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TrustTwo is a direct lender that says it prides itself on being there for people other lenders turn down. It does this by offering guarantor loans, and focusing more on whether or not the loan would be affordable for you, rather than on your credit score.
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What is a guarantor loan?
A guarantor loan is a type of unsecured loan that requires a co-signatory. This person might be a friend or relative. They agree that they will pay back the loan should you struggle to meet the loan repayments. This type of loan generally comes with a higher interest rate, as it represents greater risk to a lender, but it is available to people who wouldn’t be able to get finance through the regular lending streams.
Key features of TrustTwo personal loans at a glance
TrustTwo loans are “unsecured” meaning they are given based on your (or your guarantor’s) creditworthiness and are not secured by property or assets. Here are some of the other key features of TrustTwo loans:
If you’re approved for a TrustTwo loan, the interest rate that you’re offered will be subject to TrustTwo’s assessment your circumstances and also of your guarantor’s circumstances. It may differ from the advertised “Representative APR”.
APR and Representative APR explainedThe Annual Percentage Rate (APR) provides an annual summary of the cost of a specific loan, taking into account both interest and any mandatory charges (like an application fee) over the duration of a loan. Because TrustTwo doesn’t charge any fees, its advertised APR is the same as its interest rate.
All lenders must calculate the APR of their products in the same way, so it should be a handy tool for comparison, but unfortunately there’s a catch.
Most lenders tailor interest rates to the applicant – in other words, the riskier they think it would be to lend to you, the higher the interest rate they’ll offer you. The representative APR is the APR that a lender realistically expects 51% of its customers to pay. If your application for a TrustTwo loan is successful, it will make a specific loan offer to you – detailing the actual APR that you’ll receive.
TrustTwo loans, being guarantor loans, have relatively lenient eligibility criteria for the borrower, and fairly standard criteria for the guarantor.
- You must be over 18 years old
- You must be confident you can meet the loan repayments
- You must have someone who is prepared to be your guarantor
- You must have an income
- Your guarantor cannot be your spouse, but can be a close family member or friend.
- They must be aged between 21 and 75.
- They must have a good credit history.
- They must have separate finances to you.
- They can be a homeowner (with or without a mortgage), a tenant or living with their parents.
- They must agree and be able to make loan repayments if you don’t.
TrustTwo will consider almost anyone for a loan, but the credit history of the guarantor is important. It helps if they are a homeowner and have a good annual income. You will also be more likely to be accepted if they have no recent bankruptcies or convictions.
How can I apply?
Guarantor loans can take a little longer to organise that a traditional loan, because there’s a few extra hoops to jump through. TrustTwo does have a fairly streamlined online application process however:
The company states that it aims to pay out loans within three working days.
Frequently asked questions
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