As a loan provider, we at Square 1 Loans have been asked pretty much every question there is about loans and loan products. Our staff are the best in the business and they can answer anything you throw at them. But before you do, have a read through our frequently asked questions to see if we have it covered here. These are the questions that come our way most often.
Please can I apply for a loan without a guarantor?
We have other loan options that do not require a guarantor such as a logbook loan where your vehicle acts as collateral. If you want to apply for a guarantor loan, however, you need a guarantor. Should you not be sure who to ask to be yours, consider a family member, perhaps your parents or a sibling?
What characteristics should my guarantor have?
Well, they should be between the ages of 18 to 70, own a home, and perhaps most importantly, have a good credit standing.
Ok, so my loan has been approved. How do the repayments work?
Well, here you have options. Repayments can be either weekly or monthly, depending on your preference. We suggest that you set up automatic payments that come off your account either at the end of the week or month. In this way, you won’t have to worry about making manual payments yourself, something that is very easy to forget and can have you defaulting on your loan.
Do the repayments stay the same?
Yes, any guarantor loan you sign for will have the same monthly payments as the interest rate charged on the loan is fixed. So even if interest rates rise, your repayments will stay the same for the length of your loan.
Can I pay the loan off early?
If you have some extra money, we suggest you pay it into the loan whenever you can. This will help you to pay the loan off early and save you cash on the interest. If you can afford to pay off the whole loan because you received a large amount of money (say an inheritance), you can do that as well. There are no penalty fees for paying your loan off early unlike many other lenders charge.
When my loan is approved can I get cash?
Although you are able to get the loan as a cash amount (for anything up to £5000), we really would suggest you rather have us pay the money into your account. This is far safer and will only take up to a maximum of 24 hours before it reflects on your account. We do the transaction straight away, but some banks will take a while before they clear the money.
What are the consequences of missing a payment?
Firstly, please try not to miss a payment. If you are struggling to make one for whatever reason, come to talk to one of our staff and we can try and help you in some way that month. If you do miss a payment, then there is a chance that penalties will be added to your account. If you miss multiple payments, we will then contact your guarantor for the money as they signed surety for you on the loan.
Can I cancel the loan?
If for any reason you decide to cancel the loan, you have 7 days in which to do so. Please inform us of your intentions to cancel and arranged to have the full amount of the loan paid back into our banking account. From there, you will need to complete some paperwork that both you and your guarantor must sign.
I am struggling to find a suitable guarantor. What is expected of them?
They will need to sign surety for the loan which means they will make payments on your behalf should you miss any. That is why it is important to find a suitable guarantor that will agree to do this. In all our dealings with these loans, we have found that family members make the best guarantors.
I am embarrassed to have to ask someone to be my guarantor. What type of information do they see regarding the loan?
As they are signing surety on your behalf, your guarantor has to be privy to a whole range of information. This includes the terms and conditions of the loan, the loan amount, the interest charged as well as all other fees and charges, if applicable.
Will the loan change the credit score of a guarantor?
No, it will not as long as you pay the monthly installments or they pay them if you make a default. In turn, if they default on their obligation to pay should you not be able to, it will affect their credit score in a negative way.
Can a guarantor pull out of the loan deal?
No, once everything is signed and the money paid into your account, the guarantor may not pull out of the loan deal unless you are still in the first week of the loan period. Much you like you can decide to scrap the loan within 7 days, so can your guarantor. The money must be paid back into our account in full and some documents signed if this does happen.