FAQs

Our list of frequently asked questions, or FAQs, refers to the key questions which our customers most commonly ask us.
Should you have any questions about our Guarantor loans and the process by which you might apply for them, our FAQs should answer them.

Borrower FAQs
Guarantor FAQs
What is a Guarantor loan?

A Guarantor loan is an unsecured personal loan where the repayments are ‘guaranteed’ by another person – the Guarantor. The Guarantor guarantees the loan by acting as back-up to the Borrower, in that they will step in to repay the loan if the Borrower does not pay.

Our lending decisions are not based solely on a credit score – to make a more informed lending decision we will conduct affordability checks with both the Guarantor and the Borrower to ensure that repayments are manageable for both the Guarantor and the Borrower.

We will only contact the Guarantor if the Borrower breaches their loan agreement. We will make them aware of any arrears on the account and give them the opportunity to make a voluntary payment. Payment will only be demanded from the Guarantor should the account fall three or more payments into arrears.

Why do UK Credit loans require a Guarantor?

Having a Guarantor to support the loan allows us to lend to Borrowers who might otherwise struggle to get credit – such as those with thin or less than perfect credit history.

How do I make a complaint?
You can contact us with details of your complaint by telephone, post or email. Please see our contact page for details. We will make every effort to resolve your concerns over the telephone. If we are able to resolve your complaint within three working days of receipt, we will consider the complaint closed and provide you with written confirmation.
If we are unable to resolve your complaint within three working days, we will follow our process, as detailed on the complaints page.
I’ve had financial problems in the past, will this be a problem?

While UK Credit is able to accept Guarantors who do not have a perfect credit history, we will not be able to accept you as a Guarantor if you:

  • have had an outstanding bankruptcy within the last 3 years
  • are currently in a Debt Management Plan(DMP)
  • are currently in an Individual Voluntary Agreement (IVA) or have had an active IVA within the last year
  • are currently subject to a Trust Deed or have had an active Trust Deed within the last year
Is my home at risk of repossession?

No, the loan is unsecured. Your home is not at risk of repossession.

Who can be a Guarantor?

As Guarantor, you must have known the Borrower for at least 12 months and trust them. You can be a relative, such as a parent or a sibling, a partner, a close friend, or a colleague.

To act as a Guarantor on a UK Credit loan, these are the basic criteria that must be met:

  • must be a homeowner
  • have a fair/good credit history
  • be aged 25 or over at the start of the loan and under 70 at the end of the loan term
  • be able to afford the repayments if required to make them
  • be employed, retired or in receipt of certain benefits (providing you can prove your income)

For further information about who can act as a Guarantor, visit our Guarantor criteria page.

I’m the Borrower’s partner. Can I be their Guarantor?

Yes, we can accept a partner as a Guarantor. You will both need to prove that you can independently meet our criteria. This does not mean that the Guarantor loan will be a joint loan.

Do I need to speak English to be a Guarantor?

Yes, we need to speak with you over the phone in English and you need to be in a position to read the guarantee and indemnity agreement and supporting documents which are also in English, to make sure that you fully understand your responsibilities as Guarantor.

Are you a broker?

No. UK Credit is a direct lender.

Will the repayments increase during the term?

No, unlike some other lenders our interest rates are fixed, not variable. The monthly contractual repayment will not increase over the term of the loan, assuming they are all made in full and on time. If, however, the Borrower makes a change such as moving their payment date back, this will increase the total amount repayable. This would then require the Borrower to either increase their monthly repayments or make further payments at the end of the loan term.

What happens if the Borrower doesn’t pay?

If the loan falls into arrears and the Borrower is unable to make up the payments, we will contact you (as the Guarantor) to inform you of the situation. You can make a voluntary payment to bring the account up to date at any time, should you wish, but if the account is three or more payments in arrears, a formal demand will be made to you for payment.

If the Borrower enters into a DMP, IVA or Bankruptcy, however, we would look to you as Guarantor to make up the shortfall in the payments. You would be responsible for these until the Borrower is able to resume payments but could be for the remainder of the loan term.

If either party is unwilling to pay, then we may consider legal action, but only if we have exhausted all reasonable options available. In this instance, we may commence legal proceedings against one or both of you. All costs incurred by taking legal action will be added to the account. Continued non-payment may result in further action which could include a county court judgement (CCJ), or a decree if you reside in Scotland. This may harm your credit rating (making borrowing money more difficult and/or more expensive in the future). Further enforcement may be considered in the form of an attachment of earnings order/earnings arrestment order.

We may also consider a charging order/inhibition order on your property.

How will the loan be paid out?
The loan will be paid via bank transfer straight into your Guarantor’s bank account, after which they are required to transfer the funds over to you (the Borrower).
We do not charge a fee for the bank transfer.
Why does the money get paid into my bank account?

We pay the money into the Guarantor’s bank account to ensure that you are fully aware the loan has paid out. Secondly, we do this to protect our customers and ourselves against fraud.

What are your opening hours?
New Applications:
Monday to Friday 9 am – 6 pmExisting Customers:
Monday to Friday 8 am – 8 pm
Saturday 9 am – 1 pm

How can I contact you?
General enquiries
Phone: 0800 032 1414 or 01603 828 828
Email: welcome@ukcredit.co.ukAddress:
UK Credit
Norfolk Tower
48-52 Surrey Street
Norwich
NR1 3PA

If the Borrower uses a broker, do they get paid a commission?
All of our introducing brokers are paid a commission or a fee by UK Credit. This is to cover their costs. You can find details of any commission paid in the loan agreement
UK Credit brokers will not charge you a broker fee under any circumstances. If your broker has charged you a fee for finding you a loan, we would like to know – even if you don’t take the loan out.
What is APR?

APR stands for annual percentage rate, and it shows how much borrowing the money will cost over the course of a year. It includes the interest and any additional fees if there are any. The amount is shown as a percentage of the original loan amount. Comparing the APRs of different credit providers is a useful way of comparing similar loans.

Can I change my mind?

Yes. At any stage of the loan application process, you can change your mind, but you must let us know before the loan is completed.

If the Borrower changes their mind they can withdraw from the agreement within 14 days (beginning the day after the day we transferred the money to the Guarantor’s account). They will then need to return all of the funds advanced (the total amount borrowed) to us within 30 days of giving notice of withdrawal. This must be paid to us by cheque, bank transfer or debit card. Full terms and conditions are provided in the loan agreement.

I want to be a Guarantor/ I’ve been asked to be a Guarantor – what is the process?

The decision to become a Guarantor for a UK Credit loan is a way of supporting a friend or family without lending them the money yourself. However, being a Guarantor does carry responsibilities, so it is important to make sure that you are happy with how our loans work and the role that you will play. The Borrower will provide some of your details, we’ll then send you a link to confirm these and answer a few more questions. We may require some documents to verify the information you have given us, we’ll send you an SMS with information on what we need and how to send it to us. You will also be required to use our Open Banking platform to allow us to assess your financial situation. For more information visit our Open Banking page.

Both you and the Borrower will then have a call with one of our underwriters to assess the affordability of the loan. Once the loan has been accepted, you will be asked to sign the guarantee and indemnity agreement. Only sign this if you fully understand and are happy with the terms and conditions of the loan.

Once this has happened and all parties are happy, the funds will be paid by bank transfer direct to the Guarantor’s account. It will then be your responsibility to transfer the money into the Borrower’s account. Only do so if you are happy to be bound by the guarantee and indemnity agreement.

What responsibility do I have as a Guarantor?

Before you agree to be a Guarantor, it is really important that you fully understand what you are agreeing to and what could be required from you. Please visit Responsibilities of being a Guarantor for full details.

As Guarantor what effect does the loan have on me?

At the time the application is made, we only conduct a soft credit search against the Guarantor, which cannot be seen by other credit providers. Even when the loan completes (pays out), we do not conduct a “hard” search against you as Guarantor. Once the loan has paid out and funds have been transferred, we do not report the day to day conduct of the account against your credit file (i.e. if the monthly repayments are made on time), only against the Borrower’s.

If, due to continued missed payments, the loan defaults, it may result in legal action against you. If a county court judgment (CCJ) is obtained against you, it will then be reported by the court to the relevant Credit Reference Agencies and marked on your credit file, as appropriate. This could make obtaining future credit more difficult and more expensive for you.

You can prevent this situation arising by making sure the Borrower fully understands their commitment, makes their monthly repayments, and by stepping in to make payments if the Borrower is unable to.

What is a Guarantor loan?

A Guarantor loan is an unsecured personal loan where the payments are ‘guaranteed’ by another person – the Guarantor. The Guarantor guarantees the loan by acting as back-up to the Borrower, in that they will step in to repay the loan if the Borrower does not pay. Our lending decisions are not based solely on a credit score – to make a more informed lending decision we will also conduct affordability checks to ensure that repayments are manageable for both you and your Guarantor.

We will only contact the Guarantor if the Borrower breaches their loan agreement. If the loan falls into arrears, we will make the Guarantor aware of the situation and give them the opportunity to make a voluntary payment. If the account falls three payments or more into arrears, we will contact the Guarantor to demand payment, in accordance with the terms of the loan agreement.

Why do I need a Guarantor?

Having a Guarantor to support the loan allows us to lend to Borrowers who might otherwise struggle to get credit – such as those with thin or less than perfect credit history.

Can I get a loan with UK Credit without a Guarantor?

Unfortunately, not. UK Credit is a Guarantor lender and all customers are required to find a Guarantor before we can issue a loan. We can accept family members or partners as a Guarantor, provided they are a homeowner. They will also need to pass our affordability checks and meet our lending criteria. For further information, please refer to our Guarantor qualifying criteria.

How do I make a complaint?

You can contact us with details of your complaint by telephone, post or email. Please see our contact page for details. We will make every effort to resolve your concerns over the telephone. If we are able to resolve your complaint within three working days of receipt, we will consider the complaint closed and provide you with written confirmation.

If we are unable to resolve your complaint within three working days, we will follow the process as detailed on the complaints page.

I’ve had financial difficulties in the past, will this be a problem?

While UK Credit is able to help those who don’t have a perfect credit history, we won’t be able to help if you:

  • are currently bankrupt or have had an active bankruptcy within the last 3 years
  • are currently in a Debt Management Plan(DMP), or have been in one in the last year
  • are currently in an Individual Voluntary Agreement (IVA), or have been in one in the last year
  • are currently subject to a Trust Deed or have had an active Trust Deed within the last year
Is my home at risk of repossession?
No, the loan is unsecured. Your home is not at risk of repossession.
Who can be a Guarantor?

Your proposed loan Guarantor must have known you for at least 12 months. They can be a relative, such as a parent or a sibling, a partner, a close friend, or a colleague. You will find the basic criteria of who can be a Guarantor for a UK Credit loan below.

Your proposed Guarantor:

  • must be a homeowner
  • have a fair/good credit history
  • be aged 25 or over at the start of the loan and under 70 at the end of the loan term
  • be able to afford the repayments if required to make them
  • be employed, retired or in receipt of certain benefits (providing they can prove their income)

For further information about who can act as a Guarantor, visit our Guarantor criteria page.

Do I need to speak English to borrow from UK Credit?

Yes, we need to speak with you over the phone in English and you need to be in a position to read the credit agreement and supporting documents which are also in English, to ensure that you fully understand the contract you are entering into. We also need your Guarantor to speak and read English so that we can be sure they fully understand their responsibilities as Guarantor.

My Guarantor does not speak English, can they still be my Guarantor?

Unfortunately not. We need your Guarantor to speak English and read and understand the contractual documents which are written in English so that we can be sure they fully understand their responsibilities as Guarantor.

I want to apply for a loan – what is the process?

Using our loan calculator, you can choose the amount that you want to borrow and the length of time you want to pay it back over. You will notice that altering the amount borrowed or the repayment period of your loan will alter your monthly repayments. Once you are happy, continue to the next stage of the application, where you will be asked to fill in some details about yourself and your chosen Guarantor. We will then send your Guarantor a link to confirm their details and answer a few more questions.

We may ask you to send us some documents to verify the information you have given us, we’ll send you an SMS with information on what we need and how to send it over to us. Additionally, you will be required to use our Open Banking platform to allow us to assess your finances. For more information visit our Open Banking page.

Finally, both you and your Guarantor will have a call with one of our underwriters to assess the affordability of the loan. Once this has happened and all parties are happy, the funds will be paid by bank transfer direct to your Guarantor. It will then be your Guarantor’s responsibility to transfer the money into your account.

Can a Guarantor be my partner?

Yes, we can accept a partner as a Guarantor. You will both need to prove that you can independently meet our criteria. This does not mean that your Guarantor loan will be a ‘joint’ loan.

Are you a broker?

No. UK Credit is a direct lender.

Will the repayments increase during the term?

No, unlike many lenders our interest rates are fixed, not variable. Your monthly contractual repayment will not increase over the term of the loan.

What happens if I’m unable to pay?

If you are struggling financially, please get in touch with us as soon as you realise that you might be in financial difficulty. We understand that sometimes life does not go to plan and we will try to work with you to resolve the situation. If payments are missed, the loan falls into arrears and the Borrower is unable to pay we will notify the Guarantor as soon as possible.

At this stage, the Guarantor can make a payment on a voluntary basis but we cannot demand they make a payment unless the account is three or more payments in arrears. If either party is unwilling to pay, then we may consider legal action, but only if we have exhausted all reasonable options available. In this instance, we may commence legal proceedings against you, your Guarantor or both of you. All costs incurred by taking legal action will be added to the loan.

It is important to note that continued non-payment may result in further action which could include a county court judgment (CCJ), or a decree if you reside in Scotland. This may have an adverse impact upon your credit rating (making borrowing money more difficult and/or more expensive in the future). Further enforcement may be considered in the form of an attachment of earnings order/earnings arrestment order.

We may also consider a charging order/inhibition order on your property.

How will the loan be paid out?

The loan will be paid via bank transfer straight into your Guarantor’s bank account, after which they are required to transfer the funds over to you (the Borrower). We do not charge a fee for the bank transfer.

Why does the money get paid into the Guarantor’s bank account?
We pay the money into the Guarantor’s account to ensure that they are fully aware the loan has paid out. Secondly, we do this to protect our customers and ourselves against fraud.
Once the loan is set-up can I change my payment date?

Yes, however, restrictions apply to the number of times you can change your payment date during the term of your loan. It should be noted that changing your payment date may impact the amount that you must pay back in total.

If you delay your repayment date you will incur additional interest. This can be significant (depending upon how early in the life of the loan that you move it) and becomes payable at the end of the loan term unless you take action to reduce it. Please speak to us about how you can do this.

If you bring your repayment date forward, you will reduce the amount of interest you pay back in total (assuming you maintain all repayments on time). Your contractual monthly repayment will not change but you will pay the loan back quicker, as you will reduce the amount of interest charged. This will depend upon when, during the term of the loan, you change the repayment date. Please speak to us about how you can do this.

In simple terms, the quicker you pay off your loan, the less you will pay back in total.

If you would like to discuss changing your payment date and the potential implications, please call us on 01603 827 837.

Will taking out this loan affect my credit rating?

At the application stage, no.

With your consent, we will conduct a ‘soft’ credit search on you, which cannot be seen by other companies. We also carry out a soft credit search against the Guarantor when we obtain their consent. Once the loan has paid out, a “hard” search will be registered against the Borrower only. This search can be seen by other companies.
Once the loan has been set up and provided that you keep up with your monthly repayments, your credit rating could improve. This is subject to you also maintaining repayments on any other credit you may have.

Missing payments will negatively affect your credit history, as UK Credit is obliged to report the conduct of your loan to Credit Reference Agencies; TransUnion, Experian and Equifax.

How are the monthly payments taken?

Most of our customers make their monthly repayments by Direct Debit. However, you can also pay by standing order, bank transfer, debit card or cheque. Once the loan is set up, you can manage your account online or call us to make payments.

Can I pay off other debts with this loan?

Yes. You may be able to reduce your monthly outgoings and make your finances more manageable by using a Guarantor loan to pay off other debts. However, by consolidating existing shorter-term loans, you may be lengthening the time it takes to clear the debt. This could mean you pay more interest in total, although this would depend on your circumstances.

You may wish to take independent financial advice before consolidating other debts.

Can I make overpayments?

Yes. By making overpayments, you can reduce the term of the loan, and the total amount to be repaid in the long run. You can make an overpayment of up to three times your contractual monthly payment, without any penalty or charge. As we calculate interest daily, any overpayment will reduce the total amount repayable and shorten the loan term. The contractual monthly repayment does not change.

If you make an overpayment of more than three times your contractual monthly payment, additional charges will apply in most circumstances.

To make additional payments, just give us a call us on 01603 828 828. You can make a payment by debit card or by asking us to set up a direct debit for a higher amount. This can be done through the UK Credit online payment portal.

How long will it take to get the money?

There are several factors that affect the time it takes to pay out a loan and it varies greatly from customer to customer. The following factors may affect the time it takes to pay out a loan:

  • We need to speak to you and/or your Guarantor but cannot get hold of you
  • We need something from you such as proof of income or proof of residency
  • You applied during a bank holiday, a weekend, or a particularly busy period.

The biggest reason for delays is because we cannot get hold of you, so please make sure we have all your contact telephone numbers.

Do you charge any up-front fees?

No, absolutely not. UK Credit will not charge you any upfront fees to apply for your loan, and no fees will be added to your loan agreement. We choose our partners and brokers carefully to ensure that they share our passion for treating customers fairly and for providing excellent customer service. If a broker has charged you a fee to apply for one of our Guarantor loans, please let us know.

Can I pay the loan off early?

Yes. If you would like to settle your loan balance, just get in touch with us and we will calculate a loan settlement figure for you. Early settlement interest will be applied – which is equivalent to approximately two months’ of interest. This will be added to the remaining loan balance.

What can I use the loan for?

Your financial circumstances and needs are as unique as you are. Whether you need to borrow money so that you can replace your boiler, buy a new car, or finance a DIY project, we can lend you the money that you need for most purposes. However, there are a number of reasons we will not lend, for instance, we cannot offer you a loan for commercial purposes, such as setting up a business, or for investment or gambling purposes. We also do not lend for general living expenses.

Can I apply for a loan top-up?

Yes. If you are an existing customer and need some additional finance, we may be able to offer you the option to top-up your loan. Most customers become eligible once they have made their first 12 contractual monthly repayments in full and on time. As with new loans, top-ups are subject to an affordability assessment and meeting some initial criteria. You should consider your options and whether taking on further debt is the right thing for you.

If you would like more information on topping-up your loan, or to find out if you qualify, call us on 01603 828 721.

What are your opening hours?
New applications:
Monday to Friday – 9:00am – 6:00pmExisting Customers:
Monday to Friday – 8:00am – 8:00pm
Saturdays – 9:00am – 1:00pm

How can I contact you?
General enquiries
Phone: 0800 032 1414 or 01603 828 828
Email: welcome@ukcredit.co.ukAddress:
UK Credit
Norfolk Tower
48-52 Surrey Street
Norwich
NR1 3PA

If I use a broker, do they get paid a commission?

All our introducing brokers are paid a commission or a fee by UK Credit. This is to cover their costs. You will find details of any commission paid in your credit agreement.

UK Credit brokers will not charge you a broker fee under any circumstances. If your broker has charged you a fee for finding you a loan, we would like to know.

What is APR?

APR stands for annual percentage rate, and it shows how much borrowing the money will cost over the course of a year. It includes the interest and any additional fees if there are any. The amount is shown as a percentage of the loan amount. Comparing the APRs of different credit providers is a useful way of comparing similar loans.

How old do I need to be to apply for a Guarantor loan?

You can apply for a Guarantor loan with us, provided that you are aged 21 or over at the start of the loan and under 70 at the end of the loan term.

Do I need to be employed?

You will need to be employed, retired or on certain benefits. All applications are subject to affordability checks and assessed to ensure they meet our lending criteria.

Can I change my mind?

Yes. At any stage of the loan application process, you can change your mind. You will not incur any costs. Once the loan has been paid out, you can withdraw from the agreement by letting us know within 14 days (beginning the day after we transferred the money to the Guarantor’s account)

You will then need to return all of the funds advanced (the total amount borrowed) to us within 30 days of giving notice of withdrawal. This must be paid to us by cheque, bank transfer or debit card. Full terms & conditions are provided in the loan agreement.

I want to make a payment but have forgotten my password.

If you are trying to make a payment and unable to login, please go to myloan.ukcredit.co.uk and click on the forgotten my password link. Please note once complete this may take up to 24 hours to reset. Still having problems? Just call us on 01603 827 837.