TFS Guarantor Loans - TFS Logo

39.9% on loans from £3,000 to £10,000, until 31st August 2018.

Terms and conditions apply. Click here for details.

39.9% APR Representative.

Unsecured Loans

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.

What are Secured and Unsecured Loans?

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.

Will I be able to take out a loan if I don’t own a home or have bad credit?

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.

What is an unsecured 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.

Why choose unsecured loans?

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 39.9% 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. Thinking about applying? You can watch our video for more information on how to apply for a guarantor loan.


You're applying to borrow £4,500.00 over 48 months. Repaying £172.88 per month. Total repayable £8,298.24. APR 39.9% Representative Fixed