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Responsible Lending

Responsible lending is the term used to describe the way lenders and creditors can act in the customer’s best interests. This includes the way they can offer:

– Transparency in their product
– Treat personal information securely
– The best product for the customer
– Forbearance if the customer is experiencing financial difficulty

About us 

GuarantorLoans.com is passionate about responsible lending. As a credit broker, we are regulated by the Financial Conduct Authority and provide a simple way to compare guarantor loans in the UK. We feature a number of leading guarantor loan companies on our website and may take an introductory fee for referring you to them, details highlighted by the ‘see deal’ buttons.

We regularly state on our website that guarantor loans are best used for emergency purposes such as home repairs, medical bills and personal expenses. The loans we feature should not be used for material goods such as luxury items, holidays or shopping.

– Guarantor Loans is a registered Trading Name of Monevo Limited which is an Appointed Representative of Quint Group Limited
– Financial Services Register reference number: 723672.
– Quint Group Limited is authorised by the Financial Conduct Authority under reference number: 669450
– Monevo Limited’s Company number: 06511345
– Registered Office: Cottage Street Mill, Cottage Street, Macclesfield, Cheshire, SK11 8DZ
Information Commissioners Office number: Z1498441

For any questions, please email: enquiries@guarantorloans.com

Transparency 

We provide transparency for our customer as our comparison table clearly shows the name of the lender, representative APR, loan amount, duration and representative example.

This allows prospective borrowers to clearly see the lenders available, their products and rates they offer – allowing them to compare effectively and make an informed decision when applying for a guarantor loan.

The representative APR refers to the rate that will be charged to at least 51% of successful applicants that apply. This rate may vary between lenders and depending on the individual’s and guarantor’s credit rating and affordability.

We are always in touch with our lenders to ensure that any new rates or terms are changed immediately.

Our lenders will provide the customer with a loan agreement to sign prior to completing their loan. This online document will clearly state the terms and charges and this will not change during the loan duration.

How we choose our lenders 

We select our list of lenders on the basis that they are legitimate companies and that have authorization from the Financial Conduct Authority. Each lender must demonstrate their commitment to responsible lending and their loan rates and terms must be fully transparent on their website.

We only feature direct lenders to ensure you are only dealing with that company moving forward and not other brokers.

Find the best product for the customer 

The lenders we feature will have a set of procedures and assessments in place to ensure the right product for the customer. This could refer to lending an amount that they will be able to repay without suffering hardship or deciding not to lend to them at all.

Criteria: The loan providers will always have a responsible criteria in place such as applicants need to be over 18, UK residents, employed and have a working debit account. Guarantor loans will not be made available to those who are unemployed, on benefits or have experienced bankruptcy, IVA or CCJ.

Credit Checks: Every applicant and their guarantor will always be taken through a series of credit checks to determine their creditworthiness before being approved. By reviewing their credit history, the lender is able to get an idea of their repayment history, outstanding debt and open applications. This will allow them to decide whether a loan is right for them.

Affordability: Our featured companies will conduct a series of affordability practices to confirm that the borrower and their guarantor are employed and earning a salary to justify the loan amount. This may involve employment verification such as a pay-slip or bank statement. This is essential to find the right loan value for the customer or to establish whether they can afford the loan in the first place.

Forbearance 

A key aspect to responsible lending is to ensure that lenders offer forbearance to those that are struggling to repay. If a customer cannot repay, there should be information on the site available so the customer care team can be contacted. Responsible companies must offer flexibility for those in arrears such as repayment plans and freezing interest.

For collections, companies may provide repayment reminders on the days before a collection is due so there are no unsolicited collections or money is taken without permission. Lenders must not collect more than has been agreed in the loan agreement nor should they offer extensions or additional loans to those that cannot afford it.

<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
 
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”https://www.paydaybadcredit.co.uk/direct-lender/” data-mce-href=”https://www.paydaybadcredit.co.uk/direct-lender/”>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html” data-mce-href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html”>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”https://www.gov.uk/county-court-judgments-ccj-for-debt” data-mce-href=”https://www.gov.uk/county-court-judgments-ccj-for-debt”>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.