LendFair (Lendfair.co.uk) are a new way of borrowing for those with poor credit history who need a helping hand. You can borrow between £500 and £5000 between 6 months and 60 months (5 years) for any purpose. You simply need to find a guarantor to agree to pay for you should you be unable to.
There’s no arrangement fee or early settlement fee, so if your financial situation should suddenly improve you can simply pay off your loan early to avoid paying any additional interest. The loan is available to anyone 18 or over with a UK bank account, and who has someone willing to be their guarantor. Guarantors must be homeowners under the age of 75.
Applicants don’t even need to be in full time employment, although they do need to have a stable income. Guarantors can include immediate family such as parents. Although the applicant won’t be credit checked the guarantor will be. Guarantors don’t necessarily need to be employed as their home is considered proof of income in most cases.
Applications are made online using an easy to use slider, and you can make a payment on an existing loan online using the PayPoint facility. PayPoint allows you to use a debt card to make your payment.
LendFair charges a 48% APR fixed rate which is a 39.8% interest rate. For instance if you needed to borrow £2500 for two years you would be paying back £152.75 per month and in total be paying back £3666. For those looking to borrow just £500 over six months, repayments of £93.28 per month would be due making the total repayable £559.68.
Before starting an application process with LendFair it’s important to talk to a guarantor and have them agree to guarantee your loan. Ensure they know what they are doing and agree to a credit check.
