However, bad credit is not the only reason as there can be any number of other reasons why a lender will refuse a loan or credit and they are:

Self employed applicants – Being self employed in itself does not bar you from applying for a loan but it does mean that it will be harder to prove your income and lots of people will have trouble providing lenders with 3 years accounts (which is usually the minimum they will ask for). Also, those lenders that will allow some flexibility will insist that you have been self employed for a minimum of 12 months and will still demand 1 years accounts and a projection of income from your accountant.

No credit history – This is an odd one but it is a real issue. This is where an individual applies for a loan but for whatever reason, they have no previous credit on their file and because of this, lenders cannot complete a credit score on the applicant simply because there is nothing showing on them to achieve a score. Confused? Let us explain by using this as an example:

An applicant applies for a loan online but as they are only 19 they have never had any credit previously and we mean none. This means that when the automated credit search takes place, the credit reference agency used will not be able to find anything on the client which in turn means that there will be no credit score or at best, there will be a false positive meaning that the credit score given won’t really mean anything at all. Furthermore, it is not just limited to young, fresh out of college applicants. Mature applicants who may have paid off their mortgage are another age group that can suffer from this because (again as an example), it may be that they paid their mortgage off 6 or 7 years ago and since then they have had no credit at all as they have paid cash for all of their purchases.

Earned income + benefits
Whilst there isn’t a lender in the UK that will accept an applicant for a loan if they are unemployed (if they do it would be classed as irresponsible lending) there are plenty of guarantor loan lenders who will accept an individual if they are earning a wage (even if it is a part time wage) that is then ‘topped’ up by other benefits such as Disability Living Allowance, Working Tax Credits, Tax Credits, Incapacity benefit or Carers Allowance. All of these are perfectly acceptable as long as they are additional to the main earned wage.

So now you understand where and for whom a guarantor loan can help, it is now time to discuss how they can help to rebuild or repair your credit profile.

Let’s say that you are 25 years of age and renting a property with a friend. Your credit history may be patchy…A couple of County Court Judgements (CCJ’s), a few defaults and a number of missed payments, possibly leading to arrears on your rent. Without trying to be too harsh, there is absolutely no way on this earth that you will be accepted for a loan by any UK lender, which is fine, you probably accept that.
The issue is that these stains on your credit history are going to be on your record for 6 years, now whilst some lenders won’t always take these into account after 3 years, many still will meaning that not only can you not get a loan today, but you will struggle to get a loan in 2, 3 or even 4 years time because these issues will stay on your credit record.

However, where this is not a fair system is highlighted by the following. What if you are renting a property with a friend now because your previous relationship broke up a few years ago and you and your ex-partner had to go your separate ways which included splitting up the proceeds of your home together? What if you personally came off worse financially and ended up paying for your ex-partners debts (easily done if you got joint credit / finance and the ex-partner goes missing?)
This could mean that although these things happened 3 years ago and that all of them are paid off, this will still affect you when you come to obtain a loan or other form of credit. Worse still, what if you now have a decent job, a healthy disposable income and no credit commitments (simply because you have not been able to get credit for the last few years!)

This is where a guarantor loan can help you out, both from the “I need a loan” perspective and the repairing of your credit profile. Guarantor loans allow people who would normally be declined by their bank or other lenders for a loan, to get a loan as long as they find someone to endorse or vouch for them. The person doing the endorsing is known as the guarantor and they will have to have a pretty decent credit history (although it doesn’t have to be perfect) and they must be a homeowner. So for example…You apply for a £5,000 guarantor loan and you get your uncle to act as your guarantor and within a few days, that loan will be in your bank account allowing you to go on that holiday with your friends or buy a car or whatever reason you needed the money.

Now this is the important bit to remember about guarantor loans….

Although the credit score is completed on the guarantor, not the applicant (it wouldn’t work otherwise), the loan is effectively in the name of the applicant. This is because the lender has a duty to inform the credit reference agencies (either Experian, Equifax or Call Credit) about the loan transaction and the performance of the loan, ie. is the loan being repaid on time every time. What this means to you, the borrower, is that whenever any other lender, bank, credit card company or other financial institution does a search on you, they will see that you have a loan with a lender (this is your guarantor loan) and that you, NOT THE GUARANTOR, have made regular repayments and most importantly, you have kept to the terms of your loan agreement. What this means for you is that everytime a lender sees this, they will see instantly that the old problems with poor credit appear to have gone away for good and that based on this credit search, you are now considered to be a responsible borrower who understands and accepts your obligations. That is why it is vitally important that if you take a guarantor loan out, you continue to make repayments each and every month until the loan is completed.

The other major point about this is also a plus point for your guarantor. They can guarantee your loan safe in the knowledge that after the initial credit score is completed, their name will not appear on any of the credit reference agencies files if the borrower does indeed default on their loan repayments. Of course, if the loan isn’t repaid then the lender will have recourse to go to the guarantor for full repayment of the loan, however, any missing payments or arrears will show up in the applicants name, not the guarantors meaning that a guarantor loan is one of the safest and easiest loans to apply for, both from a borrowers and a guarantor’s perspective.

One final word of warning…

Only apply for a guarantor loan safe in the knowledge that you will endeavour to make all of the contractual repayments on the loan. These loans really are the last chance saloon and if you do not keep up the repayments on a guarantor loan, then the chances are that no lender will consider you for a loan for a very long time afterwards. The other thing to mention is that if you do not repay the loan then you and your guarantor’s relationship is bound to suffer as a result because the lender will start the process of trying to recover the money from them, if you cannot or will not repay the loan so please think about your actions very, very carefully indeed. Lenders will not shirk away from going down the legal route to reclaim their money and worse still, all costs of going to court, solicitors letters, etc will be passed on the borrower and / or guarantor.

In summary, guarantor loans can be a fantastic way of not only getting your hands on some cash but they can also go a long way to improving your credit profile.

Guarantor loans are not only useful for people who do not have a credit history they are great for people who have a bad credit history which they would like to restore. It is possible for anyone to run into financial trouble which can have an adverse effect on their credit scoring. ” providing payments are met on time the borrower can build or restore their credit history by using their guarantors credit standing. Guarantor loans are unsecured which means the individual who is acting as third party for the loan is not at risk of losing their valuables i. ” this helps to offer safety for the guarantor if anything was to go wrong. However the guarantor must take note that if the repayments of the loan are not met, the lender could decide to go to court which means it could be turned into a secured loan, however this would be a last resort if no other arrangement could be made or agreed on. When looking to obtain any type of loan it is always important to do some research.

Guarantor loans are most suitable for people who are having difficulty obtaining credit. In these cases, guarantor loans provide a good alternative and a rapid payout, subject to affordability, providing there is someone who can act as your guarantor. Dream finance has access to the largest guarantor loan lenders in the UK. We treat each case individually and using our expert knowledge of the guarantor loan market, place your application with the lender that is most suitable for you. This leads to much higher acceptance rate and means you are going to get the best deal available to you. We do not charge any upfront fee’s or admin charges for our guarantor loan broker service. from the lenders and all guarantor loans though Any Type of Loan are under no obligation.

Guarantor loans are loans that are given to people with a bad credit history and they require the use of a guarantor. Using this kind of loan is actually beneficial to people with a terrible credit status as it can improve credit score; as long as the loan is kept up to date and paid promptly. Currently, the ongoing amounts available for this type of loan are between £1,000 and £5,000 payable within twelve to thirty-six months. Borrowers can always pre-terminate the loan by paying ahead of the scheduled deadline. The guarantors for guarantor loans, on the other hand, are individuals who agree to serve as replacements for the loan in case the borrower is not able to pay the loan. In other words, if the borrower cannot pay the loan, the guarantor agrees to pay the loan. If you have any questions you can look at our guarantor loans FAQ’s.

A guarantor loan is one of the most innovative and flexible unsecured loan products in the UK and it allows anybody, regardless of their credit history, to get a loan when it seems that every other avenue has come to a complete stop. The problem is that the banks have tightened their lending criteria to such a degree, that even if you had a really good credit history a few years ago, the chances are that the same credit profile would not pass a lenders credit score today (and if it did, your score would undoubtedly be lower this time around – quite often at no fault of your own)

Most lenders in this market are pretty insistent that if an individual is approved for a guarantor loan and they have (for example) a raft of payday loans which are causing them hardship, then these loans must be repaid out of the proceeds of the guarantor loan. Lenders have a responsibility to lend responsibly and the OFT will come down hard on any lender or loan provider that does not adhere to these guidelines.

The other thing to note is that here at www.anytypeofloan.co.uk, we consider guarantor loans to be a form of credit repaid and it allows credit impaired individuals to rebuild their credit by becoming a responsible borrower who pays their debts on time every time and a guarantor loan that is paid back on time each month will achieve this for the borrower.

So, if you are in a payday loan spiral, why not consolidate that debt with guarantor loans.

Here at Any Type of Loan, we process a client’s application from start to finish and unlike most other companies, we do not charge any upfront loan application fees (or finders fees as some firms like to call them). We will take your initial application and speak to you and your guarantor and get all of the details we need to make an informed decision about your loan requirements. We will then process your application and do all of the relevant checks.

Again, unlike other companies on the web, we deal with 3 different guarantor loan lenders so that you can be sure that you are getting the very best deal for your circumstances and not just the one that your sole lender or broker is offering. The thing that a lot of people do not take into account is that whilst there may be a cheaper guarantor loan deal out there (and we are only talking a few pounds difference a month) the main issue with getting accepted for a loan is exactly that – getting accepted for a loan! We deal with a brand new guarantor loan lender that has the lowest acceptance criteria for a loan meaning that more deals get accepted every day which in turn means that you have a better than average chance of being accepted for a loan.

For the guarantor we try to make it as easy as possible and we also try to make it as quick as possible and we also offer non homeowner guarantor loans which we believe is a first for our industry. Our site is simple to navigate around, we don’t employ vast call centres and you can get through to one of our underwriters directly anytime you wish to discuss a case. We also make a promise that we will never sell your data as we have never done it yet and we have no plans to whereas other companies will immediately pass your personal details on to other companies who will then hammer you with endless texts and emails…You know what we are talking about and more importantly, you probably know who we are talking about!

You can rest assure that every single guarantor loan application is treated in the strictest confidence and that is why we get so many referrals from satisfied customers because they know their data is safe with us.

So for the widest range of guarantor loans in the country and probably the best service in the country, call or email us today and we will call you straight back and help you wherever we can.

Sometimes, an amalgamation of too many loans such as payday loans and other short term lending can leave you massively over exposed and in some cases, people get themselves into situations where their outgoings exceed their income. This is known as being over indebted and many, many people are in this position. Now whilst a loan will not make everything suddenly ok, it may help to alleviate the financial pressure you are under, particularly if it helps to consolidate all of your debts into one monthly payment.

For more details, just call us on 0151 343 3791 or email us at enquiry@anytypeofloan.co.uk

The applicant

• The applicant must be at least 18 years of age and 69 at the end of the loan term and they must reside in mainland UK (England, Scotland and Wales only).
• The applicant must be employed although they don’t have to be employed full time .
• They do have to have a disposable income of at least £200 a month after all outgoings (credit commitments).
• They can borrow up to £5,000 immediately.
• The loan can be used for any reason at all apart from (obviously!) illegal purposes.
• If the applicant is not on the voters roll then we will need proof of residence.
• CCJ’s, defaults and arrears are acceptable

The Guarantor

• The guarantor must be at least 23 years of age and 69 at the end of the term and they also must live in mainland UK.
• The guarantor can be a friend, neighbour, work colleague or a distant family member – they don’t have to be an immediate family member (sister,brother,mum,dad,etc.). In fact your loan guarantor can be anyone who agrees to support your application.
• Employed full time or part time is ok
• Must have a disposable income of £200 a month
• Must be on the electoral roll
• Must pass a credit score that we determine and this will also determine the amount that the applicant can borrow.

So as you can, the criteria for becoming a guarantor for a loan isn’t that onerous but if you have any questions then feel free to call us confidentially on 0151 343 3791 to discuss your case in detail.

Unsecured loan

These loans are also sometimes known as…
• Tenant loans
• Bad credit loans
• Student loans (different to the Government sponsored grants and loan schemes)
• Poor credit loans
• Guarantor loans
• No credit check loans
• No upfront fee loans

Whatever they are called (and we are a massive number of other terms used to describe unsecured loans) they are all the same in one important respect and that is:
An unsecured loan means that the loan given to you by the lender is not secured against any asset and that is why these types of loans are more suited to younger people who may not have had the opportunity to buy their own house or car yet (a house and a car are both assets) so they are ideally suited for people who…

• Live in privately rented accommodation
• Live in council accommodation
• Live with their parents
• Live in student accommodation

So, in a nutshell, an unsecured loan means that the loan is offered to an individual who doesn’t have anything to offer in return such as a house or car. This is a fairly high risk type of loan for a lender because if the borrower cannot or will not repay the loan for any reason, then it means that the lender’s only recourse to getting their money back is through some strongly worded letters and then of course to apply through the courts. This will mean that the borrower could end up with a default or a County Court Judgement (CCJ) and once they have got one of these on their credit profile, they will find it almost impossible to get any type of credit for the next 6 years (unless of course they get a guarantor loan)

Plus, I should also note that the interest rates and APR are likely to be much higher for this type of lending (especially if you go outside of the usual high street banks such as Barclays, Natwest, Santander, etc)
However, the argument that an unsecured loan through a loan provider that specialises in bad credit is wrong is fundamentally flawed. Why? Because to the people who may end up borrowing via this route it is their only way of borrowing money which may make their life easier from an affordability perspective.

As an example:
A customer may have outstanding loans and finance which means their disposable income is very, very low…So low that their income is almost dwarfed by their outgoings. This (hypothetical) borrower may have outgoings of £750 a month made up of credit card payments, payday loans and other finance and they are struggling to even put petrol in the car and pay for food each month.
An unsecured loan of £5000 with repayments in the region of £200 per month could free up almost £500 a month of income for this person so how can this be a bad thing? Yes, the interest rate and APR are not what they would choose in an ideal world but let’s face it, this isn’t an ideal world and unless this person does something fast, they will soon rack up a CCJ or default because they cannot afford to keep making payments and with CCJs and defaults comes charges for unauthorised borrowing, legal and debt collection costs and before this person realises it, they are now in the position of these companies a whole lot more because of the cumulative effect of a whole bunch of extra charges.

That is why we do not think that APR is a particularly accurate way to reflect the reasons for borrowing an amount of money because in many cases, people need a loan to consolidate their existing loans, finance and other debts and the interest rate and/or APR does not come into it as the only thing that matters to a borrower is this;
Can they afford to repay the loan each month and will it mean they have more disposable income each month and the answer is invariably YES.

Now that we have explained how an unsecured loan works, next time we will take a close look at secured loans and how they work in practice, how much you can borrow, interest rates, etc.

So here it is, your free cut out and keep guide to applying for a loan with a guarantor.

Q: Will my Guarantor have to give their bank details?
A: Yes they will. Simply because if the person applying for the loan fails to keep up the monthly repayments, then (after a couple of attempts at trying to get the applicant to pay) we will go to the Guarantor to ask them to pay. Of course, the following month we will again firstly ask for the repayment from the applicant, not the guarantor.

Q: Does the Guarantor have to be a homeowner?
Yes they do. They must also live in a property that they own so someone with a lot of investment properties that lives in rented accomodation would not be suitable.

Q: I’m in a debt management plan – will that stop me getting a loan?
No, we can still offer you a loan but it will be what is known as a joint guarantor loan. The loan works in pretty much the same way as a normal guarantor loan but it means that both the applicant and the guarantor become joint borrowers and both will find their names (and responsibilities to the loan) on the loan agreement.

Q: Can my partner be my guarantor?
Yes they can but the loan will be restricted to £3,500 instead of the usual £5,000

Q: Can I borrow more than £5,000?
Yes, you can borrow up to £7,500 with our guarantor loans.

Q: Do you charge fees?
No, No and No. Make sure you avoid any company who charges upfront fees.

Q: My parents are retired, will that stop them qualifying as a guarantor?
No, as long as they own their property and can prove they have an income each month (not just state pension but also a private pension) then they can still apply to be your guarantor.

Q: Can I get a loan if I am unemployed or on benefits?
Unfortunately not. If you are receiving Working Family Tax credits IN ADDITION to a monthly salary then we can absolutely consider you for a loan.

Click here for a full and comprehensive list of Guarantor Loan frequently asked questions

The reason it affected this industry so severely is simply because it impacted on lenders ability to do what it says on the tin, ie. Lend money to people who want to borrow it! The fact that many lenders were and still are unable to lend money to whole sections of the UK population is a major problem and one that most industry commentators seem to ignore as they often think that the lack of funding available for lenders is restricted to mortgage lenders, yet there is a huge swathe of unsecured loan providers who simply do not have the funds to lend anymore, certainly not to people with a poor credit profile anyway.

So, along comes the guarantor loan. A plucky little product that is mistakenly referred to as being a “new concept” when the reality is that guarantor loan products have been around for many years and in the mortgage industry, a guarantor loan has quite often been the mainstay of certain lenders product portfolios.

The difference here is that the guarantor concept has been re-modeled and re-aligned for the loans industry and in particular, the unsecured loans industry. It allows people with a “no particularly clever” credit history to apply for a loan of up to £5,000 and low and behold, get accepted! The acceptance is (of course) dependent on a number of factors, the main one being that you need a guarantor but we will talk more about that in the next article.