A relatively new guarantor loans provider, Buddy Loans is making a name for itself as a friendly and professional loans company which is getting rave reviews from customers.
No paperwork to complete – Buddy Loans is 100% online
Buddy Loans aims for same-day pay-outs
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.
Late repayments can cause you serious money problems. See our debt help guides.
What is Buddy 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.
What is a guarantor loan?
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.
Key features of a Buddy Loans guarantor loan
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.
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 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.
Guarantor criteria
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’ll 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?
Apply online via the Buddy Loans website, selecting the amounts and terms you want to apply for.
Supply all the necessary information, you’ll need your address and employment details for this bit.
Choose and nominate a viable guarantor.
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.
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
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.
Once you have been approved for a Buddy Loan the money will be paid out within the hour into a UK bank account.
Yes, Buddy Loans won’t charge for early repayment, but the total amount you pay will still be the same.
No, Payments are fixed for the duration of the 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.
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.
Yes, Buddy Loans comes very highly rated on TrustPilot and are regulated by the Financial Conduct Authority.
Repayments are made via direct debit on a monthly basis. You can choose any day of the month to suit your needs.
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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.
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