Compare Guarantor Loans: Bad Credit Direct Lenders

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Compare Guarantor Loans
About: History

The history of suretyship can be traced back as far as 2750 BC. Surety simply means the guarantee of a debt of one party by another. James Benamor, who was likely inspired by the usage of guarantors for mortgages, took the concept and ran with it in the world of subprime lending. This was through FLM Loans that started up in 2005. FLM would in time take on the new identity of Amigo Loans in 2012. They have since become the dominant sector force across the years, but there hasn’t been a considerable level of competition, with under a dozen competing brands. This can be tied to Amigo’s dominance, limited level of consumer demand and recent closures.

It did look that Provident’s GLO project would become a major contender, but they struggled to compete and would soon close. Provident Financial appeared well suited since they had dominated doorstep lending, had been around since 1880 and had vast resources with the group turning over £1.2 billion. Provident has itself recently closed and mass compensation claims could well go on dethrone Amigo’s £200m+ empire! We’ll be exploring this topic soon. A savvy approach taken on by smaller firms has been to package both guarantor & unsecured loans. Both Bamboo and George Banco had succeeded in taking this approach. George Banco has for reference recently closed as has TrustTwo in also being part of Non-Standard Finance who have pulled their sector products.

About: Niche

People seeking large personal loans with bad credit either struggle to get accepted or are only considered with sky high interest rates. This is understandable since sums in the thousands are often being risked. A guarantor loan offers good middle ground where acceptance is high regardless of CCJs, defaults etc so long as the application can be backed by someone with a good borrowing history. Due to this backing the high interest rate is lowered to a more reasonable rate typically ranging between 40% and 50% APR. During the contract should there be any payment issues then the lender can legally seek repayment from the backer who becomes fully responsible to the debt.

Finding guarantors is usually the key obstacle that perhaps limits the potential sector growth. Competing lenders have at least made it easier to find someone in allowing tenants to back contracts. Some years back it was only homeowners that were accepted that meant that parents usually had to get involved. Product quality itself has improved greatly. No longer do you have to wait on forms via the post. Payouts are now possible on the same day thanks to e-sign. This assumes that the backer performs well on a credit search and is quickly contactable by phone. Sizeable loan sums of £10,000 have also become available and the industry norm 5 year max term helps to spread out those repayments.

Compare Guarantor Loans: Bad Credit Direct Lenders (Alexa Ranked)

Top Ranked

Brand + Alexa Rank
1) GuarantorMyLoan (Peer-2-Peer) | #1,157,125

GuarantorMyLoan Loans

/£1000 Price (12m)
£129.81 (+cashback) to £232.52

Borrow
£1000 to £10,000
Choices
12m to 60m
Opening Hours
Mon/Fri (9am-6pm)
Required Age
21 to 75 (H&T)
Brand + Alexa Rank
2) Amigo Loans | #1,204,043

Amigo Loans

/£1000 Price (12m)
£236.72

Borrow
£500 to £10,000
Choices
12m to 60m
Opening Hours
Mon/Thu (9am-7pm), Fri (9am-6pm), Sat (9am-1pm)
Required Age & Notes
18 to 75 (H&T). Pause on lending (covid)
Brand + Alexa Rank
3) Buddy Loans | #1,689,899

Buddy Loans

/£1000 Price (12m)
£237.36

Borrow
£1000 to £10,000
Choices
12m to 60m
Opening Hours
Mon/Thu (9am-5pm), Fri (9am-4pm), Sat (9am-1pm)
Required Age
18 to 80 (H&T)
Brand + Alexa Rank
4) Bamboo | #2,033,388

Bamboo Loans

/£1000 Price (12m)
£235.72

Borrow
£1000 to £8000
Choices
12m to 60m
Opening Hours
Mon/Fri (8am-8pm), Sat (9am-2pm)
Required Age & Notes
21 to 72 (H&T). Existing times differ
Brand + Alexa Rank
5) 1Plus1 Loans | #4,740,825

1Plus1 Loans

/£1000 Price (12m)
£233

Borrow
£1000 to £10,000
Choices
12m to 60m
Opening Hours
Mon/Fri (9am-6pm)
Required Age
18 to 75 (H) & 21 to 75 (T)

Unranked (Alphabetically Sorted)

Brand
6-8) JL Money

JL Money Loans

/£1000 Price (12m)
£204.08

Borrow
£1000 to £10,000
Choices
1m to 24m
Opening Hours
Mon/Thu (9am-4pm)
Required Age & Notes
18+ (H&T). Personal product also available
Brand
6-8) TFS Loans

TFS Loans

/£1000 Price (12m)
£317.36

Borrow (+Homeowners)
£1000 to £10,000 (£15,000)
Choices
12m to 60m
Opening Hours
Mon/Thu (9am-7pm), Fri (9am-5pm)
Required Age & Notes
18 to 78 (H). Pause on lending (covid)
Brand
6-8) UK Credit

UK Credit Loans

/£1000 Price (12m)
£228.32 (H) & £317.24 (T)

Borrow
£1000 to £6000 (T) or £10k (H)
Choices
12m to 60m
Opening Hours
Mon/Fri (8am-8pm), Sat (9am-1pm)
Required Age & Notes
21 to 70 (H&T). Pause on lending (covid)
END OF LISTINGS

Notes…

Alexa.com: Comparison listings are sorted by global traffic rankings. Those unranked are sorted alphabetically.

Amounts: Borrowing amounts displayed are complete ranges (across every term available).

Backings: In the note areas, the required age of guarantors is shown. In most cases, H&T is shown to abbreviate for homeowners and tenants.

Closures: Consollo, GLO, Hero Loans, Juo Loans, Masa Loans, Suco & The Quick Cash Club. More recent: George Banco, LendFair, TrustTwo & UK Trust Loans.

Examples: £1000 costs have been sampled over a year. Lenders usually allow £1k to be spread up to 3 years max.

Cheapest Guarantor Loan Prices 2021 (12 Months /£1000)

Best Prime Deal

No options

Subprime: Backed by Homeowners

1) GuarantorMyLoan (+Cashback): £129.81

2) JL Money: £204.08

3) UK Credit: £228.32

4) GuarantorMyLoan: £232.52

5) 1Plus1 Loans: £233

Subprime: Backed by Tenants

1) GuarantorMyLoan (+Cashback): £129.81

2) JL Money: £204.08

3) GuarantorMyLoan: £232.52

4) 1Plus1 Loans: £233

5) Bamboo: £235.72

Top Reviews 2021

Feefo.com (5* Percentage + Exact 5* Counts)

1) 1Plus1 Loans: 79.9% (448/561)

2) TFS Loans: 74.6% (558/748)

3) No 3rd listing

Reviews.co.uk (Percentage + Rounded Counts)

1) Amigo Loans: 53% (10+)

2-3) No listings

Trustpilot.com (Percentage + Rounded Counts)

1) Bamboo: 98% (20,440+)

2) George Banco: 94% (8000+)

3) Buddy Loans: 90% (3160+)

Recommended

GuarantorMyLoan Loans

Prime/Subprime: GuarantorMyLoan

GuarantorMyLoan (peer-to-peer) would be our top pick. This is based on their excellent cashback deal. For this saving, once a year of payments have been made on time you can claim for that final month worth as cashback. For a simple £1000 12 month loan, this means that you’d only pay £129.81. The standard price would be £232.52 (£1232.52 balance) that creates a final returned repayment of £102.71. Whilst this brand isn’t the most recognisable of the bunch, they’ve had an excellent year and have managed to hit the #1 traffic ranking in 2021. They’ve also took the decision to allow guarantors to be tenants rather than just homeowners as was previously the case.

Last Update: July 4th, 2021