Frequently Asked Questions
Can I really apply for one of these loans?
From our experience we have found that when people have turned down for a loan previously, they need to find a lender who will not penalise them for past financial mistakes.
- Our lenders will lend to you
- Though before they lend, our lenders will do a very brief check just to make sure the applicant is not bankrupt, in a Trust Deed or IVA
- They are not interested in your current score, missed payments or even CCJ’s.
- So the accurate way of describing this is that your financial record will be very briefly checked, but not scored.
Why are you loan more widely available?
Most lenders look at your credit score as one of the primary deciding main factors as to whether they will lend or not.
- Our lenders so things differently
- Instead of looking at your credit file our lenders ask that you find someone to back your borrowing, a friend or family member, and it’s their credit file that our lenders will look at and not yours
- You will be borrowing money and making the repayments, but just in case you do not the lender will be approaching your guarantor to make the payments
- It is therefore very important that you are very able to make your repayments, for we are sure you will not wanting to be calling on your guarantor to be making these payments for you?
How do I find someone to be my guarantor?
Your guarantor can be anyone, a friend, work colleague, family member, or even your Landlord!
- It just needs to be someone who trusts you to pay back as you have promised, for they will not wanting to be making the repayments on your behalf. They will also need to meet the Criteria
- So all you need to do is start asking people
- The main objection people will have is the worry that you will not make the repayments and they will have to make these for you; so if you address these concerns up front then people are more likely to say yes
It is therefore worth making sure you can make people more comfortable by explaining why you need the money, how much you will be borrowing, for how long, and display to them that you can afford the repayments.
What if I cannot find a loan guarantor?
Over 10 percent of people who take out this type of finance did not originally think that they would be able to find a guarantor.
- The key is to firstly make sure that you can address their concerns up front and display that you can comfortably afford the repayments
- Then make a list of all the people you know who also trust you, this list will probably be longer than you think, friends, work colleagues, parents, relatives
- Then all you have to do is ask them, for they may even say yes!
- If you have been through this process and you cannot find a guarantor, unfortunately at this stage we are unable to help.
Our lenders finance is better value than others on the market and have lower APR’s, because they require borrowers to have a guarantor.
How much money can I borrow?
From our lenders you can borrow anywhere from £50 to £10,000, and from only a few days to 5 years.
- One of the first things to do is thing about the minimum amount of money that you can get away with borrowing, for remember that you will have to pay it all back, plus interest
- So to help you calculate how much money you can comfortably afford please see our Calculator, you can use this to look at different loan amounts over different lengths of time and see what the repayments and charges will be
What are the costs and who do I pay?
There are varying fees and costs associated with the money you can borrow, and these vary from lender to lender.
- A good starting point is to use our, Calculator and this will give you good starting point
- To find out exactly what all the costs will be we recommend you apply, and from this you will get a range of offers from all our lenders which will give you the specific costs per lender
Please remember that applying will not cost you or obligate you to anything.
Can I pay the finance off early if I want too?
Yes – and there are no fees or charges for paying of quicker.
- You can pay of early, or make increased payments to pay of quicker also
- The interest is calculated on a daily basis, so as soon as you’ve made your increased payments, your interest costs will immediately reduce
Can repaying the loan actually help to improve my rating?
- The way your credit file works, is that lenders can look at all your payments, missed payments, CCJ etc. over the last 6 years
- So if they only see bad things such as missed payments, then this results in a very poor credit score
- Though if on your file it shows you successfully paying back borrowed money without missed payments, then paying the finance off completely, this is a very positive sign on your file and your credit score will increase.
You will only have a completely clean credit file after 6 years have passed since your lase missed payment or CCJ, but paying off one of our lenders finance agreements would go a long way to improving your credit file more quickly.