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.

Applicant FAQs
Guarantor FAQs
What is a guarantor loan?

A guarantor loan is an unsecured personal loan, with the one difference being that the borrower is ‘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 defaults on their agreement.

Our lending decisions are not based solely on a credit score – we will also conduct affordability checks to ensure that repayments are manageable for both you and the borrower.

Whilst a guarantor shares joint liability for loan repayments, a guarantor loan is not the same as a joint loan. We will not contact a guarantor, so long as the borrower is making their monthly scheduled loan repayments. However, if the loan account falls into arrears, we will contact a guarantor to make them aware of the situation and give them the opportunity to make a voluntary payment, should they wish to. Once the account falls three payments into arrears (default), we will contact the guarantor to enforce the debt and demand payment.

Why do UK Credit loans require a guarantor?

Providing a guarantor means that we can offer a loan to borrowers who might otherwise struggle to get credit. If the borrower has a poor credit history or hasn’t got a credit history to speak of, UK Credit might be able to help provide them with a loan.

Guarantor loans can be tailored to the individual needs of our borrowers, in that they can select the loan amount and the loan term that suits them.

How do I make a complaint?

You can lodge your complaint by telephone, letter, email or fax, please see our contact page for details. We will make every effort to resolve your concerns over the phone. If we can resolve your complaint within three working days of receipt, we will consider the complaint closed. You will be sent written confirmation that your complaint has been closed.

If we are unable to resolve your complaint within three working days, please visit our complaints page for the process that we will follow.

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

It is a requirement for the guarantor to have a fair to good credit history. Without this, you might not be accepted as a guarantor.

However, if you have been bankrupt, in a Debt Management Plan (DMP) or an Individual Voluntary Agreement (IVA), within the last three years, you cannot be a Guarantor.

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?

You can be a relative, such as a parent or a sibling, a partner, a close friend, or a colleague.

These are the basic criteria that must be met, to act as a guarantor, on a UK Credit loan.

  • You must have a fair/good credit history.
  • You must be aged between 21 and 70 at the start of the loan term and be able to afford the repayments if required.

Due to differences in Scottish law, both you and your borrower must either both reside in Scotland or both not.

If you are a Homeowner

  • you can be employed, self-employed or retired (providing you can prove income).
  • The maximum loan size available is £15,000, except for Northern Ireland where the maximum loan will be £7,500.

If you are a Non-Homeowner

  • you must be employed.
  • The maximum loan size available is £6,000.

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

I’m the applicant’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.

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 the responsibilities as Guarantor.

Are you a broker?

No. UK Credit Limited 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.

A fixed payment allows the borrower to budget in the comfort that the contractual monthly repayments will not change during the life of the loan.

What happens if I can’t pay?

If the loan falls into arrears and the borrower is unable to make up the shortfall, 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 anytime, should you wish, but if the account has defaulted, equivalent to three contractual repayments in arrears, a formal demand will be made for payment.  If either party can’t pay or 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 or Northern Ireland. 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 (homeowners only).

How will the loan be paid out?

The loan will be paid via bank transfer straight into your bank account, after which you can transfer the funds over to the borrower.

We do not charge a fee for the bank transfer.

Why does the money get paid into my bank account?

We do it 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?

We are open:
Monday to Friday – 8:00am – 8:00pm
Saturdays – 9:00am – 1:00pm
Sundays & Bank Holidays – Closed

How can I contact you?

General enquiries
Phone: 0800 032 1414 or 01603 828 828
Email: welcome@ukcredit.co.uk
Fax: 01603 302 337
Address:
UK Credit Ltd
Floor 1
Norfolk Tower
48-52 Surrey Street
Norwich
NR1 3PA

If the applicant uses a broker, do they get paid a commission?

All of our introducing brokers are paid a commission or a fee by UK Credit Limited. This is to cover their costs.

UK Credit brokers will not charge you a 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 rate 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 to see if you’re getting a good deal.

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 paid out; If you or the borrower change your mind, either can withdraw from the agreement. Simply let us know within 14 days (beginning the day after the day 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 and conditions are provided on 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 helpful way of supporting a friend, family member, loved one, or colleague – 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.

We’ll send you a link to follow which will ask you to complete some details about yourself. Once you have done this, we will run some electronic checks on yourself and the applicant. If you successfully pass these, 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.

We will then give you a call. This is so that we can double-check that you fully understand the role that you will play as guarantor and to ensure that you can afford to meet the loan repayments, should the need arise.

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 affect 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 companies. Even when the loan completes (pays out), we do not conduct a “hard” search against you as guarantor (only the Borrower).

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 non-payment continues, it may result in legal action against you. If a county court judgement (CCJ) is obtained against you, it will then be reported to the relevant Credit Reference Agencies, by the court, to be marked on your credit file, as appropriate. This could make obtaining credit more difficult in the future and more expensive for you.

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

If you are trying to make a payment and are unable login, please go to myloan.ukcredit.co.uk and click on the forgotten my password link. Please note once complete this may take 24 hours to reset.

Still having problems just call us on 01603 827 837

What is a guarantor loan?

A guarantor loan is an unsecured personal loan, with the one difference being that the borrower is ‘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 defaults on their agreement.

Our lending decisions are not based solely on a credit score – we will also conduct affordability checks to ensure that repayments are manageable for both you and your guarantor.

Whilst a guarantor shares joint liability for loan repayments, a guarantor loan is not the same as a joint loan. We will not contact a guarantor, so long as the borrower is making their monthly scheduled loan repayments. However, if the loan account falls into arrears, we will contact a guarantor to make them aware of the situation and give them the opportunity to make a voluntary payment, should they wish to. Once the account falls three payments into arrears (default), we will contact the guarantor to enforce the debt and demand payment.

Why do I need a guarantor?

Providing a guarantor means that we can offer a loan to borrowers who might otherwise struggle to get credit.

If the borrower has a poor credit history or hasn’t got a credit history to speak of, UK Credit might be able to help provide a loan.

Guarantor loans can be tailored to the individual needs of our borrowers, in that they can select the loan amount and the loan term that suits them.

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

Unfortunately not. UK Credit is a guarantor lender and all of our customers are required to find a guarantor before we are able to issue a loan.

Fortunately, we can accept friends, family members, colleagues, or partners as a guarantor, so long as they 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 lodge your complaint by telephone, letter, email or fax, 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. You will be issued with written confirmation that your complaint has been closed.

If we are unable to resolve your complaint within three working days, please visit our complaints page for the process we will follow.

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

Even if you have had some problems in the past, we may be able to help.

However, if you have recently been declared bankrupt, are currently in a Debt Management Plan (DMP) or Individual Voluntary Agreement (IVA), we will not be able to help you.

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 can be a relative, such as a parent or a sibling, a partner, a close friend, or a colleague.

These are the basic criteria that must be met, to act as a guarantor, on a UK Credit loan. Your proposed guarantor:

  • Must have a fair/good credit history.
  • Must be aged between 21 and 70 at the start of the loan term and be able to afford the repayments if required.

Due to differences in Scottish law, both you and your guarantor must either both reside in Scotland or both not.

If your proposed Guarantor is a Homeowner

  • They can be employed, self-employed or retired (providing they can prove income).
  • The maximum loan size available to you is £15,000, except for Northern Ireland where the maximum loan will be £7,500.

If your proposed Guarantor is a Non-Homeowner

  • They must be employed.
  • The maximum loan size available to you is £6,000.

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 make sure 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 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?

We have made the process of applying for a loan with us as quick, simple, and convenient as possible.

Using our loan calculator, you can tailor the loan to your individual needs and specifications. Simply choose the amount that you want to borrow and the length of time you want it to pay it back over. You will notice that altering the borrowing amount and repayment period of your loan will alter your monthly repayments.

Once you are happy, continue to the next stage of the application, where you and your guarantor will be asked to fill in the application form to complete the application.

Prior to issuing your loan, we will need to have a chat with both you and your guarantor. Additionally, you may be asked to send us some documentation for verification purposes – the sooner that this happens, the quicker that we can get the money to you.

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 Limited 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.

A fixed payment allows you to budget in the comfort that your contractual monthly repayments will not change during the life of the loan.

What happens if I can’t pay?

If you are struggling financially, please get in touch with us as soon as you realise that you might be in financial trouble. We understand that sometimes life doesn’t go to plan and we will try to work with you to resolve the situation.

If the loan falls into arrears and you are unable to make up the shortfall, we will ask the guarantor to step in. If either party can’t pay or 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 through 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 or Northern Ireland. 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 (homeowners only).

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 do it to ensure that the guarantor is 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 amount 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 have to pay back in total.

If you delay your repayment date, you will incur additional interest, this can be significant (depending upon when during 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.

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, of course.

Missing payments will negatively affect your credit history, as UK Credit is obliged to report the conduct of your loan to Credit Reference Agencies, such as 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 ring us to make repayment.

Can I pay off other debts with this loan?

Yes. You may be able to reduce your monthly outgoings and make your finances much 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 particular 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.

To make additional payments, just give us a call us on 01603 828828. 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 or through your bank.

How fast can I get the money?

There are a number of factors that affect the time it takes to pay out a loan and it varies greatly from customer to customer. Rest assured we’ll work as hard as we can to pay out loans as quickly as possible.

Your loan application may slow down in the following instances:
We need to speak to you and/or your guarantor but cannot get hold of you
We need something from you like proof of income or proof of residency (these can be sent by email or text message)

You applied during a bank holiday, a weekend or a particularly busy period.

The biggest reason for delays is because we can’t 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 want to settle your loan balance, just get in touch with us and we will calculate a loan settlement figure for you.

Settling the loan early could dramatically cut the amount that you will need to repay in the long-run.

However, if you choose to settle the loan early, an early settlement charge will be applied – which is equivalent to approximately two months 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 buy a car, pay for a wedding, or finance a DIY project, we are happy to 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 for home improvements or a car, or some other unexpected expense, we may be able to offer you the option to top-up your loan via a further advance.

So long as you kept up with your repayments and subject to affordability checks, you could boost your loan up to a maximum of £15,000 if your guarantor is a homeowner, or £6,000 if your guarantor is not. As an existing customer, you may also be eligible for a lower rate of interest too.

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

What are your opening hours?

We are open:
Monday to Friday – 8:00am – 8:00pm
Saturdays – 9:00am – 1:00pm
Sundays & Bank Holidays – Closed

How can I contact you?

General enquiries

Phone: 0800 032 1414 or 01603 828 828
Email: welcome@ukcredit.co.uk
Fax: 01603 302 337
Address:
UK Credit Ltd
Floor 1
Norfolk Tower
48-52 Surrey Street
Norwich
NR1 3PA

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

All of our introducing brokers are paid a commission or a fee by UK Credit Limited. This is to cover their costs.

UK Credit brokers will not charge you a 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 rate and any additional fees if there are any. The amount is shown as a percentage of the loan amount.

Comparing the APRs of is a useful way of comparing similar loans to see if you’re getting a good deal.

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 between 18 – 70 (at the start of the loan).

Do I need to be employed?

You can be employed, self-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 paid out; If the guarantor or the borrower change their mind, either can withdraw from the agreement. Simply let us know within 14 days (beginning the day after the day 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 on 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 24 hours to reset.

Still having problems just call us on 01603 827 837.