounts of money.
However, unsecured loans are loans that are not secured against property and are generally for smaller amounts. Most unsecured loans will rely on your credit score as an indicator as to whether or not you will be accepted for a loan. So, for those with poor credit and no property in their name, obtaining a loan can be difficult.
Whilst most companies will rely on your credit score when lending unsecured loans, at TFS Loans, we operate in a different way. We offer unsecured loans if you have bad credit, in the form of a guarantor loan. This means that we ask you to provide a guarantor to support your application and have them agree to cover any payments on the loan, should you be unable to make them. As long as your guarantor has a good credit score, is a homeowner and can afford the loan repayments if you cannot, they can co-sign on your loan.
An unsecured bad credit loan is a loan that is not secured against your property and is a loan ideal for those with bad credit. TFS Loans offer unsecured bad credit loans, through the form of guarantor loans which, as mentioned before, only require you to provide a guarantor with your application. If you simply have poor credit due to past financial difficulties or have never built your credit profile, unsecured loans may be the ideal loan for you. Through a guarantor loan from TFS Loans, borrowers can rebuild their credit score by repaying their unsecured loan monthly.
For most loan applicants with poor credit and no property to put up as collateral against the loan, there may be no other way to secure a loan. A guarantor loan from TFS Loans is a smarter and more sensible way to obtain a loan, without incurring staggering APRs and upfront fees. At TFS Loans we spread the payments over a longer period, making monthly payments more affordable. You only need a guarantor who is a homeowner and can afford the repayments should you be unable to for any reason.
Our loans at TFS are personal loans, with APR fixed throughout the loan term. So, your repayable total amount never increases. Your monthly repayments stay the same throughout the loan duration. Our representative rate is 44.9% APR on our guarantor loans. Please note that representative APRs are only representative figures, interest rates vary due to loan amounts and loan term.
A personal loan from TFS Loans means you can use it for pretty much anything – as long as it is legal! ‘What can I use my Guarantor Loan for?’ click here to find out!
For more information on Guarantor Loans, visit our guarantor loan page.
Visit our FAQs pages for any questions you may have about Guarantor Loans.Get Answers
Nothing but friendly helpful service from start to finish with my loan application. Everything has been sorted within 24 hours with exceptional customer service provided! I will definitely recommend TFS to my friends.
15th February 2019
Fast process and the staff were wonderful. Great professional people, definitely recommend TFS. Thank you!
3rd July 2017
Excellent communication from well trained staff who explained everything from start to finish. I had the pleasure of dealing with Sally who was lovely. Well done!
16th June 2017
Great Service, kept me well informed every step of the way. Extremely efficient.
1st June 2017
A very efficient well mannered group. As a guarantor you answered all the questions I asked and time was of no problem - thank you for looking after my daughter.
28th February 2017
All customer service personnel were really polite and extremely helpful. I would definitely recommend the company to others. I would definitely use the service again if needed in the future.
10th October 2016
I would definitely recommend TFS loans and would use them myself again. Everything thoroughly explained in detail!
25th July 2017
I felt that the process from start to finish was smooth and quick. My application was dealt with, with ease and I look forward to being able to use this loan for a good cause
16th September 2017
Highly recommend TFS Loans very friendly and people person advisors. Very helpful very quick decisions I have had 2 loans with them now
1st October 2018
Very helpful friendly staff. Good rates. Would recommend TFS Loans .
Anthony Denis Millington
8th October 2018
Very good service and explained everything that was going on. Highly recommend TFS for a loan.
13th November 2018
Very thorough and informative.
3rd December 2018
Loans are subject to status and affordability. Consolidating debts may increase the term and the total amount payable.
Before entering into any credit agreement please make sure you can afford the monthly repayments, we recommend that you seek independent advice if you are unsure of any of the terms of our agreement. There may be other taxes or costs, not paid through us or charged by us, that you have to pay in connection with the agreement.
Late repayments can cause you serious money problems. For help go to www.moneyadviceservice.org.uk