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Representative example: Borrow £3,250 over 3 years at a rate of 41.16% p.a. (fixed). Representative APR 49.9% and total payable £5,714.67 in monthly repayments of £158.57.
Buddy Loans is a lender not a broker, so you won’t have to worry about hidden brokerage fees if you borrow direct from its website. On top of that, Buddy Loans has a five-star rating from the reviews platform TrustPilot.
A guarantor loan might be for you if you’re struggling to get finance from the regular lending streams.
The loan requires a close friend or relative (hence “Buddy”) to agree to make repayments should you be unable to do so. They’ll need to have good credit, which will reduce the risk to the lender. This can improve your odds of getting improved and may help you access better rates that you would alone. Unfortunately the rates on guarantor loans are always much higher than regular loans, but this can still be a better option that many bad-credit financing solutions such as payday loans or specialist loans for bad credit with no guarantor.
As long you make the payments on time, a guarantor loan can improve your credit score, which could make future borrowing cheaper.
| Loan type | Unsecured guarantor personal loan |
|---|---|
| Loan amounts | £1,000 to £10,000 |
| Loan terms | 1 year to 5 years |
| Loan rate type | Fixed |
| Product fee | 0% |
| Same day funding available | |
| Same day funding note | In most instances applications are approved within 24 hours, although it can be as quick the same day. |
| Instant decisions in most cases | |
| Overpay without penalty |
Buddy Loans states that it will usually give you a decision on your application within one hour if an application is made during its opening hours.
Buddy Loans operates on a policy of judging its customers and guarantors “as people” rather than by fulfilling set criteria. The main things that decide whether you are eligible for a Buddy loan is whether you can afford the repayments. Buddy Loans doesn’t expect you to have a fantastic credit score, but it will have a few key criteria for you guarantor to meet.
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