2014 Lender Lists:
Compare Guarantor Loans | Guarantor Lenders List 2014
We have marked 15 companies that offer guarantor loans online, whilst 3 have closed.
The pioneer of this sector was The Richmond Group’s FLM Loans brand. James Benamor brainstormed the concept in 2004 and their website followed in 2005. They rebranded in 2012 as Amigo Loans and have grown this new identity quickly through TV ad campaigning. Over the years, several upgrades have been made to their service. The loan can now be completed fully online, higher cash sums are available and early settlements can be requested for discounts once logged in. The competitors that have looked to edge in on their territory have focussed on pricing and the newest development has seen the option of Tenant Guarantors be introduced (Amigo only accepts tenant backings with exceptional credit scores).
Market Leader Competitors:
TFS Loans and UK Credit have been key competitors. It is Everyday Loan’s Duo service that has recently grabbed the headlines. Not only did they launch with the very cheapest rate, but they are now also willing to accept non homeowner guarantors. Several other impressive companies have arrived recently. The collective brute force of these lenders has started to even out the playing field when it comes to market share. The Richmond Group will no doubt continue to upgrade their product to stay ahead of the game and it helps them that they have managed to build up a loyal following. They have also attained the current top Trustpilot ranking that shows that their service has being received incredibly well.
Pricing (Compare Guarantor Loans):
The current leading charges have been added below that were discussed further in this Past Submission. We always look for the charge on a £1000 loan and the market leader came in at £236.72. This shows that there isn’t too much variation between the top companies involved. It should be noted that the discussed prices do not include any broker fees that would be commonly added if you were referred from a partner. The Duo and TFS prices were estimated. With Duo their calculator starts from 13 months and so we split their 24 month cost. With TFS, their terms start from 24 months and so we did the same. These costs qualified below since you can simply repay early with each of them. This is the niche to go for if you are looking for the best possible subprime value.
1) Everyday Loans (Duo) = £195.91
2) GuarantorUs Loans = £216.21
3) TFS Loans = £219.70
4) UK Credit = £228.44
5) LendFair = £228.68
Primary Product Benefits:
Being able to receive a competitively priced loan with bad credit is a notable quality. If we take the example of Amigo, they are for instance fine with CCJs and defaults. They will also consider discharged bankruptcy cases. They can freely do this since the reliance is forced on the person backing the application who can stand in should a repayment problem occur. More product flexibility is also presented in comparison to the 12 Month Option. You can also take out a few thousand pounds with terms over a few years that helps to spread out manageable repayments. Some companies report activity to the CRAs that helps the customer to get back on track.
Primary Product Limitations:
The main limitation is the requirement on finding someone to back the application. This can be a close friend, family member or work colleague. Some people won’t be happy to involve third parties. The introduction of non homeowner backings has helped to make it easier to find someone though. Another minor point is that no such company opens on a Sunday and the Saturday hours are usually limited.
The applicant will need to a UK resident aged at 18 or above and be in full time employment. A credit check is processed, but this is just to check that the applicant is not actively bankrupt or on an IVA. CCJs and defaults aren’t an issue, so long as the client is in a firm position to meet the repayments. Much of the emphasis is placed on the guarantor who needs to have a good credit score. The age brackets vary, but between 18 and 75 is one such example. A homeowner is not required with select companies.
Guarantor Lenders List 2014:
Whilst the number of competing firms has been climbing, the total number still remains on the low side. We have composed 3 groups all composed alphabetically. Group A covers the homeowner lenders, Group B caters tenant backings and Group C covers product variations. These are highlighted further through the notes. The ~ Closed ~ section marks FLM Quick and the pair of companies closed by UK Credit.
Group A (H):
Group B (T):
Group C (Var):
~ Closed ~
*1st Stop offers several financial products. This is their Guarantor option (we introduced their Personal Loans package in their post).
*Everyday Loans Duo is discussed above, but their introduction post also covers their standard product.
*MyMate offers a backing to those that fail the credit check. This is just a backup feature.
*The Quick Cash Club is a niche offering with smaller available sums than usual. The company was created to work similar to FLM Quick that was closed down some time ago.
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