A more affordable payday loan alternative

The facts
Payday loans are not the only loan option when you have a bad credit rating. If you are looking for a loan for up to four weeks they can be a good option, but if they are taken for any longer they can become very expensive. This page looks at a Guarantor Loan as a cost effective alternative.

If you need a loan for over four weeks a payday loans can become very expensive
A guarantor loan could be a more cost effective alternative
We have 15 of the UK’s best lenders giving you the very
best choice of guarantor loans

Lower interest rates as you have a guarantor

By providing a guarantor with a clean credit history, the lender can afford to charge you less as there is less risk of you not paying back the loan

Your guarantor will typically be a family member or friend, someone who knows and trusts you.

It does not matter if your credit rating is poor

The lenders look at the status of your guarantor rather than your credit file, so if you have missed payments say on a previous loan, a credit card, mobile phone or even a CCJ then this is not a problem.

Just like a payday loan you can pay off the loan at any time

One of the advantages of a payday loan is their flexibility, you can pay them off at any time. Most of our lenders have flexible payment terms which allow over payments, or paying off the full balance at any time.

Please note our lenders do change their terms and conditions from time to time, so make sure before you take out a loan with them that there are no overpayment, or early re-payment, fees.

Representative Loan Example

The following is representative example our specialist short term loan lender The Quick Cash Club:

  • Borrow £250 over six months. Repaying £72.86 a month
  • Total repayable £437.16 Interest Rate 225% (variable)

For more details about the Quick Cash Club click here.

Or if you would prefer to look at the other loan options our panel of lenders can offer, click on Compare Loans below.

The differences between payday and guarantor loans

The following table briefly summarises the differences between a payday and a guarantor loan:

Payday

Guarantor

Bad credit history

Poor credit rating allowable, though precise criteria ranges from lender to lender.

Poor credit rating allowable, though your guarantor will require a clean (or only very slightly imperfect) credit history

Guarantor required

No

Yes

Length

Designed to be taken for up to four weeks, up to your next payday. If you take the loan out for longer periods, the high interest rates can make this form of borrowing very expensive

Small loans are available from six months and larger loans up to seven years, so there are many more options. But if you want a loan for only up to four weeks, payday could still be an option.

Amount

Loans typically range from £50 to £2,000 (though the upper limits are always changing)

Loans currently range from £100 to £15,000, so much larger loans are available

Representative APR?

Rates are typically up to about 1,500% representative APR (though this is constantly changing from lender to lender).

From £100 to £500 our lenders loans have a representative APR of 304%, and from £500 to £17,000 the representative APRs range from 39.9% to 54.9.

Early repayment and over payments

This is a commonly allowable feature with payday loans

This is a commonly allowable feature with guarantor loans

Discrete online application

Yes

Yes

Same day funds available

Yes – with many lenders

Yes – with our lenders smaller loans, on receipt of a completed application form

Reputation

Payday loans have a poor reputation mainly due to very high interest rates. If you choose a reputable company and pay the loan back within four weeks, then this reputation should not worry you.

Guarantor loans are less well known, but this does not mean they are not an option to consider. They can be more cost effective, especially if you need the money for more than four weeks.

Frequently asked questions

1Can I find out more about guarantor loans?

Absolutely, we strongly believe that you should find out as much information as you can before doing anything.

Please check out our page What is a guarantor loan – The facts which gives plenty of detailed information.

2I would also like to find out more information about the guarantor

Finding a suitable guarantor is one of the most common questions, for more information on this please see our page Being a guarantor – all you need to know

Note that this loan application is simply a request from the lender for a no obligation quote based on the amount you want to borrow, how long for, plus the status of you and your guarantor.

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

If you prefer we did the hard work visit Let us find a loan for you.

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.