What are payday guarantor loans?
⇒ Payday loans are short-term loans from £100 – £1,000 for a few weeks up to your next payday
⇒ Guarantor loans are longer-term loans from £500 – £15,000 for 1 – 5 years
👎 DISADVANTAGES OF PAYDAY LOANS
- Cost – they can be expensive, with Representative APRs from 365% – 1,575%, compared to 39.9% to 59.9% for guarantor.
- Lump-sum – at the end of the loan, which is only a few weeks, you’re required to pay back the loan in a lump sum, which can be difficult when money is tight.
- Credit file – some credit providers do not like to see payday finance, if they see this, it may be a reason for refusing the application.
👍 ADVANTAGES OF GUARANTOR LOANS
- Cost – they can be much more affordable with much lower interest rates and described above.
- Affordable monthly repayments – as the loan is spread across 1 – 5 years, the lenders ensure the repayments are low and affordable for you.
- Credit file – can be used to help rebuild your credit score, so help you towards getting more affordable credit in the future.
For more information see: Are guarantor loans a payday loan alternative?
😀 GUARANTOR LOANS CAN BE SUITABLE FOR
- Bad credit rating – missed payments, defaults, CCJ’s? Our lenders can help.
- Non-homeowners – we’ve loans for tenants and non-homeowners; you don’t need a home.
- Same day payout – some lenders can pay-out the same day of the application.
- Affordable payments – loans from 39.9% to 59.9% Representative APR compared to 365% to 1,575% for payday loans.
- No Guarantor – we also have unsecured loans that do not need a guarantor
🚗 GUARANTOR LOANS TYPICALLY USED FOR
- Debt consolidation – consolidating more expensive payday, and other similar loans into one smaller more affordable monthly repayment.
- Emergencies – a more affordable way to cover those unexpected expenses that life can throw at you.
- Car repairs or replacement – unsecured finance that’s not tied to the car in any way.
Free, fast, no-obligation, no mark on your credit file