Launched in Norwich in 2014, Guarantor My Loan aims to help borrowers who feel let down by banks and other traditional lenders which won’t lend to them because of a blemished or non-existent credit record.
A guarantor loan requires a friend or relative of the borrower to agree that they will pay back the loan should the borrower struggle to meet the repayments.
Although guarantor loans generally come with higher interest rates than traditional personal loans from mainstream banks, if you have bad credit, then applying with a guarantor could help you to access better rates than you might alone. This is all down to the level of risk that a lender believes it is taking on.
Peer-to-peer (P2P) platforms match investors looking for competitive rates of return with borrowers looking for cheaper loans. Peer-to-peer loans cut out the institutional middle man and the overheads of physical branches, allowing borrowers and lenders to interact and perform transactions directly.
While traditional lenders may rely more heavily on your credit score and other credentials to decide whether you are eligible for a loan, some P2P loan companies give lenders a chance to decide case by case whether they will lend their money.
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To apply for a Guarantor My Loan guarantor loan, you must:
Your guarantor must:
If you think that a Guarantor My Loan guarantor loan is the best option for you, both you and your guarantor will need to fill out an online application form. Guarantor My Loan states that you should receive a reply within 60 minutes (in office hours) of your completed application forms being received.
While applications for traditional personal loans might simply be put through an algorithm to get a “Yay” or “Nay”, with a guarantor loan, the lender (or in this case, the platform) will want to speak with both you and your guarantor over the phone to make sure it has all the correct details and to ask supporting questions. Guarantor My Loan will want to make sure that your guarantor understands the terms of the loan and can afford to repay the loan if required.
Once approved, the money will be sent to your guarantor’s bank account on the same day.
Guarantor My Loan also asks for your Internet banking login details. While this is not unheard of, it is becoming rarer. It will use visibility of your transactions to assess affordability but won’t have the ability to change any of your banking details or set up standing orders/direct debits.
Why some lenders ask for access to your Internet banking
You will usually make your repayments via direct debit. If a payment is not received, Guarantor My Loan will contact you to understand the reason behind the failed payment. If it cannot contact you, it may exercise its right to use a continuous payment authority (CPA) to collect the money from your bank account. It will only use your guarantor as a last resort.
GuarantorMyLoan has received positive reviews from customers, according to review site Trustpilot. It currently has a rating of 4.9 out of 5, based on more than 700 reviews (updated March 2023). Customers highlighted the simple and straightforward loan process and helpful service.
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