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.

APR may not be the best guide to the true cost of borrowing; avoid hidden fees and charges with a Lendfair Guarantor loan.

Let’s be fair, APR is probably the only way to make a sensible comparison between different loans, but it may not show the complete picture or true cost of borrowing especially if your chosen loan comes with hidden costs or fees, eg a change of DD fee or a change of payment date or bank fee; missing a payment charge; the list with some loans is endless and these costs, because they are not predictable are not part of the APR.

So, look only to compare loans with no fees or charges, or if you pick a loan with fees and charges because of a stated low APR, make sure you stick to the loan agreement, especially the specified repayments and avoid “chargeable” changes. In any event, it is always best to maintain regular payments and stick to the terms of any loan; but we know there may be a wobble along the way and some lenders cash in on this; Lendfair won’t.

You should also be aware that if an APR is quoted as variable, if interest rates go up, so may your loan repayments and the APR. So, look for loans that show fixed rates of interest where you are protected from interest rate rises.    No fees, no charges – ever!     Fixed interest rates – always!

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

Your chance to Win £1,000 tax free Simply vote for Lendfair in the Moneyfacts Consumer Awards 2017

Yes Lendfair have been shortlisted for the Moneyfacts consumer awards 2017 in the category, “Best non mainstream loan provider” of 2017.

And you can win £1,000 by taking part and voting for Lendfair.

Moneyfacts comment that; “Lendfair were shortlisted based on their product range and technical strengths”. The consumer survey (and your chance to win £1,000) represents 50% of the weighting for the best in category. The University of East Anglia (UEA) were commissioned to independently verify the consumer survey and process of the consumer awards.

So if you want to vote for Lendfair and have a chance of winning £1,000, tax free, then simply click on the link below, follow the survey instructions and vote for Lendfair!

Vote for Lendfair here

But hurry the survey closes on Friday 18th November.

Good luck! And thanks for voting for us…………….

From all of The LendFair team.

Terms & Conditions of survey and derails of the prize draw can be found on the