UK Credit scores 4.5 out of 5 based on 1,500 reviews on TrustPilot. This score puts UK Credit slightly lower down the rating spectrum than the typical guarantor loan lender.
We've chosen to show the key differences against the "typical" or "average" guarantor lender:
UK Credit's rates start at 29.9% for loans over £14,000. At a more typical loan size of £5,000 their rate is 39.9% which is the lowest available (only one lender can match this). This calculator uses our representative APR is 39.9% to help you estimate monthly repayments. Non-homeowner guarantor loan rates range between 39.9% and 54.9%.
Your actual APR will depend on: your loan amount, the lender you choose, if your guarantor owns their home, etc.
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Borrow £3,000 for 36 months. Representative 39.9% APR fixed. Monthly payment £144.16. Annual interest rate 34.05% fixed. Interest payable £2189.76. Total repayable £5,189.76.
UK Credit are one of the leading brands in the UK guarantor loan market. They have grown steadily since they started in 2010. For a few years they were one of just three lenders - the others being Amigo and TFS Loans. They are well respected and earn good reviews from borrowers.
Borrow £4,000 for 36 months. Representative 39.9% APR fixed. Monthly payment £178.80. Annual interest rate 34.05% fixed. Interest payable £2,436.80. Total repayable £6,436.80.
UK Credit also offer a guarantor loan where the guarantor is a non-homeowner. These loans are offered on the same APR% terms as the homeowner guarantor product.
UK Credit's solution to this conundrum is to have two different guarantor loan products - whereas the homeowner guarantor product offers up to £15,000 the non homeowner product is limited to £6,000. They share the same APR% at the same loan value. more information about non homeowner guarantors.
No, UK Credit's interest rate is fixed for the duration of the loan, which can be up to five years. This is good to know because it means you can budget with confidence. Even if general interest rates rise you won't suffer from any increase in you monthly repayments.
For their homeowner guarantor product the rate varies from 29.9% (loans >£14,000) to 54.9% (loans <£3,000). Although their non-homeowner guarantor product is limited to £6,000 it shares the same interest rates as the homeowner guarantor product. A different lender offers the lowest APR of 29.9% for loans over £10,000. If this is of interest then apply here.
Most borrowers make their monthly repayments using direct debit. But UK Credit also make provision for standing orders, bank transfers and indeed cheques. The amount you repay will be specified by UK Credit before you sign any agreement. You can estimate your repayments using our calculator (representative 39.9% APR) but don't forget that the UK Credit rates work on a sliding basis - you may pay a higher or lower rate than this depending on your loan amount. If your monthly payment fails then Buddy will always get in touch to help resolve the problem.
As with debt of any kind the first thing to do, if you are beginning to struggle with payments, is to contact UK Credit. They are duty bound to help look at alternative ways to ease your repayments and make them affordable. You do need to keep in mind though that you have signed an agreement with UK Credit. If they cannot contact you then they will contact your guarantor to help settle your account.
When the loan application is being assessed your credit file will be "soft searched" - this means no footprint is left. This is simply to ensure you are creditworthy and to check your identity. But once the agreement is signed and the borrower starts to make their monthly repayments you should hear nothing from UK Credit. However, if the borrower is struggling to make payments and then fails to keep in touch with UK Credit or defaults then you will be needed to step in. If you fail to help bring the loan up to date then this will be recorded on your credit file too.
Yes, you can make overpayments or pay off the entire loan early. When you make an overpayment (maximum 3x your monthly payment) it will reduce the duration of your loan and the amount of interest you pay in the long run. When you want to pay off the whole loan early you must first get a settlement figure. Paying off early could save you significant amounts of interest.
UK Credit are coy about how fast things will move following an application. They claim they have made the application as slick as is possible. Any delays in processing your application will be due to needing a phone conversation or copies of documentation. Equally if your guarantor is not accepted then there will be a delay while you find another. Once your loan is approved the money is transferred to your guarantor's account who then passes it to you. Money is paid via your guarantor as part of anti-fraud processes.
Well, UK Credit are one of many lenders now available. Our free enquiry service can instantly tell which of the many lenders we work with could lend to you in principle - and many of these other lenders have competitive offerings to UK Credit's. If you'd like to maximise your chances of a guarantor loan then use our enquiry service - no fees, and exactly the same deals as going direct!
Typically you need to find someone who knows you well enough for them to trust you - this is form of "trust-based" lending. So with this in mind your ideal guarantor is likely to be: Parents, Brothers & Sisters - Aunts & Uncles - Sons & Daughters - Grandparents - Boyfriend or Girlfriend - Work Colleagues & Friends. Typically lenders like UK Credit are not prepared to accept guarantors who are already financially linked to the borrower. For example if you have a spouse and own assets together (e.g. a house) or indeed have joint debts. Lenders may also reject guarantors if they have joint costs with you (e.g. you live together and share the payment of joint bills)..
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UK Credit Ltd is registered at St. Crispin's House, Duke Street, Norwich, NR3 1PD. Company registration number 06929807.
UK Credit is authorised and regulated by the Financial Conduct Authority with firm reference number 721556.
UK credit Ltd is registered with Information Commissioner, registration number Z2022318.
Written/Reviewed by: Marcel Le Gouais