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UK Credit Guarantor Loans FAQ
Who is UK Credit?
UK Credit is a direct lender of various types of loans, including guarantor loans. It started trading in 2010 and is a member of the Finance and Leasing Association, whose rules it must comply with.
How much can I borrow with a UK Credit guarantor loan?
This all depends on your personal financial situation and that of your guarantor. You will also need to consider how much you actually need to borrow and how much you can afford to repay. The maximum amount on offer through a UK Credit guarantor loan is £12,500 and the maximum repayment period is 60 months. However, not everyone will be eligible for this amount.
How does a UK Credit guarantor loan application work?
After you have decided how much you would like to borrow and for how long and have found a trusted guarantor to help you borrow, you can apply online through the UK Credit website. UK Credit will then carry out some checks and call you and your guarantor to check that the loan you have applied for is affordable for you both. If you fulfil the eligibility criteria, your guarantor will receive the loan to later transfer to you, the borrower.
What is the role of a guarantor?
A guarantor is usually a close friend or family member of the loan applicant who trusts them to be able to meet the repayments required of them. However, if they cannot repay the loan, the guarantor is committed to making the repayments on their behalf. Therefore, the guarantor’s financial status and employment situation, for example, will be analysed by the lender before they offer the borrower the loan.
Does the borrower need a strong credit rating when taking out a UK Credit guarantor loan?
Not necessarily. The idea of a guarantor loan is that it allows those with poor credit histories to obtain loans despite their financial problems. The guarantor provides security against the borrower defaulting. Many guarantor loans can be taken out without the borrower even having their credit rating checked. However, the guarantor will usually need to undergo and pass a credit check. At the very least they will need to provide evidence of a regular income.
Does a guarantor have to be a homeowner?
No, guarantors who are tenants are considered but you may be able to secure a larger loan or better loan terms if your guarantor is a homeowner.
How can I compare guarantor loans?
You can compare the cost of guarantor loans by checking the APR (annual percentage rate), which shows you the cost of the loan, presented as a percentage of the loan amount, over the course of year, including interest charges and any fees.
However, you should also consider which lenders offer the right loan amounts and terms for your requirements and whether you are eligible.
Services offered by this provider may change over time. Always check Ts&Cs.