No fees, no charges; fair loans even with bad credit?

A loan with no fees, no charges and where you tailor the amount borrowed to the nearest £100 and with a term to suit you, so that you borrow exactly what you need and with a repayment you can afford. How fair is that?

But it gets fairer; if you repay larger amounts as you can afford them, or if you settle your loan early, there are absolutely no fees or interest penalties. You only pay interest for the days you borrow, which also means a rebate of contractual interest………….. now that is fair!

Oh, did we mention; no fees or charges – ever, not for missed payments, not for changing a DD, not for talking to us; NO fees ever!  And the interest rate is fixed, so even if interest rates go up, your loan repayments won’t. We will also consider any Guarantor; tenant or home-owner.

The place of fair loans  Guarantor loans APR 29.9% (advantage) APR 47.9% (standard)

Terms & Conditions apply.

Guarantor loans can be the cheapest type of loan if you have bad credit

When looking for a loan the first question must be; can I borrow from a mainstream lender (bank, building society or Hire Purchase specialist) at low, headline, rates of interest? If the answer is yes, then you don’t need alternative loan providers at all; they will be more expensive and you should approach your bank or building society.

Can I still get a loan even if I have a bad credit history or no credit record?

If, however, you have a poor or bad credit history or maybe you are young and have no credit record, then this route may simply not be available to you and you won’t be able to borrow from a bank. But you still want a loan for a purchase that will improve your life; a car, a wedding, a new smart TV or maybe to start a business?

The next step is to consider carefully where you might borrow those needed funds, your ability to make the repayments (affordability) and how spreading the loan over a period of smaller fixed payments might help your personal circumstances and help build or repair your credit history.

And then look at the real costs of borrowing, particularly any hidden fees or charges. APR is a good way to compare differing loans but may not always reflect hidden fees and costs. So where to go?

Payday loans

Payday loans (now called Short Term High Cost Credit); Typical sum borrowed £100 to £500. APR typically above 1,200 %. Loan for 1 or 2 months, but similar styled products can be longer, up to 6 months or more. Big drawback is you have to repay 100% of loan and interest in one go.

Pawn Broking

Pawnbroking; any amount can be borrowed, subject to jewelry or similar valuable assets being used as security. APR typically 96 %. Loans only last 6 months but can be extended. The problem is if you don’t have any valuable jewelry or goods to ‘pledge’.

Rent to own

Rent to own; generally a way to buy white goods and some brown goods on credit, eg fridges, TVs and some furniture items. The APR is typically 70 % but the goods and associated service/insurance agreements can make the goods more expensive to comparable goods on sale at the time of purchase. So you pay twice. Drawback is the overall cost and that the goods can be removed if you miss payments.

Logbook loans

Logbook loans. Does what is says on the tin. You get a loan effectively secured against your car (usually at pretty high interest rates and with the lender taking the V5) APR typically over 400% miss a payment or two and lose your car?

Guarantor loans

Guarantor loans. You can borrow small sums, from £500 up to larger amounts £10,000 or more, over longer periods, which makes for smaller, affordable, repayments. Also, good for consolidating other high cost loans even when you have a bad credit history. APR typically 30-50% (take advice on loan consolidation and only consider a guarantor loan where the overall interest charge is lower)

So, the only obvious downside to a Guarantor loan is that you need a Guarantor. Financially it makes sense to consider this option even where you may have to explain to a good friend or family member why you need the loan and why you need them to support you. It can also help you rebuild a poor credit rating, so if you need a loan, this may be your best and cheapest alternative.        read the blog!   See our FAQs

Why consolidating your debts can save you money

If, for whatever reason, you have a number of small, alternative and probably therefore high interest loans, consolidating to a single lower cost loan can reduce your regular payments and save real cash by reducing the interest you pay. But what if I have bad credit?  You can still reduce your loan repayments and interest paid by choosing a Guarantor loan.

How to do Debt Consolidation by applying for Guarantor Loans?

This works so that you can borrow at lower rates of interest based on the credit history of your Guarantor not your own. So, a friend or family member with a good to average credit history can, if willing, save you money and reduce your outgoings. Here’s an example to prove the point;-

How to Calculate Your Guarantor Loan?

You have a number of small loans, or rent to own assets that add up to nearly £4,000 of credit. Typically these may be costing something in the region of *£365 in payments each month, and on average, something like *£1,250 in interest each year (APR varying from 69.9% to 1,274%).

An Advantage29 loan for £4,000 over 3 years from Lendfair will cost £162.08 per month, with average annual interest of £611.63 (APR 29.9% Fixed) over it’s life. How much fairer is that!

Time to check out

*Bright house – £1,800 of goods repaying £23 per week for 156 weeks, APR 69.9%  and a £1,800 loan from 118118 repaying £142.65 per month for 24 months APR 99.9% and a loan of £400 from Mr Lender  repaying an average £123.38 per month for 6 months APR approx. 1,274%.   Total interest paid over 3 years £3,752 (annual average £1250.67)

Wonga has become the payday lending industry’s first major participant to receive a crucial licence from the City watchdog, paving the way for it to rebuild its business after two years of reputational disasters.

Sky News can reveal that Wonga was on Monday granted full authorisation by the Financial Conduct Authority (FCA), just weeks before an interim permission to operate was due to expire.


The granting of a licence comes as Wonga, the UK’s biggest payday lender, seeks to diversify its business away from the short-term lending model that made it a lightning rod for political and public anger over the sector’s rapid growth.


Neither the FCA nor Wonga had planned to make public statements about the regulator’s decision to authorise the company, but in response to an enquiry from Sky News, Andy Haste, Wonga’s chairman, said:


“FCA authorisation is an important milestone for Wonga as we continue to build a responsible business with a long-term future, putting customers and good governance at the heart of everything we do.”


“We have made progress against our commitment to deliver change and the FCA’s examination of the business has been rigorous and thorough.


“We support the work of the FCA and we will continue to work with them openly and constructively as a responsible participant in the financial services sector.”


The authorisation process has been a requirement since the City watchdog assumed responsibility for regulating thousands of consumer credit providers in 2014.


Wonga began trialling a 90-day loan late last year which allows customers greater flexibility to spread repayments over a longer period.


The product, which is being piloted for several months, was the first extension of the Wonga brand to be unveiled since the company announced that it had made a loss of more than £37m in 2014.


Its slump into the red followed a string of regulatory settlements, customer redress and restructuring costs triggered by the loss of more than 300 jobs.


Last year, it was forced by the FCA to pay more than £2.5m in compensation to 45,000 customers who were sent letters purporting to be from law firms but which in fact did not exist.


A near-£20m charge to cover the cost of compensation, as well as legal and administrative costs related to the issue, was taken in its annual results for 2014.


Once tipped to float in New York with a bumper valuation, Wonga faces an arduous return to profitability as it contends with the imposition of a limit on the amount that payday lenders can charge in interest.


The regulator has estimated that the vast majority of the roughly 400 payday lenders operating in Britain will go out of business following the introduction of a price cap on loan and repayment charges.


A YouGov poll published last week ranked Wonga second on the list of most-improved brands, behind the Co-operative Bank.


Wonga has overhauled its advertising in an attempt to reposition itself as a responsible lender, and removed its logo from the replica shirts of Newcastle United, the Premier League football team it sponsors.


A source close to the company said it had made significant efforts to improve its transparency and governance.


As published by Sky-News