Frequently Asked Questions
Why will you lend to me when I’ve been refused before?
Many mainstream lenders will not approve finance for people with a poor credit history as they see the risks as too great. However, the companies we work with have different application criteria and as such are more likely to approve your loan.
This is because our lenders require that you have a backer to guarantee the loan and they take into account their credit history rather than yours when reviewing your application. This means that as long as you have not been declared bankrupt or are subject to an IVA or Trust Deed our lenders should have no problem approving your application.
What is the role of a guarantor?
A guarantor is a friend or family member who is prepared to put their name on your application as someone willing to fulfil the loan repayments if you are unable to do so for any reason. This person will need to be:
At least 18 years old and no more than 75 for the duration of the loan.
A UK resident.
A homeowner or a tenant (requirements differ depending on the company).
Not financially dependent on the applicant (no spouses for example).
In possession of a good credit history.
It is very important that the person you choose understands the situation and that they will be financially liable for the loan of you are unable to make your monthly payments.
How much could I borrow?
We have a range of lenders from those who specialise in very short term, low value loans to those who are prepared to lend over a longer period. Generally, it is possible to borrow:
- Between £500 and £12,000
- For a period of six to 84 months (depending on the company and loan amount)
- With a APR of around 49% (apart from the very short term loans)
Your repayments will be calculated based on the amount you borrow and the term of the loan. Our ‘Apply Now’ table will give you an idea how much these repayments will be although please keep in mind that these will differ from lender to lender so always make sure you double check the figures on each individual offer.
I don’t own my own home, is this a problem?
In the case of many of our lenders this is not a problem at all. Some will require that you are a UK homeowner but others are happy to lend to tenants.
Similarly, some of the companies we work with will require that your guarantor is a UK homeowner while others are also happy to approve applications where they are also tenants.
We advise that you fill in the application carefully and always check the small print to make sure your details are all correct.
Is there any way I can improve my credit rating?
Yes, there is! As you make the repayments on your loan the lender will keep the major credit agencies updated so if you pay the loan regularly and on time you will actually end the term with a higher credit rating than when you started.
This should in turn give you more freedom if you choose to take out a loan again, even with a traditional high street lender.
I’ve come into some money; can I pay off the loan?
Most of the companies we work with have no problems with overpayments or you clearing the loan in full. As interest is calculated on a daily basis any overpayment will bring down your subsequent repayments. There are usually no fees involved in paying off the loan as long as the minimum time has passed. We recommend you talk to your lender to find out more about their terms and conditions if you find yourself in this position.
What happens if I can’t afford the repayments any longer?
When you take out the loan the lender will make sure that they are happy that you can afford the monthly repayments. If, however, your circumstances change dramatically due to ill health or redundancy, for example, it is extremely important that you inform them as soon as possible.
In the first instance most lenders will try to work out a new payment system for your changed circumstances but if you are still unable to make the repayments your guarantor will be expected to do so on your behalf. It is, therefore, also important to keep them informed should your circumstances change.
I want to borrow money to go on holiday, is that okay?
There are no restrictions on how your spend the money you are borrowing, however, we would urge you to think carefully about whether you really need a holiday or other ‘luxury’ item in the short term.
You are relying on the good will of your friend or family member (as well as their credit rating) to borrow the money and there is always a chance that you might damage that relationship.
If you are certain that you can repay the money with no problems and only need to loan to tide you over, then how you spend the money is completely up to you!