Best Guarantor Loans: Direct Lenders Compared

*Skip to Comparison*

Last Update: June 9th, 2016

About:

The guarantor loans niche started small, but it has been gathering huge traction in recent years. This is a bad credit personal loan with the distinction that the borrower must find support for their application. Guarantors agree to take full responsibility to the debt should repayment difficulties occur. They must have a positive score and so it really isn’t likely to see accounts escalating to become defaulted. This enables the lender to offer market leading subprime rates (from 39.9% onwards). They can also take a punt on poor credit that is only seen elsewhere in the logbook space. Thousands of pounds can be obtained that can be typically spread over 5 years.

Dominance:

The innovation of this niche is owed to Amigo Loans (originally as FLM). Amigo continues to be the dominant player, but this doesn’t mean that they haven’t faced increasing challenges. As you will see in the comparison charts, they are beaten on price and some firms also offer higher levels of cash. It is however difficult to find fault in their service. They offer same day payouts, a secure login, you can save early and pay to that day and they have the highest rating on Review Centre and Trustpilot. They also consider tenants to back. Their experience counts a great deal and they have the added edge through nationwide TV ad campaigning.

Eligibility:

UK residents, 18 years old and currently working (self-employed is ok). Affordability is key, but all circumstances are considered that includes arrears and CCJs. Even discharged bankrupts can get the green light. The potential customer may be planning to consolidate debts and so such red marks isn’t a big deal. Profile scores are however important in the guarantors who support the application. Historically, they needed to be homeowners, but many lenders now accept tenants. This feature alone has really helped the growth of this sector since you can involve friends rather than just family members (not many friends may own a home). Credit checks are made for identify and to verify that the user is not currently bankrupt or on an IVA. Being discharged as noted is fine. LendFair is the single lender that doesn’t credit check applicants. If no checking is vital then you can find more variety in the logbook loan sector.

Market Size:

At this time we have covered 18 brands. If you browse through the listings below you will see that many of these launched in recent years. There was a time when we would see many new payday lenders launching, but more action is going on in this sector now. The simple reason for this is that the support of the guarantors means that the default risk is very low that equates to high profits. The level of competition is however fierce and these companies are competing for a limited number of potential leads. Amigo is at least helping to boost the popularity of this niche through their regular TV ad campaigning. As an alternative, you can find another dozen or so companies in the 12 Month Loan Comparison.

We Have Compared:
Cost (C): Total cost of a £1000 loan. We scored on 1 and 2 years (marked as 1 and 2)
Guarantor Requirements (G): The markings of (Homeowner = H and Tenants = T) shows what is accepted. This is followed by the catered age span
Login (L): Is a customer login facility provided?
Operations (O): Listed opening days and times
Sums (S): How much can be borrowed (New = N and Return = R)
Terms (T): The selectable repayments that are marked in months

Notes:
– Broker fees are charged by some lenders when you are referred by a partner. The prices below assume that you head directly to them.
– Guarantors need a good credit history. You should have a backing prepared before applying.
– Listings are sorted alphabetically.
– Logins usually allow access to your balance, statements etc. It is assumed that further contact would be needed for early settlements due to the high value of these products.
– Some lenders don’t offer a single year that is why 2 years was also sampled.

Best Guarantor Loans: Direct Lenders Compared:

1Plus1 Loans (2013)
1Plus1 Loans
C: £230 (1) £460.16 (2)
G: H. Below 75*
L: Yes
O: Mon/Fri (9am/6pm)
S: £500 to £5000
T: 12 to 60
* Starting age not stated

Amigo Loans (2012) (FLM Loans/2004)
Amigo Loans
C: £236.72 (1) £483.68 (2)
G: H and T*. 18 to 75
L: Yes
O: Mon/Thu (9am/7pm), Fri (9am/6pm), Sat (9am/1pm)
S: £500 to £7500 (N and R)
T: 12 to 60
* Must have an excellent score

Bamboo (2014)
Bamboo
C: £235.72 (1) £481.50 (2)
G: H and T. 21 to 72
L: Yes
O: Mon/Thu (8am/8.30pm), Fri/Sat (9am/5pm)
S: £1000 to £8000 (N and R)
T: 12 to 60
* Applications: Mon/Fri (8am/8pm), Sat (9am/2pm). Personal option available

Buddy Loans (2014)
Buddy Loans
C: £237.36 (1) £484.34 (2)
G: H. 18 to 75
L: No
O: Mon/Thu (9am/7.30pm), Fri (9am/4.30pm)
S: £1000 to £7500 (N and R)
T: 12 to 60

Consollo (2013)
Consollo
C: £226.64 (1) £462.08 (2)
G: H and T*. 21 to 75
L: No
O: Mon/Fri. Times unknown
S: £1000 to £7500
T: 12 to 60
* Tenant capped at £2500. Applicants must be 21+. Update: Not lending until 2016

George Banco (2013)
George Banco
C: £323 (1) £529.52 (2)
G: H and T. Above 25*
L: Yes
O: Mon/Fri (8am/5.30pm), Sat (10am/2pm)
S: £1000 to £7500 (N and R)
T: 12 to 60
* No upper age limit mentioned
* Personal loan option offered first at £373.64 (12) and £637.28 (24)

GLO (2014) (Tandem Loans/2013)
GLO
C: £233.48 (1) £480.32 (2)
G: H and T. 18 to 70
L: Yes*
O: Mon/Thu (9am/8pm), Fri (9am/7pm), Sat (9am/5pm)
S: £1000 to £7000 (N and R)
T: 12 to 60
* Logins for completing application only

Guarantor My Loan (2013)
Guarantor My Loan
C: £213.14 (1) £455.02 (2) | £232.52 (1) £474.80 (2)
G: H. 21 to 85
L: Yes
O: Mon/Fri (9am/6pm)
S: £1000 to £5000 (N and R)
T: 12 to 60
* Cashback prices shown first

Hero Loans (2014)
Hero Loans
C: £257.50 (1) £528.34 (2)
G: H. 25 to 65
L: No
O: Mon/Fri. Times unknown
S: £1000 to £5000 (N and R)
T: 12 to 60

JL Money (2004)
JL Money
C: (1/2)*
G: H and T. Above 18*
L: No
O: Mon/Fri (9.30am/5.30pm)
S: £100 to £2000 (N and R)
T: 3, 6 or 12
* Over a year you’d pay £900 for £1k
* The upper age limit is not mentioned

LendFair (2013)
LendFair
C: £228.68 (1) £466.40 (2)
G: H and T. 18 to 75
L: No
O: Mon/Fri (9am/6pm), Sat (10am/1pm)
S: £500 to £5000
T: 6 to 60
* No credit check taken

Masa Loans (2015)
Masa Loans
C: £323 (1) £529.52 (2)
G: H and T. Above 25*
L: No
O: Mon/Fri (9am/5.30pm), Sat (10am/4pm)
S: £1000 to £7500 (N and R)
T: 12 to 60
* No upper age limit mentioned
* Personal loan available at matched price of 49.7% APR

Suco (2015)
Suco
C: (1)* £475.04 (2)
G: H. 18 to 75
L: No
O: Mon/Thu (9am/7pm), Fri (9am/5pm)
S: £1000 to £12,000
T: 24 to 84
* Unable to estimate at 12

TFS Loans (2003)
TFS Loans
C: (1)* £475.04 (2)
G: H. 18 to 75
L: No
O: Mon/Thu (9am/7pm), Fri (9am/5pm)
S: £1000 to £12,000
T: 24 to 84
* Unable to estimate at 12

The Quick Cash Club (2012)
The Quick Cash Club
C: (1/2)*
G: H and T. Above 21*
L: Yes
O: Mon/Fri (9am/6pm)
S: £100 to £750 (N and R)
T: 6 to 24
* Over a year you’d pay £491.20 per £500 and so £1k would double as £982.40
* The upper age limit is not mentioned

TrustTwo (2014) (Duo/Unknown)
TrustTwo
C: NA* (1) £484.16 (2)
G: H and T. 25 to 74
L: Yes
O: Mon/Fri (9am/6pm), Sat (9am/12pm)
S: £1000 to £7500* (N and R)
T: 13 to 60
* Would need to settle early

UK Credit (2013) (GLO/2010)
UK Credit
C: £193.88 or £257.60* (1) | £392.48 or £528.56* (2)
G: H and T. 25 to 65
L: Yes
O: Mon/Thu (8am/8pm), Fri (8am/6pm), Sat (10am/1pm)
S: £1000 to £7500* (N and R)
T: 12 to 60
* Tenant examples. They are restricted to £3000

UK Trust Loans (2012)
UK Trust Loans
C: £236.78* (1) £483.80* (2)
G: H. 18 to 75
L: Yes
O: Mon/Fri. Times unknown
S: £1500 to £5000
T: 12 to 60
* £2000 was split as £1500 is the minimum sum

Comparison Insights:

Cheapest Guarantor Loans (/£1000 for 1 and 2 Years):
1) UK Credit: £193.88 & £392.48 (0.053% & 0.054%)
2) Guarantor My Loan: £213.14 & £455.02 (0.058% & 0.062%)
3) Consollo: £226.64 & £462.08 (0.062% & 0.063%)

Notes: Daily rates marked to 3DP. UK Credit’s noted prices are for homeowner backings. GML’s price factors cashback. In general, you pay around £230 over a year across the market.

Experience: Amigo

FLM arrived back in 2004. TFS did launch a year before in 2003, but it would be a few years down the road before they would specialise in this particular niche. Elsewhere there are quite a few 2013 and 2014 launches. There has even been a 2015 launch and more may follow. JL Money has recently been added who date back to 2004, but this is through their store. They only arrived online in 2014.

Flexibility: Suco and TFS

Across most firms the repayment span is 12 to 60 months and you can settle early. This range itself shows flexibility, but we are really looking for something a little extra. Both Suco and TFS (same owner) stretch to 7 years. LendFair starts from 6 months onwards, as does The Quick Cash Club. Across most firms it would be possible to settle after a few months if you wished to and so this is why the 7 year high stands out across the pack.

Loans on Sunday: Non

GLO did offer guarantor loans on Sundays, but this has now changed. They do however trade on Saturdays between 9am and 5pm that is rare in this space (most just open for a few hours). There is a big need for weekend coverage, as guarantors may be busy at work throughout the week and to arrange payout they must be contacted.

Payouts (24/7): Non

No companies offer 24/7 payouts or support. The next best thing is 7/7 trading that is where GLO again pops up.

Sums (Smallest): The Quick Cash Club

The Quick Cash Club starts from just £100 although they only stretch up to £750. This payday type service was modelled on FLM Quick.

Sums (Largest When New): Suco and TFS

All customers can access up to £12,000 that is much higher than their competitors. There was a time when £3000 was the most common accessible figure and then a few companies started offering £5000. In recent years, £7500 has been championed by some firms, but £12k is still away ahead of the pack.

Sums (Largest When Returning): Suco and TFS

As above. Any customer can access the top sum.

Update: Non Homeowner Guarantor Loans by Starting Age:

A) 18 Years Old:
Amigo Loans: 18/75
GLO: 18/70
JL Money: 18+
LendFair: 18/75

B) 21 Years Old:
Bamboo Finance: 21+
Consollo: 21/75 (temp closed)
The Quick Cash Club: 21+

C) 25 Years Old:
George Banco: 25+
Masa Loans: 25+
TrustTwo: 25/74
UK Credit: 25/65.