Guarantor My Loan review

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.

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• One simple form to compare lenders
• Good or bad credit histories considered
• Including Santander, HSBC and M&S Bank

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What is a guarantor loan?

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.

What is peer-to-peer lending?

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.

Guarantor My Loan at a glance

• Low rate… high fee. Guarantor My Loan charges a hefty service fee which is bundled in with your loan. It’s a percentage of your loan, so the more you borrow the greater your fee. Always check the total amount repayable before agreeing to your loan and bear in mind that while paying back your loan early may save you money in interest, the full fee may still be payable, so you might not save as much as you’d thought.
• An “unsecured” loan. Your loan is not secured against an asset such as your car or home (or that of your guarantor), though you may find it easier to get approved if your guarantor is a homeowner.
• Backed by your guarantor. Your loan will need to be guaranteed by a friend or relative who will commit to stepping in should you fail to repay your loan.
• Cashback incentive. Unusually, if you make your first 12 repayments in full and on time, your guarantor can claim cashback equivalent to one month’s repayment.
• Low credit scores considered. Guarantor My Loan says it will consider your application even if you have a low credit score, but your guarantor needs a good credit score.
• Late payment fee. If you fail to make a payment on time, you’ll be charged a one-off fee. You’ll also incur additional interest and damage your credit record.

Compare personal loans

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How much do you need to borrow?
£

4500

How long do you need to borrow for?

3

years

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Product	Finder Score	Total Payable	Monthly Repayment	Representative APR
HSBC Premier Personal Loan Finder Award	Finder score 8.9Great				Representative example: Borrow £10,000.00 over 3 years at a rate of 5.9% p.a. (fixed). Representative APR 5.9% and total payable £10,910.52 in monthly repayments of £303.07.	Check eligibilityView details Compare	loading Fetching your data...
M&S Bank Personal Loan	Finder score 6.8Standard				Representative example: Borrow £10,000.00 over 3 years at a rate of 6.0% p.a. (fixed). Representative APR 6.0% and total payable £10,925.64 in monthly repayments of £303.49.	Check eligibilityView details Compare	loading Fetching your data...
Santander Personal Loan Finder Award	Finder score 7.4Great				Representative example: Borrow £10,000.00 over 3 years at a rate of 6.0% p.a. (fixed). Representative APR 6.0% and total payable £10,925.64 in monthly repayments of £303.49.	Check eligibilityView details Compare	loading Fetching your data...
Novuna Personal Loan	Finder score 6.4Standard				Representative example: Borrow £10,000.00 over 3 years at a rate of 6.5% p.a. (fixed). Representative APR 6.5% and total payable £11,003.04 in monthly repayments of £305.64.	Check eligibilityView details Compare	loading Fetching your data...
John Lewis Finance Personal Loan	Finder score Not yet rated				Representative example: Borrow £10,000.00 over 3 years at a rate of 9.9% p.a. (fixed). Representative APR 9.9% and total payable £11,527.92 in monthly repayments of £320.22.	View details Compare	loading Fetching your data...

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Finder Score for unsecured loans

To make comparing even easier we came up with the Finder Score. Speed, features and flexibility across 60+ lenders are all weighted and scaled to produce a score out of 10. The higher the score the better the lender – simple.

Am I eligible for a Guarantor My Loan guarantor loan?

How can I apply?

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

How do I pay back my loan?

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 customer reviews

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.

Frequently asked questions

• Can I pay my loan off early?

  Yes, you can pay your loan off in part or in full at any time. Although there are no additional charges and you may save money in interest, don’t forget that there is a hefty fee that may still need to be paid in full.

• Why does Guarantor My Loan ask for my Internet banking details?

  This enables Guarantor My Loan to view up to 90 days of your bank account history, which helps to inform its decision on whether or not to lend to you. It will only lend an amount that you can comfortably afford to pay back, so it will use your bank statements to assess your income and outgoings each month. It is only permitted read-only access to your current account and cannot make any changes.

• Will Guarantor My Loan perform a credit check on me?

  Yes, Guarantor My Loan works with credit reference agencies to review your creditworthiness.

• What happens if I cannot afford my repayments?

  If this happens, Guarantor My Loan will contact you to find out what has happened and try to reach a solution with you. As a last resort, it will contact your guarantor to request that they make the repayment on your behalf.

• Is Guarantor My Loan safe?

  Guarantor My Loan is only ever granted read-only access to your bank details, so it’s only able to view your account and cannot change any details or set up standing orders.

• When will I receive my loan?

  Once you have completed your application, which takes a few minutes, Guarantor My Loan should get back to you within one hour during office hours to conduct background checks. On the same day, a decision on your application will be reached and, if successful, your money paid out.

Written by

Chris Lilly

Head of publishing

Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio

Chris's expertise

Chris has written 566 Finder guides across topics including:

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