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 basically an unsecured personal loan, with the one difference being that the borrower is ‘guaranteed’ by another person – the guarantor.

The guarantor effectively sponsors the loan by acting as back-up to the borrower, in that they will step in to repay the loan if the borrower can’t.

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 may make contact with a guarantor – this will normally happen after 48 hours of non-payment, although in some instances we will do so after 24 hours.

Why do I need a guarantor?

Providing a guarantor means that we can offer an unsecured loan with a number of benefits to borrowers who might otherwise struggle to get credit.

If you have a poor credit history or haven’t yet got a credit history to speak of, our guarantor loans are similar to high-street personal loans, in that they offer a number of a great benefits.

Guarantor loans are flexible and can be tailored to the individual needs of our borrowers, in that loans can be large or small, and be repaid over a short to long-term repayment period. Also, they are affordable in comparison to other higher-interest forms of credit.

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

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 criteria.

For further information, please refer to our Guarantor qualifying criteria in the FAQs below.

How do I make a complaint?

You can lodge your complaint by telephone, letter, email or fax, see our contact us page.

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 compliant within three working days, please visit our complaints page for the process.

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

It is a requirement for the Guarantor to have a good credit history, but for the borrower this is probably not an issue. We understand that many of our customers may have had problems in the past.

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

Is my home at risk?

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

Who can be a guarantor?

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

However there are basic criteria which your guarantor must meet to be eligible:

  • Your Guarantor must have a good / fair credit history.
  • They must be aged between 21 and 70 at the start of the loan term and can afford to make the repayments if required.
  • They can be employed, self-employed or retired (providing they can prove income)
  • Due to differences in Scottish law, both you and your guarantor must either both reside in Scotland, or both not.

Additionally, the residential status of your guarantor will also have an effect on a borrower’s loan eligibility:

  • If your guarantor is a homeowner, you will be able to apply for a loan of up to £10,000 at a lower rate of interest.

We will accept non-homeowners/ tenants as a guarantor too, unlike many other guarantor lenders. If your guarantor is a tenant, we will be able to offer you a loan of up to £6,000.

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 builder tool, 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 estimated monthly repayments.

Once you are happy, click the apply button and you’ll be taken to the next stage of the application, where you and your guarantor will be asked to fill in application form to complete the application.

Prior to issuing your loan, we will need to have a chat with both you and your guarantor, and 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 the guarantor. It will then be the guarantor’s responsibility to transfer the money into your account.

Can a guarantor be a partner?

Yes, we can accept a partner as a Guarantor.

This does not mean that your guarantor loan will be a ‘joint’ loan, however. Your partner will need to prove that they can independently meet our affordability criteria, in that they can afford to cover any joint/ household costs in their own right.

Are you a broker?

No. UK Credit Limited is a direct lender.

Will the repayments increase during the term?

No. Our interest rates are fixed, not variable. So long as monthly payments are kept up to date, loan repayments will not increase over the term of the loan.

A fixed payment allows you to budget in the comfort that your monthly repayments will not change.

What happens if I can’t pay?

If you are a borrower and you are struggling financially, please do 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 a borrower to resolve the situation.

If the loan falls into arrears and the borrower is unable to make up the shortfall, we will ask the guarantor to step in. If neither party is able to pay, then we may consider legal action, but only if we have exhausted any reasonable options available. In this instance we will instruct our solicitors to commence proceedings against you and your guarantor. All costs incurred through taking further action will be added to the account.

Non-payment may result in further action which could include a County Court Judgement (CCJ), impaired credit rating (which could make obtaining credit in the future difficult / more expensive) or a charging order on your property (homeowners only).

How will the loan be paid out?

The loan will be paid via bank transfer straight into the Guarantors bank account, after which they can then transfer the funds over to 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 for security purposes.

Firstly, 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, so long as the loan is not in arrears.

It should be noted that changing your payment date may impact the amount that you have to pay back in total. 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, please call us on 01603 828 828.

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 both the borrower and the Guarantor, which will not show up on your credit history.

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, and 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 more expensive, high-interest debt.

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 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.

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 the 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 / photo message on telephone)

• 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?

Our financial circumstances and needs are as unique as we are. Whether you need to borrow money so that you can buy a car, pay for a wedding, or finance a DIY project, for example, we are happy to lend you the money that you need, for virtually any purpose you see fit.

We cannot offer you a loan for commercial purposes, such as setting up a business, or for investment or gambling purposes.

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, you can boost your loan up to a maximum of £10,000. 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?

Monday 8:00am – 8:00pm

Tuesday 8:00am – 8:00pm

Wednesday 8:00am – 8:00pm

Thursday 8:00am – 8:00pm

Friday 8:00am – 8:00pm

Saturday 9:00am – 1:00pm

Sunday – 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

St Crispin’s House

Duke Street

Norwich

Norfolk

NR3 1PD

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

Almost all of our introducing brokers are paid a commission or a flat 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. However if you want to dispute a fee, you will need to speak to the broker directly about it.

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 different credit providers 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.

Does an applicant need to be employed?

An applicant can be employed, self-employed, retired or can claim certain benefits. All applications will be assessed on affordability.

Do I get a cooling off period?

Yes. If you or the Guarantor change your mind either of you can withdraw from the agreement. You need to let us know within 14 days (beginning the day after the day on which funds are released).

If you do withdraw you will have to pay us all of the credit advanced (the total amount borrowed) within 30 days of giving us 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.

What is a guarantor loan?

A guarantor loan is basically an unsecured personal loan, with the one difference being that the borrower is ‘guaranteed’ by another person – the guarantor.

The guarantor effectively sponsors the loan by acting as back-up to the borrower, in that they will step in to repay the loan if the borrower can’t.

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

Whilst a guarantor shares joint liability for loan repayments, a guarantor loan is not the same as a joint loan. We will never contact a guarantor so long as the borrower is making repayments. And even if the loan falls into arrears, we will only get in touch with a guarantor as a last resort.

Is my home at risk?

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

Who can be a guarantor?

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

However there are basic criteria which you must meet to be eligible:

  • You must have a good/fair credit history.
  • You must be aged between 21 and 70 at the start of the loan term and be able to afford to make repayments if required.
  • You can be employed, self-employed or retired (providing you can prove income)
  • Due to differences in Scottish law, both you and the applicant must either both reside in Scotland, or both not.

Additionally, your residential status will also have an effect on a borrower’s loan eligibility:

  • If you are a homeowner, the applicant will be able to apply for a loan of up to £10,000 at a lower rate of interest.
  • We will accept non-homeowners/ tenants as a guarantor too, unlike many other guarantor lenders. If you are a tenant, we will be able to offer the applicant a loan of up to £6,000.
How do I make a complaint?

You can lodge your complaint by telephone, letter, email or fax, see our contact us page.

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 compliant within three working days, please visit our complaints page for the process.

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

The decision to stand in as a guarantor for a UK Credit loan is a fantastic way of helping out a friend, family member, loved one, or colleague, without having to dip into your own bank balance.

However being a guarantor does carry certain responsibilities, so it is important to make sure that you are happy with how our loans work and the role that you will play.

Once the applicant has completed and signed their loan application, you will receive an email with a link to a guarantor loan agreement and application form. You will also find documentation attached to the email that you will need to review.

So long as you are happy, simply sign your copy of the loan agreement to progress to the final stage of the application. Before completing the loan application, we will need to conduct a ‘soft’ credit check – which will not show up on your credit file – and schedule a date and time to have a chat with you. 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 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 your account. It will then be your responsibility to transfer the money into the borrowers account.

Can an applicant's partner act as a guarantor?

Yes, we can accept a partner as a Guarantor.

This does not mean that the applicant’s guarantor loan will be a ‘joint’ loan, however. You will need to prove that you can independently meet our affordability criteria, in that you can afford to cover any joint/ household costs in your own right.

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.

As a loan guarantor, you may find yourself carrying responsibility for monthly loan repayments in the following instances:

  • If the Borrower fails to make their full repayment it will be your responsibility to pay on their behalf, this could be the full repayment or part of it. It could be one repayment or all of them until the Borrower is able to.
  • If the Borrower enters into an IVA, goes Bankrupt, or passes away, you as Guarantor will become solely responsible for each monthly repayment until the loan is paid off.

With these potential responsibilities in mind, it is important to consider the following questions before agreeing to be a Guarantor:

  • Do you know and trust the Borrower?
  • Do you think that they can afford the monthly repayments, and will they make repayments every month, on time, for the duration of the loan?
  • Can you afford the monthly repayments if the Borrower is unable to?

Prior to accepting the loan application, we will go through an assessment of your income and expenditure. Unlike other lenders, we believe that affordability checks are just as important as a credit check – we are a responsible lender and want to make sure that you can afford to cover monthly loan repayments, in the unlikely event that the borrower can’t. It goes without saying that if the borrower meets repayments each month for the duration of the loan, you will not hear from us at any stage.

As with any other legal or financial commitment, it might be worth seeking independent legal advice before agreeing to be Guarantor.

What affect does the loan have on the guarantor?

So long as the borrower makes their monthly repayments on time, every month, for the duration of the loan, the loan will have no effect on the Guarantor whatsoever.

Even if payments are missed on the part of the borrower, there will not be immediate consequences for the guarantor. We will attempt to speak to the borrower first and make arrangements to bring the loan out of arrears. It is only if we cannot contact the borrower or set-up a suitable repayment plan that we will contact the guarantor, as an act of last resort.

If non-repayment continues on the part of both borrower and guarantor and the account remains in arrears, then the loan will default. This will be reported to the Credit Reference Agencies against the Borrower and could make obtaining credit in the future more difficult.

If payment is still not forthcoming, further action could be taken, resulting in a County Court Judgement against the Borrower, the Guarantor, or both.

Are you a broker?

No. UK Credit Limited is a direct lender.

Will the repayments increase during the term?

No. Our interest rates are fixed, not variable. So long as monthly payments are kept up to date, loan repayments will not increase over the term of the loan.

A fixed payment allows you to budget in the comfort that your monthly repayments will not change.

How will the loan be paid out?

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

We charge no fee for the bank transfer.

Why does the money get paid into the Guarantor’s bank account?

We pay the money into your bank account for security purposes.

Firstly, we do it to ensure that you are fully aware the loan has paid out to the borrower. Secondly, we do this to protect our customers and ourselves against fraud.

Do you charge any up-front fees?

No, absolutely not. UK Credit will not charge you or the applicant any upfront fees to apply for a 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 the applicant or yourself wishes to settle the loan balance, just get in touch with us and we will calculate a loan settlement figure.

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

However if you or the applicant chooses 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.

I have forgotten/ lost my login details – what should I do?

If you are unable to login, the first step should be to try resetting your PIN from the reset PIN page.

Should you continue to have problems after this, please call us on 01603 828 828.

Can the applicant apply for a loan top-up?

Yes. So long as the applicant has had the loan for around 12 months and kept-up with their scheduled monthly repayments, we may be able to top-up their loan up to a maximum of £10,000.

We will not sanction a loan top-up without the permission of the guarantor first, however.

What are your opening hours?

Monday 8:00am – 8:00pm

Tuesday 8:00am – 8:00pm

Wednesday 8:00am – 8:00pm

Thursday 8:00am – 8:00pm

Friday 8:00am – 8:00pm

Saturday 09:00am – 1:00pm

Sunday – 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

St Crispin’s House

Duke Street

Norwich

Norfolk

NR3 1PD

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

Almost all of our introducing brokers are paid a commission or a flat 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 the applicant a loan, we would like to know – even if you don’t take the loan out. However if you want to dispute a fee, you will need to speak to the broker directly about it.

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 different credit providers is a useful way of comparing similar loans to see if you’re getting a good deal.

Do I get a cooling off period?

Yes. If you or the Applicant change your mind either of you can withdraw from the agreement. You need to let us know within 14 days (beginning the day after the day on which funds are released).

If you do withdraw you will have to pay us all of the credit advanced (the total amount borrowed) within 30 days of giving us 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.