The Ultimate Comparison of Guarantor Loans: Angel Loans vs. 1Plus1 Loans vs. Guarantor My Loan


In today’s competitive financial market, finding the best guarantor loan can be overwhelming, especially with numerous lenders and loan comparison sites vying for your attention. While comparison sites might appear to offer convenience, applying directly to lenders like Angel Loans, 1Plus1 Loans, and Guarantor My Loan often ensures better deals and a more transparent process. This article provides an in-depth comparison of these three direct lenders and explains why it’s best to avoid loan comparison sites when looking for guarantor loans.

What Are Guarantor Loans?

A guarantor loan is a type of personal loan where a third party, usually a family member or close friend, agrees to repay the loan if the borrower cannot. Guarantor loans offer a way for individuals with poor or no credit history to access financing that would otherwise be unavailable. Borrowers can secure loans with the help of a guarantor, who acts as a co-signer and guarantees that the loan will be repaid.

These loans have become popular for individuals who have been rejected by traditional high-street lenders, but it's crucial to choose the right lender to avoid unnecessary complications, hidden fees, or high interest rates. That’s why we’ll explore three direct lenders—Angel Loans, 1Plus1 Loans, and Guarantor My Loan—to help you make an informed decision.

Why You Should Avoid Loan Comparison Sites

Loan comparison sites may seem convenient at first, but they often come with disadvantages that outweigh their perceived benefits. Here’s why you should avoid loan comparison sites and apply directly to lenders instead:

  1. Hidden Fees: Many comparison sites receive commissions from lenders, which can lead to biased listings that aren’t truly the best option for you.
  2. Multiple Credit Checks: Comparison sites often pass your details to several lenders, resulting in multiple credit checks. This can negatively affect your credit score and complicate future credit applications.
  3. Outdated Information: The rates and terms displayed on comparison sites are not always up-to-date, and you might not get the loan terms that you initially saw on the website.
  4. Lack of Transparency: Comparison sites often don’t provide the full picture when it comes to fees and loan terms, which could leave you with hidden costs down the line.

By applying directly to lenders like Angel Loans, Guarantor My Loan, or 1Plus1 Loans, you can avoid these pitfalls and benefit from a more straightforward, transparent, and often more personalised loan application process.

Angel Loans Overview

About

At Angel Loans, we specialise in providing guarantor loans up to £10,000 with the support of your nominated guarantor. If you've been turned away by other high-street lenders due to poor credit, Angel Loans offers a fresh opportunity to secure financing. We allow you to nominate a guarantor who will co-sign your loan application, ensuring that both your credit score and your guarantor's financial standing are considered.

Angel Loans is a family-run, privately owned company serving a wide range of clients across the UK. With over 30 years of combined experience in the financial services industry, our senior management team is committed to offering flexible, responsible lending. We’re proud members of the Financial Conduct Authority (FCA), Consumer Credit Trade Association, and National Association of Pawnbrokers.

At Angel Loans, they value your privacy and security. The entire loan process, from application to approval, can be completed online in a seamless manner.

Loan Details:

  • Loan Amounts: £500 to £10,000
  • Representative APR: 63% (variable)
  • Loan Term: 12 to 60 months
  • Approval Time: 1 - 4 hours
  • Early Repayment: No penalties for paying off the loan early

Customer Reviews of Angel Loans

Borrowers have praised Angel Loans for their speedy approval process, excellent customer service, and transparent terms. Most customers appreciate how easy the application process is and the fact that they are kept informed at every stage of the loan application. The flexibility offered by Angel Loans and the absence of early repayment fees have also been highlighted as key advantages.

Pros:

  • Quick and easy online application
  • Transparent loan terms with no hidden fees
  • No penalties for early repayment
  • Fast approval and disbursement of funds

Cons:

  • Strict eligibility requirements for guarantors
  • Higher APR compared to traditional loans for individuals with excellent credit

FAQs for Angel Loans

Borrower Application FAQs

Can I apply if I have bad credit?
Yes, Angel Loans welcomes applications from people with poor credit histories. We assess each applicant based on affordability, and as long as you have a guarantor, your application can be considered.

What documents will I need to provide?
You’ll need a valid form of ID, proof of address, and bank statements for both yourself and your guarantor. These help us assess affordability and ensure we comply with regulatory requirements.

How long does it take to get my loan?
Once your guarantor has been approved, funds are typically released within 24 hours. The entire process can take as little as one or two working days.

Guarantor Application FAQs

What are the requirements for being a guarantor?
The guarantor must be aged between 21 and 75, have a strong credit history, and demonstrate the ability to afford the loan repayments if necessary.

Can I be a guarantor if I have a mortgage?
Yes, having a mortgage does not disqualify you from being a guarantor, as long as you meet the affordability criteria.

Will being a guarantor affect my credit score?
As long as the borrower makes all their payments on time, being a guarantor should not affect your credit score. However, missed payments could impact both the borrower’s and guarantor’s credit records.

Live Loans FAQs

Can I change my repayment date?
Yes, we can change your repayment date to better suit your financial situation. Just get in touch with our customer service team to arrange this.

Can I make extra payments?
Absolutely. Angel Loans allows you to make additional payments or settle your loan early without any penalties.

Guarantor My Loan Overview

About

Guarantor My Loan markets itself as an innovative peer-to-peer guarantor loan provider, offering a more affordable alternative to traditional lenders. Based in Norwich, the company has been operating since 2014, and its peer-to-peer lending model sets it apart from more conventional lenders like Angel Loans.

While this model allows individuals to lend their money to borrowers for a favourable return, it also comes with potential drawbacks. Peer-to-peer lending platforms can be riskier than traditional lending models because they are more susceptible to market fluctuations, which might impact the rates and terms offered to borrowers.

Though Guarantor My Loan is regulated by the FCA, borrowers should be cautious. The peer-to-peer nature of this platform means that borrowers may face inconsistent interest rates, and some customers have reported that they felt uncertain about the terms of their loan agreements.

Loan Details:

  • Loan Amounts: £1,000 to £10,000
  • Representative APR: 49.9% (variable)
  • Loan Term: 12 to 60 months
  • Approval Time: Same-day approval possible, subject to guarantor verification
  • Early Repayment: Allowed, but terms can be less flexible due to the peer-to-peer structure

Customer Reviews of Guarantor My Loan

While Guarantor My Loan has been praised for offering quick approvals and competitive rates for some borrowers, others have criticised the lack of transparency in the peer-to-peer lending process. Some customers have expressed frustration with the inconsistency of the rates they were offered and the less structured loan terms compared to traditional lenders like Angel Loans.

Pros:

  • Quick approval process with same-day funding
  • Regulated by the FCA
  • No hidden fees

Cons:

  • Inconsistent interest rates due to the peer-to-peer lending model
  • Limited transparency regarding loan terms
  • Higher APR than Angel Loans and traditional lenders

1Plus1 Loans Overview

About

Founded in 2013, 1Plus1 Loans was established to offer a solution to individuals with poor credit histories who were struggling to secure financing. Like Angel Loans, 1Plus1 Loans focuses on affordability over credit scores, but there are a few crucial differences.

While 1Plus1 Loans claims to offer affordable loans, their APR is significantly higher than other lenders  and their eligibility criteria for borrowers and guarantors are stricter. This can make it harder for borrowers to secure a loan, and customer reviews have highlighted concerns about the rigid repayment terms and higher costs associated with borrowing from 1Plus1 Loans.

Loan Details:

  • Loan Amounts: £500 to £10,000
  • Representative APR: 39.9% (variable)
  • Loan Term: 12 to 60 months
  • Approval Time: Same-day approval possible, depending on the guarantor’s credit history
  • Early Repayment: Permitted, but less flexibility in terms compared to Angel Loans

Customer Reviews of 1Plus1 Loans

1Plus1 Loans has received mixed feedback from customers. While some borrowers appreciate the quick application process, others have found the loan terms to be more restrictive.  Borrowers have also expressed concerns about the lack of flexibility in repayment plans and the difficulty in finding a guarantor who meets their stringent requirements.

Pros:

  • Fast approval and same-day funding
  • Competitive loan amounts
  • Tailored repayment plans

Cons:

  • High APR rates compared to Angel Loans
  • Strict guarantor requirements
  • Less flexible loan terms and repayment options

Direct Lenders vs. Loan Comparison Sites: Why Applying Direct Is Better

When it comes to choosing the right guarantor loan, it’s clear that applying directly to lenders like Angel Loans, Guarantor My Loan, or 1Plus1 Loans is the smartest choice. By avoiding comparison sites, you eliminate the risk of hidden fees, unnecessary credit checks, and potentially outdated information.

Applying directly ensures that you’re getting the most accurate loan terms and allows for better communication between you and the lender. In particular, Angel Loans offers more transparent, flexible, and affordable loan options than other peer-to-peer platforms or comparison sites.

FAQs

Can I apply if I have bad credit?

Yes, all three lenders—Angel Loans, Guarantor My Loan, and 1Plus1 Loans—are open to applications from individuals with poor credit. However, Angel Loans offers the most competitive terms for those with bad credit.

How fast can I get a loan?

Angel Loans and 1Plus1 Loans typically process loans within 24 to 48 hours, while Guarantor My Loan may offer same-day approval, depending on the guarantor’s verification.

Do I need a guarantor with excellent credit?

Yes, for all three lenders, the guarantor needs to have a solid credit history to improve your chances of approval.

Are there fees for early repayment?

Angel Loans and 1Plus1 Loans do not charge penalties for early repayment. Guarantor My Loan also allows early repayment, though its peer-to-peer nature may mean less flexibility in terms.

Can I make extra payments?

Yes, Angel Loans encourages borrowers to make extra payments or pay off the loan early to reduce the interest owed.

Will applying for a guarantor loan affect my credit?

Your credit score will be affected if you miss payments, but if the loan is paid on time, your credit score should not be negatively impacted.

Got more questions? Feel free to reach out, and we’ll help you get the answers you need. Call the Angel Loans sale steam on 0333 577 2000.

If you would like to see our legal contractual documents, these are available at www.angelloans.co.uk

Representative APR (Variable) Example:

If you borrow £1,000.00 over 18 months at a flat rate of 49.8% per annum [fixed], and with a representative 63.0% APR, you will make a total repayment of £1,439.27. The total charge for credit is £439.27.