Buddy Loans guarantor loans

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.

Borrow up to £10,000 within 24 hours with a guarantor

If a limited credit record is holding you back from the money you need, a guarantor loan can be a great option – allowing you to borrow money while building your credit score.

• Amigo loans will not judge you based on your credit score
• Loans of £500-£10,000 over 1-5 years
• Loans normally paid out within 24hrs of the guarantor being accepted

Representative example: Borrow £5,000.00 over 3 years at a rate of 49.9% p.a. (fixed). Representative APR 49.9% and total payable £8,782.92 in monthly repayments of £243.97.

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What is a guarantor loan?

A guarantor loan might be for you if you are struggling to get finance from the regular lending streams. The loan requires a close friend or relative to agree to make repayments should you be unable to do so. By using their (better) credit rating, they can secure your loan, and as long you make the payments on time, this can even improve your credit rating for next time. The rates on these loans are always much higher than regular loans, but this can still be a better option that many bad-credit financing solutions such as pay-day loans or short-term loans.

Key features of a Buddy Loans guarantor loan

• Borrow from 12 to 60 months.
• Borrow from £1,000 to £7,500.
• Fixed monthly repayments. Payments are fixed for the duration of the loan, so you don’t have to worry about any nasty surprises.
• Quick decision. Buddy Loans will usually be decided within the hour if an application is made during opening hours.
• Quick access to funds. The time it takes for a decision to be made and for the funds to be paid into your account could be as little as 24 hours.
• Get a loan for any purpose. Guarantor loans are often less strict about the uses of the loan than the regular lending streams.
• No set-up fees. Buddy Loans doesn’t charge any upfront fees when you take out a loan.
• Repay your loan early at any time. Buddy Loans won’t charge anything if you find you can pay off your loan early, although you will still be paying the full amount of interest on the agreed terms.

Am I eligible for a Buddy Loan guarantor loan?

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 make the repayments, which will be decided when you chat to one of the loan advisors.

For your guarantor:

• It helps if they are a homeowner, but anyone with a credit rating that isn’t poor will be considered.
• They must be between the ages of 18 and 80.
• Have a UK bank account with a valid debit card.
• They’ll need to be able to prove they can afford to repay the loan should you stop making payments.
• They will need to have an income of at least £1,000, but that amount will go up with any higher loan amounts.

How do I apply for a Buddy Loans guarantor loan?

1. Apply online via the Buddy Loans website, selecting the amounts and terms you want to apply for.
2. Supply all the necessary information, you’ll need your address and employment details for this bit.
3. Choose and nominate a viable guarantor.
4. You’ll receive a call from one of the Buddy Loans team who will ask you about your income streams and discuss whether you can afford your chosen loan. They’ll also want information about any problems with your current credit history.
5. If you’re approved you’ll receive a second call to talk through the payment, and you should get your loan within a few hours.

Frequently Asked Questions

• What is a guarantor?

  A guarantor is a family member or close friend who is willing to help you get a loan by agreeing to pay back any amount of the loan you can’t.

• How do I get the money from a guarantor loan?

  Once you have been approved for a Buddy Loan the money will be paid out within the hour into a UK bank account.

• Can I pay off a Buddy loan early?

  Yes, Buddy Loans won’t charge for early repayment, but the total amount you pay will still be the same.

• Will my payments go up if interest rates rise?

  No, Payments are fixed for the duration of the loan.

• What happens if I am having difficulties repaying my loan?

  You should contact Buddy Loans as soon as you suspect you might struggle with the repayments. If for whatever reason you find you cannot pay, Buddy Loans will contact your guarantor for payment.

• What happens if I miss a payment?

  Buddy Loans will contact you if a payment is missed and will ask to take a payment over the phone by credit or debit card. If you can’t do this, then they will contact your guarantor for payment.

• Is Buddy Loans safe?

  Yes, Buddy Loans comes very highly rated on TrustPilot and are regulated by the Financial Conduct Authority.

• How do I make repayments on a Buddy Loan?

  Repayments are made via direct debit on a monthly basis. You can choose any day of the month to suit your needs.

Chris Lilly

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Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.