ShareBack to blog
Last year, we helped Jessica, a 27-year-old admin assistant, borrow money to pay for her wedding and consolidate her credit card debt. Here’s the story of how she learned about guarantor loans from a direct lender.
Having been engaged for a couple of years, Jessica and Andrew were trying to get the money together to finally tie the knot.
But, even with them both working full-time jobs, saving up the deposit they needed for their wedding and paying off Jessica’s existing debt was proving a challenge.
That’s when Jessica started to think about borrowing some money. If she could borrow £5,000, they could pay for their wedding — they were only planning a small, quiet day — and then put the rest towards clearing off Jessica’s credit card debt.
Not only that but borrowing the money and paying it back on time each month would help Jessica repair her credit score so the couple are ready for future plans like buying their first home.
Jessica’s Credit Score Worries
While she was studying in her early twenties, Jessica built up a lot of credit card debt that she then struggled to pay off. As a result, with a credit report of missed payments and irresponsible money management — not to mention the outstanding balance of £1,700 left to pay — her credit score had taken a bit of a hit.
Because of this, she also wasn’t sure whether she would be eligible to borrow the money she needed on her own.
So, using a comparison site, she looked for a loan that suited her and noticed that if she could find a guarantor, the rate she was offered by the direct lender was better than her current credit card deal which meant she would be saving money.
That’s when she saw the perfect loan from Bamboo.
However, after years of hiding her credit card debt from everybody she knew, Jessica was a little uneasy and uncomfortable discussing money with anybody except her parents or Andrew.
However, she didn’t realise that her parents — or Andrew — could be her guarantor.
In fact, guarantor loans from a direct lender (like us!) only require somebody over the age of 21 with a regular income and that can afford to make your repayments should you not be able to. (Guarantors will also be subject to credit and affordability checks.)
Knowing this, Jessica felt much more confident about the situation and decided to chat to her parents and see if they’d be her guarantor for a Bamboo loan.
Unfortunately, Jessica’s parents had just remortgaged their house to pay for a new extension and wanted some time to get back on their financial feet. Plus, with retirement on the horizon and mortgage repayments, they didn’t feel ready to take on any added responsibilities.
So, Jessica decided to ask her partner, Andrew, instead.
Andrew didn’t have any unmanageable debts, had a good credit score and had just been promoted at work, leading to a pay rise which made him a perfect fit to be her guarantor.
On top of that, he wanted to help. While they didn’t qualify for a joint loan (because of Jessica’s credit score) through their bank, helping Jessica apply for a guarantor loan from a direct lender felt like they were going through the process together anyway.
They took a few minutes together the next morning, Jessica applied for a loan of £5,000 over 2 years from Bamboo with monthly repayments of £308.65, an APR of 49.7% and with Andrew as her guarantor.
And — great news! — she was provisionally accepted.
All that was left to do was wait for both of their credit checks to go through and for our team to give Andrew a call to check that he understood the responsibilities of being a guarantor.
Shortly after their application was submitted, we gave Andrew a quick call and ran him through the terms and conditions of being a guarantor and made sure that he understood all of the responsibilities involved. He did, of course, and was more than happy to be Jessica’s guarantor.
And, even better, they’d both passed all of their credit checks too.
Which meant that, mid-afternoon, Jessica’s phone pinged with an email from us that said:
Great news! You’ve been accepted to borrow £5,000! The money should be in your guarantors account by midnight tonight.
By choosing to research guarantor loans from a direct lender, Jessica and Andrew managed to book the venue for their wedding, pay off the last of Jessica’s credit card debt and — through making regular repayments on the loan — improve Jessica’s credit score.
A note from Team Bamboo:
All of the details included in this article are based on real-life situations faced by Bamboo customers, but for the sake of privacy and anonymity, we’ve created ‘Jessica’ and ‘Andrew’ to tell the story of customers who find themselves wondering about guarantor loans from direct lenders.
If you’d like to know more about guarantor loans from direct lenders, Bamboo Loans offer personalised loans that are tailored specifically to you and your circumstances, even if, like Jessica, you have a poor credit score or existing debt.
We can also show you exactly how much you could borrow and how much you’d have to repay each month.
To find out how much you can borrow without affecting your credit score, take our free eligibility calculator today.
- Author The Bamboo Team
- Posted 25 September 2019