Guaranteed Loans – Top 10 Loan Providers in UK

guaranteed loans

If you’re having trouble getting a loan, guarantor loans allow you to borrow with the support of a guarantee. If you can’t make your payments, a family member or friend ‘guarantees’ that they will.

If you’re starting and don’t have a credit history, guaranteed loans might be a fantastic alternative. You may also have a bad credit management track record, such as missed credit repayments, account defaults, or too many credit applications.

One of the advantages of a guarantor loan is that it allows you to develop a decent credit score as long as you make your payments on time.

What is the process of obtaining guarantor loans?

Guarantor loans operate similarly to other types of loans in that you borrow money from the lender and then repay it in monthly instalments. The main difference is that a third person, your “guarantor,” is a member of the arrangement, having committed to making your payments if you are unable to.

Depending on the lender, the guarantor may get the loan first. They may either deliver it to the borrower or return it to the lender within the two-week ‘cooling-off period.’

You (the borrower) will get a lump payment if the guarantor is satisfied with the arrangement. You must repay it by the conditions of your loan (usually between one and seven years).

Guaranteed Loans – Top 10 Loan Providers in UK

1. TSB

TSB

The TSB loans are accessible to enterprises that are 51 per cent or more owned and actively managed by a female, a person of minority background, a service-disabled veteran, or a person with a handicap.

Loan eligibility is not contingent on TSB certification; nevertheless, once the firm is in operation, it is highly advised to become a certified TSB.

2. M&S Bank

M&S Bank

M & M&S Bank is a leading supplier in the personal loan area, particularly for borrowings of £7,500 to £15,000, where interest rates are the lowest. The bank now provides repayment options of up to seven years for affordable monthly payments.

3. Santander Bank

Santander Bank

Santander Bank does not provide a list of minimal qualifying standards, but you must persuade the lender that you will be able to make your payments to qualify. That implies you’ll have to provide a source of income.

You’ll also need to demonstrate that any existing debts do not exceed your monthly income. A guaranteed loan requires no application charge, yearly fee, or down payment. There is also no penalty for repaying the loan early.

4. Cahoot

Cahoot

Cahoot is a business of Santander UK that offers consumers a variety of additional products, including fixed-rate bonds. Cahoot Loans is a firm that offers personal loans up to £20,000 with payback terms of up to five years. Applicants may apply online and expect to hear back within 24 hours.

5. MBNA

MBNA

Are you thinking about getting a loan from MBNA Loans? Maybe you already have one and are seeking more information about the firm. MBNA Loans provides personal loans via Lloyds Bank. MBNA Loans is a UK-registered credit broker.

The firm was founded in 1993 and is situated in Cheshire.

6. Tesco Bank

Tesco Bank

Tesco (Tescobank.com) is currently a significant financial services company, providing credit cards, savings, mortgages, travel goods, insurance, and secured loans to its numerous consumers and a current account.

Tesco allows consumers to earn additional points on their Clubcard when they buy financial goods, which may be used for prizes and vouchers. Customers may use Tesco Bank online, via phone, or at one of their local supermarket’s Tesco branches.

7. Virgin Money

Virgin Money

They provide highly competitive interest rates and fees, simple online platforms, and superior information and phone support to other banks. I’ve never had anything to complain about with Virgin Money in my seven years of service.

8. The AA

The AA

In case you haven’t heard of it, the Automobile Association (AA) is a British organisation assisting its members since 1905. In addition to breakdown assistance and driving training, the AA now offers financial services such as insurance, savings, and personal consolidation loans.

The Bank of Ireland UK provides AA loans, and AA Financial Services Ltd is a credit broker rather than a direct lender.

9. Post Office Money

Post Office Money

Post Office Money offers various financial services such as current accounts, mortgages, and personal loans via its locations, online, and by phone. When you apply online, you generally get a fast decision.

While Post Office Money rates are often reasonable, the quoted sample APR may differ from the rate you’ll receive: Post Office Money will provide you with a rate depending on your tax credit score, income, and spending. Our estimates are based on the advertised APR.

10. Payday Loans with Bad Credit

Payday Loans with Bad Credit

While there are no guaranteed loans, Payday Negative Credit may help you increase your chances of acquiring a guaranteed loan, even if you have a bad credit history. They provide loans of up to £1,500 repayable over 3 – 9 months for those with bad credit.

So they can assist even if you’ve been rejected down elsewhere. Their loan application is finished online in less than 5 minutes, and they get an immediate decision on the screen. Successful customers will get monies within 1 hour of approval or on the same day they applied.

Conclusion

As the name implies, guaranteed loans are loans for which every single application will be granted, regardless of their credit score or ability to repay the loan. They are similar to no credit check loans in that the results of any creditworthiness or affordability checks are not considered.

Guaranteed acceptance loans have a greater default rate, but no firm would accept losing money without taking precautions. To compensate, guaranteed direct loan lenders are expected to raise interest rates and costs for all consumers.

They are also unlikely to have any mechanisms to assist consumers in avoiding loan default. If you were unable to make a certain payment on a guaranteed loan, you were unlikely to be able to establish an alternate payment plan with the guaranteed loan direct lender.

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