Frequently Asked Questions
Aren’t you just pay day lenders in disguise?
No, absolutely not! Pay day lenders justify charging exorbitant rates of interest to people who generally have a poor credit history by considering them a ‘risk’. Our lenders are not interested in your credit history but in your ability to make the repayments on the loan. By including a guarantor on your application the lender knows that the risk of defaulting on the payments is greatly reduced and are able to offer a much lower rate of interest as a result. They are trusting that you and your backer are financially willing and able to repay the loan.
What is a guarantor and how do I get one?
They are a friend or family member who is prepared to guarantee your loan so if you are unable to make the repayments they will be required to do so. We cannot tell you who you should ask but they should be:
- Between 18 and 75 years of age for the duration of the loan
- A UK homeowner or tenant (companies differ on their requirements)
- Have a good credit history
- Not financially dependent on the applicant so no spouses
Most importantly you should be very clear through the application process exactly what will be expected of them.
What if I only need to borrow a small amount?
It is possible to borrow from just £50 at a much lower rate of interest than pay day lenders so we are sure that we can find the right loan for you. All you need to do is use our handy calculator and that will tell you what you can expect your repayments to be for loans between £50 and £500 or £500 and £10,000.
I’m only a tenant, can I still borrow money?
We have a range of lenders who can offer loans to a range of people regardless of their circumstances so we can certainly find a company who fits your requirements. The main thing we ask is that you can demonstrate that you can afford the monthly repayments whether you are a UK homeowner or a tenant. Similarly, there are loans available for people where their guarantor may be either a UK homeowner or a tenant so the best advice we can give is that you fill in the application with as much detail as possible to ensure you receive the best possible quotes.
I need the money quite quickly, is that okay?
As long as there are no problems with your application smaller loans are often available within an hour while larger sums usually take around 24 hours to clear. You just need to fill in the online form and supply your debit card details (we need these to verify your identity) and we will do the rest.
What happens if I can’t pay it back in time?
When you take out your loan it is important that you think about how long it will take you to pay it back. If it is only a very small amount you will almost certainly have no problems paying it back at your next pay day. However, if you want to borrow a little bit more it might be worth considering extending the length of the term as this will bring down the interest rates and you will probably find that you can afford to borrow slightly more. It is for these reasons that our loans are suitable for consolidating other short term pay day loans you may have taken out in the past rather than finding yourself in a debt spiral.
What happens to my guarantor if I miss a repayment?
Under most circumstances and as long as you keep your lender informed they will work with you to find a way for you to pay the money you owe. However, ultimately the responsibility lies with your guarantor to cover any missed payments and potentially clear the debt entirely. We would therefore advise you to consider extremely carefully who you ask and make sure they are aware of their obligations from the start of the application process.
I want to be able to borrow more in future, will that be possible?
As long as you make all your repayments in time and clear your loan within the agreed period your credit rating will actually improve and you might find yourself eligible for more traditional lending. This is due to our lenders keeping the three major credit agencies updated each time you make a repayment thereby increasing your credit score. If you are still unable to borrow from a ‘traditional’ lender you will still be able to take out another, possibly larger, loan with us and continue to improve your rating.