Buddy Loans is a relatively new lending company which offers guarantor loans. They are a private lender so you won’t have to give any money to a broker. Because they are private and not affiliated with a bank, they don’t have to abide by these rules so they can be more flexible with the customer’s applications when getting a loan.
It is considerably new and has rave reviews from customers who love the service with their friendly interactions and professionalism. They have a fixed interest rate of 41.6%, and the representative is dependent on the individual.
How Much Can I Borrow?
You can borrow anywhere between £1,000 to £10,000 for anywhere between 12 to 60 months. They are short term loans that you can pay off quickly so aren’t committed to a loan for a very long time.
Good Credit Or Bad Credit
It is beneficial for those who have bad credit or no credit. They look at each individual’s application separately so you won’t have to worry about not having high enough credit score. With their guarantor loans, you can have someone vouch for your ability to repay the loan, and you can get one easily.
They understand today’s economy is troubled and sometimes you need help just to get by Buddy Loans aims to help you through that with their short-term guarantor loans.
They are regulated and authorised by the financial conduct authority which means the loan you are receiving is legal and safe. It is a personal loan for you and repayment in a time period that is more feasible for you.
What Are Guarantor Loans?
A guarantor is a person that can endorse or certify that you will be able to pay back your loan if it is given to you. And in a case that you are not able to pay it back, they will be willing to do it on your behalf. This persona is chosen by the customer and is usually a family member but can be a friend, a close relative, or a work colleague.
It is better to talk to your guarantor about your application, so they know the details and they understand what they are supporting you in.
You don’t need to discuss your financial circumstances in detail, but they should know what’s going on and are not left completely in the dark but having the information will put them in a position where they are better able to help you out.
Your guarantor will be checked the same way as you are to make sure they are financially stable to support you. This includes background checks and credit history. If you’re unable to make a payment, they may be liable to do so.
They will be informed about any missed payments and try to make an agreement, but if an agreement cannot be made, then the guarantor would be held responsible for making the payment and bringing the account up to date.
The first call made to the guarantor will be in support. They will ask for help to get ahold of the customer, and if they get caught up again to the payments, then there is no problem.
Your guarantor should also be able to provide the same information you are and should be forthcoming and transparent with their part of the application as well.
Note: If you are unable to make the payments, the credit score will affect both you and your guarantor.
How To Apply
To apply for the loan, you must fill out an online application which is a simple and fast 5 step process.
In the first step, you will have to fill out your loan details these include the amount of loan you want, the time period you want it for and the purpose of your loan, this can be debt consolidation, wedding or even a holiday.
You also get to choose which day of the month you want your repayments to be. You can set this date along with your payday to make it easier for yourself, and you don’t have worry the dates, and they can coincide with when you have the money available.
When you fill out these details, you also get a small detail box with the interest rate and APR based on what options you select.
Step 2 in the application is personal details; here you will provide them with your full name and date of birth as it is on your id card.
Step 3 is contact details which would include your phone numbers and tour email address. Double check to make sure these are correct as they might have to get in touch with you to confirm your details.
Step 4 in the application is your address, and step 5 is your employment details. Your address should be a place you currently live in and have been for a couple of months, and your employment details entail your type of job, how frequent you get paid and what your actual income is.
With that, you are done, and you submit your application so it can be reviewed. You will then receive a call from a loan expert from Buddy Loans who will further discuss your options and guide you through the rest of the process.
If you are applying for a guarantor loan, you will have to give your guarantor’s contact info as well. They will also call them, and since they are flexible, they will do it at a time that is most convenient to you. After the company’s checks and balances are complete and your loan has been approved, you will be scheduled to receive the money.
If you had applied for debt consolidation loan, they would pay off your creditors depending on the situation or the money will be transferred to your guarantor and they can then pass it over to you.
The repayments will then be made from the following month on the day that you select; this day can also be changed anytime in the future for your utmost convenience.
The repayments will be collected via direct debit from your account on that day. So you will have no worry about remembering to give those payments.
Eligibilities For Your Guarantor
- It will greatly improve if they are a homeowner, but even if they are not, they just need a credit rating that is not extremely poor.
- They must be between 18 to 80 years old. So they should be an adult.
- They should have a valid UK debit card and account. The money will be first transferred to their account, so they need to have an account in use.
- They will have to prove they have a steady income or are financially secure enough that they will be able to pay the repayments if you are unable to do so.
- They should have an income of no less than £1000 although this could increase with a higher loan amount. This ensures that you are financially secure.
- The monthly payment amount is fixed so you have to pay the same amount every month without having to worry about any extra money or charges. There will be no surprise of extra cash in your bill every month.
- Buddy loan gives a quick decision in whether your loan is accepted or not. This way you don’t have to wait ages only to get rejected. You will get your answer within minutes if you are applying within working hours.
- Fast money transfer. After your application has been processed, the money could be transferred to your guarantors account on the same day within 24 hours.
- No settlement fees. Buddy loan does not charge you if you decide you want to make a partial payment or fully settle the entire loan.
- If you don’t miss your payments, and make them on time, you could actually improve your credit rating overall.
- They give loans to people with bad credit or no credit history making it easier for anyone to acquire a loan and pay it back in an affordable way.
- Although the settlement has no extra charge, you will still be paying the interest charged on the money as per your agreement.
- If you miss a repayment, or cannot pay them back, the credit rating will hurt both you as well as your guarantor. This will greatly affect whether you are able to get a loan again and in turn, you are reducing your guarantors’ chances.
What are the interest rates on guarantor loans?
The interest rates are still higher than a standard bank because there is a risk factor involved. They can be around 40 to 50%. Although they higher than some they are still lower than most of the lenders giving 1500% to 2000% interest for the loans.
Who can be my buddy or guarantor?
Your buddy can be anyone you trust and someone you will be able to handle the responsibility of it. An ideal guarantor would be your parents, aunts or uncles, your daughter or son, siblings or your significant other. It cannot be a stranger you have just met or someone you don’t know.
Does a guarantor loan require a credit check?
Yes, they do conduct credit checks for all types of loans, but they do consider your personal circumstances and your application will mainly be processed based on if you are able to repay that loan.
After the loan has been taken they make regular updates to credit reference agencies about the process of your repayments, so if you continue to make them on time, the credit score could improve over time. However, if the payments are not made regularly the credit score could deteriorate.
How can I contact Buddy Loans?
If you have any issues regarding your application or after your loan has been approved, you can contact them on 0800 802 1061. You can also write an enquiry on their website, and they will get back to you quickly or email them at [email protected] Their office timings are:
MON – THU: 9.00 am – 7.00 pm
FRI: 9.00 am – 4.30 pm
SAT: 10.00 am – 2.00 pm
And if you call them during these timings, they will be able to help you out immediately.
Buddy Loans highly rated on many popular sites with great customer reviews. They offer a great deal with a minimum APR of 49.8% and max of 49.9% which is much better than its competitors.
They also have great customer service, and they can be contacted anytime for any queries or assistance. They are friendly and are much more likely to help you out. You also don’t have the hassle of any paperwork or going to their office to get anything approved their entire process is online and can be done from the comfort of your home.
They also have quick access to the loan and longer repayment plans up to 60 months so you can decide ok your budget and easily pay back the loan. There are also no charges for the application or any type of fees for early settlements.
They also give great flexibility in terms of your loan where you can choose the date when you want to pay back the loan you took, and if you are not satisfied with it, you can change the date whenever you want to make it more suitable to your needs.
Buddy Loans are the best option for someone with bad credit or mo history who isn’t cannot get a loan from a traditional bank.
With their competitive rates and easy payment plan, they are beating the competition. Their guarantor loans also allow for an easy way to get those loans, and you don’t have to worry about any minute details since everything is clearly stated and not designed to confuse the customer.