Ever wondered to yourself ‘what is a guarantor loan’? Well, you’re in the right place to find out. At TFS Loans, we specifically offer guarantor loans – and they work a little differently than your average loan. They’re ideal for those with bad or no credit. Why? Because your loan won’t be approved based off your credit score, it will be approved based on who you know. By that we mean, if you have someone who is willing to support your application. Find out more about guarantor loans, right here.
Lots of people don’t necessarily know what a Guarantor loan is and how it is different from any other type of loan. A Guarantor Loan is a type of loan which isn’t based on your credit score, all you need is a someone with a good credit history to Guarantee the loan for you – by this we mean that they co-sign your credit agreement and in the event of you not being able to pay the loan back, they will pay it for you.
A Guarantor loan is ideal for people who’ve had a poor credit history or have no credit history and find it difficult to get a loan from their banks, credit card companies or other online lenders. Very often – particularly in the case of young people, a lack of credit history means someone can be refused credit that they are in great need of – to raise a deposit on their first house, complete a training course or buy a car for example.
Guarantor loans are a really old concept – they are trust-based loans, which is how most banks used to lend before things like credit scoring and checks were able to be implemented. They are becoming more and more popular, especially since the financial crisis and the subsequent clamp down on lending to people with less than perfect credit scores. At TFS Loans we specialise in Guarantor loans – it’s all we do, and we’ve done it for a long time – we were one of the first providers in the marketplace.
A Guarantor loan means that you need to find someone to act as your Guarantor. This person needs to be based in the UK and be aged between 18 and 78. They also need to be a homeowner – this doesn’t mean they have to own their home outright, it can be mortgaged. They can be anyone you know – usually, people ask parents, grandparents, aunts, uncles, friends and colleagues, but we’ve known people to ask their landlords and bosses.
We offer the largest Guarantor Loans in the UK – from £1,000 to £15,000. You can pay your loan back between one and five years. Our APRs vary from 29.9% to 69.9% depending on the amount you want to borrow. You can have the money paid into an account within 24 hours and you can apply online or over the phone.
We’d love to hear from you so if you have any questions, want to apply or just fancy a chat give us a call on 0203 476 6438 or visit our website.
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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