How to find the best guarantor loan company for you

Introducing Optio Score

In this article we discuss the factors that can determine if a loan company is the best

There are so many factors to take into account when considering who the best is

We discuss Optio Score and how this simplifies the process

A need to simplify the guarantor loans market

We now have 15 lenders on our Compare Guarantor Loans table, and while this does offer more choice and prompts better value, it also makes selecting a loan more confusing.

In response to this, Choose-Wisely.co.uk came up with the concept of the Optio Score to simplify a confusing market.

What is Optio Score?

Optio score is a simple number out of 100 that summarises a guarantor lenders loan products based on:

  • costs, charges and fees
  • consumer service and friendliness
  • loan features and benefits
  • the simplicity and convenience of making an application
  • the Mum Factor, the most important one - would we recommend the loan to our Mum!

Optio Score Example

So, for example, if you take a look at our Compare Guarantor Loan table, you will see something like the screenshot below:

Where different lenders have different Optio scores.

The purpose of this is not to absolutely say that these are the ‘best’ lenders, but what this does do is give you another pointer to help you decide the best loan for you.

How is Optio Score Calculated?

Choose-wiseley.co.uk keep the precise method of calculating this score a tightly guarded secret, so lenders cannot try and manipulate their score.
We do know, however, that the three key factors that the score takes into account are:

  1. Loan simplicity - the product is fairly easy to understand and not overly complicated
  2. Features & benefits – that there are good useful features, for example the ability to make over payments at no additional cost
  3. Sentiment – this is how we ‘feel’ about the lender and their product, in our dealings with them are they imparting friendliness, professionalism and trust?

What other factors should I take into consideration?

We would suggest that the Optio score is not the only factor that you take into account when deciding which loan is best for you. While it is a very useful guide we would suggest you also consider:

  • APR, monthly repayment and overall loan costs

Fundamentally, the lower you can keep the APR and your monthly repayments, the less the loan will cost you. While the overall costs are not everything (especially if there is not much difference between the lenders you are considering), it is a major item to consider

  • Status of borrower and guarantor

Some lenders now make special allowances for your status, for example:

Homeowner or not – there are lenders now who offer lower rate loans for those who are homeowners as well as their guarantor
Age – some lenders accept younger / older borrowers and guarantors than others
Bank account – some lenders have higher requirements than others regarding a borrowers bank account, for example some require the borrowers bank account to have a debit card and direct debit facilities
Spouse as guarantor – most lenders do not allow your guarantor to be financially related, such as your spouse, although we do have one lender who does accept an applicant’s husband or wife to be their guarantor

Make your own decision

It is worth spending a little bit of time researching the different options, so that you can make your own valued decision as to which is the best option for you.

At the end of the day, only you can decide which ultimately is the very best guarantor loan company for you, for only you know your own particular individual circumstances.

Loan Calculator

Use the loan calculator below to estimate monthly loan repayments.

Approximate figures

  • Monthly repayments from to . Total repayable from to . Representative APR's from to

Click to see all our lenders Representative APR's

This tool is for GUIDANCE ONLY. It is designed to help you estimate loan repayments. It uses the representative APR of each product. Lenders have a duty to conduct affordability checks when you apply for a loan, see Responsible Lending.

Compare Loans

Click below to compare all our different loans from all our different lenders.