FAQs

Our loans are for the millions of people across the UK who can’t get help from their bank, due to their credit rating. There are many reasons why this may happen. If we can responsibly do so, we'll try to give customers the opportunity to rebuild their credit rating.

To apply for a RewardRate loan you’ll need to:

• be a UK resident
• be aged 21-65
• not be on an active bankruptcy, IVA, or equivalent or a Debt Management Plan
• have a minimum monthly income of £1,000. If your income is from employment, then you'll need to have been employed by the same employer for at least six months
• be able to make the loan repayments and pass our affordability checks

If you’re applying for a guarantor loan then you’ll need to have someone to back you up.

Our online application will guide you through each step. Here’s a summary of what to expect:

Tell us a bit about you, your finances and how much you earn. We’ll give you a quote if you’re eligible for one of our products. If you are eligible we’ll check that the loan suits your budget using a consents.online affordability check. We’ll also ask you to complete ID verification.

If you’re applying for a guarantor loan we’ll also ask them to complete a full application.

We offer loan terms between 2 to 5 years. You can choose a duration of 24, 30, 36, 42, 48 and 60 months to pay back your loan.

Our loans range between £2000 - £10,000. You can choose the duration of the loan to suit how much you can afford to pay back each month.

APR stands for ‘annual percentage rate’. It’s the cost of borrowing money. When a loan is advertised with a ‘representative APR’ it means that at least 51% of borrowers will receive a rate that’s the same as, or lower than that rate. The APR you’re quoted when looking for a loan depends on various things, like your credit score.

Not at all. We use something called a soft search, also known as a ‘quotation search’. This allows us to check your eligibility for a RewardRate loan and is designed to have no effect on your credit or credit score. Rest assured that you're the only person who'll be able to see your soft search (it won't be visible to other lenders).

Do you have a search mark on your credit file, but don’t know why? A soft search could show on your credit file for a few reasons; check out RewardRate’s privacy policy to better understand how we complete one of these, and what it might mean for you.

We’re partners with companies such as ClearScore and​​ Freedom Finance. If you’ve used them to help search for a loan, we may have soft searched you to see if you’re eligible for one of our products.

Yes. Taking on a loan can be a big commitment. It’s important that we consider your credit and financial situation when deciding whether to offer finance or not.

If you decide to go ahead with your application, we’ll complete a credit check (which is the same as a soft search). Try to take comfort in the fact that approval doesn't rest on you having an immaculate credit score.

As a responsible lender, one thing we look at is how you’ve managed your finances in the past. This helps us to understand whether taking on repayments for a new loan (from RewardRate) is the best thing for you right now.

Along with the credit search, we’ll run an affordability check using Consents.Online.

We’ll also carry out a soft search on your guarantor, if you need one.

Alongside your credit search we’ll run an identity check on you too. Check out our privacy policy for more information on how we do this.

Yes, you’ll need to have a minimum income of £1,000 (after tax) every month to be able to apply for a RewardRate loan.

Not always. If you’re retired and receiving a pension then you could still qualify for a RewardRate loan. If you’re employed, you must have worked consistently with the same employer for a minimum of 6 months at the time of applying.

Can I be self-employed?

Unfortunately we can't accept applications from anyone with a self-employed income.

Sure. We can accept benefits as an income source on your application, as long as it is not your only form of income. Your benefits can be included in your income amount, if at least half of your total income is from a wage or pension.

RewardRate loans don’t charge any upfront fees.

We sure are! Being a direct lender cuts out any ‘go-betweens’ who may charge extra for the service. Sometimes we get applications from brokers (who are paid by us for sending it through), but the customers who find us via a broker will never pay more for their loan.

RewardRate is a trading name of Amigo Loans Ltd, who are authorised and regulated by the Financial Conduct Authority (FCA). The FCA regulates the conduct of financial services firms in the UK, to ensure that the financial markets are honest, competitive and fair.

Both Loans

RewardRate's interest rate starts at 39.9% (representative APR). This could drop all the way down to 34.9% with our exciting RateDropper feature (if you make six repayments in a row, on time and in full).

How do I drop my rate?

With the RateDropper feature! By making six repayments in a row, on time and in full, you’ll unlock a new RewardRate milestone (this applies to both the guarantor and the personal loan). Unlocking milestones (reduced interest rates) is a rewarding way to reduce the amount you pay  back overall; it’s an earned benefit for paying on time and in full!

Starting APR is 39.9% APR

Milestone HIT 1 = RateDrop 1 to new APR of 37.4% 

Milestone HIT 2 = RateDrop 2 to new APR of 34.9%

To put it really simply: stay on track with your payments and you'll save money!

The amount of interest you pay will depend on:

• your interest rate; 
• the amount you borrow; 
• over how long you choose to repay the loan.

To get a better understanding of how much interest you may pay, you can use our loan calculator. You’ll be able to see what works best for you and your budget!

Something good to know is that our interest is capped. This means that you'll never pay any more interest than what is shown in your Credit Agreement when you take out the loan.

APR stands for Annual Percentage Rate. 

It’s important to understand your loan’s APR, as it tells you how much your borrowing will cost you over a year (as a percentage of the money borrowed).

The higher the APR, the more expensive it’ll be for you to borrow.

The lower the APR, the less expensive it’ll be for you to borrow.

What APR includes

APR includes the interest you’ll pay on your borrowing as well as compulsory fees you could incur, like application fees. RewardRate doesn’t charge application fees, but some other loan providers you might be shopping around with may. 

What APR doesn’t include is extra charges, like fees for late payments (RewardRate also doesn't charge late payment fees, while other loan providers often do). If you've requested an early settlement then we'll add interest onto your current balance to work out your early settlement figure. Check out our FAQ titled 'Can I settle my loan early?' if you're keen to know more about this.

What does ‘Representative’ APR mean?

When you see the word ‘Representative’ used before APR, this means that at least 51% of customers receive an interest rate that is the same as, or lower than, that APR. This rate isn’t guaranteed for everyone, but it’s a handy way to compare different loans from different places. The actual APR offered may depend on  your personal circumstances and credit checks, etc.

Lots of people find APR really confusing, so call us on 01202 084527 if you still have any questions.

Yes! If you've repaid your loan in full then you can make a new application with us, but you'll have to wait at least six months before applying again.

We'll need to check that you still meet our criteria to be accepted and that you can still afford the loan repayments, especially if you're applying for a higher amount.

Yes. Before we pay out a loan we’ll call for a quick chat with you (and if you’ve applied for a guarantor loan, we’ll call your guarantor too). This is to double check the information provided, or to ask for more information to ensure the loan is right for everyone involved.

We’ll be in touch as soon as possible, after receiving your completed application.

Debt consolidation is worth looking into if you have multiple debt repayments to cover each month. They can be really useful, but they aren't right for everyone. Our ‘Consolidating debt’ page can help you get your head around how these loans work.   If our affordability checks suggest that it could be a smart financial move for you, then you might be able to get a debt consolidation loan from RewardRate.

We’ll happily take a look at a fresh application if you make one. Bear in mind that you’ll need to wait for six months or more, before we can check your eligibility again. In the meantime, we recommend checking your credit report to see if there are ways you can improve your credit score. ClearScore and CreditKarma are both free and easy to use. Our blog is regularly updated with helpful guides and tips on all things finance too.

If you've sent your full application our way, rest assured we'll be in touch as soon as possible!

You can cancel your application at any time, just let one of our agents know on 01202084527 or email [email protected]. 

Customers have a 15 day cooling off period, after the loan has been paid out. This is in case you change your mind and want to return the money to us.

Guarantors can also remove themselves from an application (before pay-out) if they’re not feeling too sure about it.

It’s important that you read our FAQ titled, ‘What is the ‘cooling-off’ period?’ for full information on the above.

We work on the principle that ‘if it works for you, it works for us.’, 

We take a lot into account when we consider your application. This includes the information you’ve provided, your credit history and an assessment on whether you can comfortably afford the monthly repayments (we assess this by running an affordability check).  

We may decide that a RewardRate loan isn’t the best option for you if:

• your loan repayments don’t seem to be comfortably affordable;
• you don’t meet our lending criteria;
• your credit file shows that you have a high level of debt;
• We see evidence of excessive gambling or betting transactions.

If this sounds familiar then keep an eye on our RewardRate blog for resources that could help you to improve your prospects of qualifying for a loan in the future.

Once you’ve completed your application online we’ll carry out our final checks (dotting the i’s and crossing the t’s). We might then give you a call, to make sure you understand the details of the loan you’ve applied for.

Have you applied for a guarantor loan with us? If we are able to approve your chosen guarantor, we’ll give them a call to make sure they’re comfortable with their responsibilities.

In some cases we'll ask for additional documents in order to process your application. These may include:

• proof of address
• proof of income

We'll pay out the loan (to yourself or your guarantor, if you’re taking out a guarantor loan) as soon as we're happy with all of our checks and that that loan is right for you.

We only ask for copies of documents if we can't verify something about you online. If sending documents to us, we ask that the picture clearly displays the information requested. If the picture is unclear, we’ll have to ask you to send it again, which can slow the application process down.

The easiest way to send requested documents to us is via email. Simply attach a clear photo(s) in an email and send it to [email protected]. Please be sure to use the email address you used on your application.

To speed things up, we recommend including your name, application number and address when you email us.

RewardRate's affordability check is a quick and easy way of providing us with a read-only view of your bank statements. It's secure and only takes a few moments to process. This check helps us to understand your finances and to check that loan repayments are affordable for you.

We use Consents.Online (a trusted and regulated agency) for our affordability checking service. We recommend you visit the handy FAQs on their website if you have more questions about this.

The RewardRate affordability check works directly with your bank to ensure that private or sensitive information remains secure.

We can't see private information, make changes to your account or (most importantly) make or take payments via an affordability check.

RewardRate and Consents.Online make sure your data is safe by complying with the General Data Protection Regulation (GDPR) and other data protection laws. We recommend you visit the handy FAQs on Consents.Online’s website if you have more questions about this.

An affordability check shows us 396 days’ worth of financial information (similar to what can be seen on bank statements).

The information this pulls up will be placed into groups, like rent payments, bills and food costs. Through this we can also see your income and where it comes from. The affordability check can highlight spending behaviours that we should be aware of when making lending decisions, such as excessive gambling.

This all helps us to see a clear picture of your monthly spending, and allows us to figure out whether loan repayments will be comfortably affordable for you.

This data is really useful for us! What we see through your affordability check will help us to complete your affordability assessment. The whole point of this is to determine, using reliable information, whether we can responsibly lend you the money you have applied for. 

We’ll use your affordability check information to check things like: 

• whether you're receiving a regular income from work, a pension or benefits;
• if you're able to comfortably afford your loan repayments.

We care about your financial wellbeing. As a responsible lender, we do need to see the information that your affordability check gives us before making a decision to offer a loan. If not, then we unfortunately can’t progress your application.

When it comes to a RewardRate loan, if it works for you then it works for us. As part of the application process, we can determine whether this will be the case by pulling your information together. Everything we see in there helps us to decide whether our loan is going to be affordable for you.

We understand that consenting to an affordability check requires trust. RewardRate and Consents.Online (who we run this with) make sure your data is safe by complying with the General Data Protection Regulation (GDPR) and other data protection laws. We recommend you visit the handy FAQs on Consents.Online’s website if you have more questions about this.

When giving us what we need to run your affordability check, we kindly ask you to use your primary (main) account. This is usually the one that your income enters and bills leave from.

If you have other accounts too (like a specific ones for bills and other expenses) please also connect these accounts, so that we have an accurate view of your finances.

An electronic signature is an easy way of signing your loan agreement online, without the need for a pen and paper.

We will send your agreement to you by email and ask you to provide a DocuSign eSignature®. Please only sign the document if you’re happy with, and understand everything within the loan agreement. 

It is also important that you are aware that a DocuSign eSignature®holds the same legal weight as a 'wet ink' signature.

If the loan hasn’t been paid out then you aren’t ‘tied’ into anything. 

You can cancel your application (or remove yourself as guarantor) at no cost, before the loan has been paid out. You also have a 15 day cooling off period after the loan has been paid out, to change your mind and return the funds to us too. Please bear in mind that interest starts to accrue as soon as the money is paid out, which means you’ll have to pay back the amount you borrowed plus any additional interest applied to the balance.

For an explanation on how to settle early after the 15 day cooling off period then please read our FAQ, ‘Can I settle my loan early?'

It’s so important to make sure that you read and understand the agreement before you sign it. It’s your responsibility to be confident in everything within this, but do call 01202084527 or email [email protected] if you need us to explain anything that you’re unsure about.

If you’ve already selected the loan you want and consented to an affordability check, you will need to start a fresh application to change your loan amount or term. Please call us on 01202084527 or email [email protected] if you want to cancel your application and start another.

If your loan has already been paid out, we won’t be able to make changes to the terms. It's always worth triple checking that everything is as you want it to be, before going ahead with a loan. 

If you’ve received your funds but decided that the loan is no longer right for you, please get in contact with us as soon as possible to talk through your options. You can also check out our ‘What is the cooling-off period?” FAQ for more information. 

The best way to make sure an application goes through smoothly is to make sure that the details you provide are as accurate as possible. Please also ensure that any documents you send over are clear and include all of the information we have asked for. 

We'll get back to you as soon as we can with an update, or to ask for anything else we might need.

During the online application you’ll be asked to choose your first and future repayment dates.

Your repayment date can be changed at a later stage. Check out our FAQ "Can I change the original payment date" if this is something you'd like to do. If you do choose to do this, simply reach out to one of our agents on 01202084527, or email [email protected]

We recommend choosing a repayment day that comes shortly after the date on which you're paid.

By making six repayments in a row (and on time) you can reach a milestone that activates our fantastic RateDropper feature. When this happens the interest rate on your loan drops, which makes your monthly repayments smaller (giving you money back to treat yourself)! Each RewardRate loan contains a limited number of milestones that can be reached.

Want to get your head around the nitty-gritty of it? This is what unlocked milestones (interest rate drops) look like, with any loan term;

Starting APR is 39.9% APR

Milestone HIT 1 = RateDrop 1 to new APR of 37.4% 

Milestone HIT 2 = RateDrop 2 to new APR of 34.9%

Sit back and relax; we’ll automatically calculate what you’ll pay in total and what your new monthly repayment will be. Once you unlock a lower interest rate, it’ll never go back up.

If you’re unsure about your decision, having a thorough read of the information on our website, our terms and conditions and these FAQs are important. Please don’t commit to a RewardRate loan unless you feel positive about the decision, and you are in control of your finances. 

If you have an application that’s currently being processed and you want to cancel it, just give us a call on 01202084527.

If you're feeling wobbly about your decision then there are a few resources linked within this guarantor awareness blog that you might find useful.

As part of your online application, we ask for your debit card details and whether you consent to a repeat payment known as a Continuous Payment Authority (CPA). 

We may use a CPA to help get your account back on track if, for any reason, a payment is missed. We do this by automatically attempting payment from your card for the overdue payment, at different times. These being; four working days after your payment date and 13 working days after your payment date (if the account is still overdue).

If the account is multiple payments behind, we’ll only attempt your card for no more than one monthly repayment.  

You can withdraw the consent you gave to the CPA by getting in touch on 01202084527, or by emailing [email protected]. 

Our loans have a cooling-off (or ‘grace’) period of 15 days once the loan has been paid out.

If you change your mind about the loan simply tell us within  15 days of receiving the funds. The full amount, including any interest that has built up needs to be returned within 30 days. We won’t charge early settlement fees if you do. Once the loan has been returned, your account will be closed.

If for any reason you miss a payment, we’ll let you know (and your guarantor, if you have one). We will see what options are available to help you get back on track - and don’t worry, we never charge penalties for late payments.

If your monthly repayment is more than 14 days late we are required to report this to the Credit Bureaus. It’s incredibly important that you contact us if this is likely to happen, so we can work together to try and protect your credit file. 

There are a lot of positives to keeping on track with your repayments. One is that it could help to build your credit score. Another is that it puts you on a path to activating our RateDropper feature and unlocking lower interest rates!

If you have a guarantor loan with us, we’ll try and work with you to get the account back on track. If, for some reason we can’t come to an arrangement, we’ll then ask your guarantor to step in. 

If you’re struggling with repayments, we’re here to help you get back on track. Please call us on 01202084527. You can also email [email protected], if you’re more comfortable chatting that way.

It’s pretty easy! Payments will automatically be attempted on your chosen repayment date, using the debit card details you’ve given. You can also make a loan repayment by calling us on 01202084527. To check your loan details and download your documents you should log into your online account. If you want a loan statement, or to request a change to something about your account you’ll need to call us.

Sure! This could also save you money, which we love.

Prepayment 
We don't charge extra fees if you want to prepay (all or some of) your next monthly instalment before it’s due. You can prepay like this as many times as you want during the loan term. 

If you fancy paying more than your next repayment amount, but you’re not aiming to settle the loan in full, then you can make a partial early settlement.

Partial Early Settlement
If you want to pay off a chunk of your loan to reduce the balance and / or loan term, this is known as a partial early settlement. If you want to do this,you must let us know before making a payment. 

You can partially settle your loan by paying more than the monthly repayment amount, but less than the remaining balance. If you want to pay off the whole balance, you’ll need to follow the early settlement process.

Partial early settlement reduces your balance, leading to a recalculation of the time left on your loan term (or if the amount paid is too little it will just reduce the final monthly repayment).

Partial early settlement payments will not count towards your milestone markers and RateDrops.

The most important thing to remember, for partial and full early settlements, is that you'll pay less interest overall, saving you money.

Early settlement

You can also settle the loan in full (see FAQ ‘Can I settle my loan early?’).

We know that life has its (often unpredictable) ups and downs. If you can't make a repayment, it’s important that you let us know as soon as possible. Our agents are here to listen, talk through solutions, and figure out the next steps, together.

If you're a borrower or guarantor struggling to manage your RewardRate payments, please give us a call (during opening hours) on 01202084527.

How you maintain your loan (whether you make payments on time or not) will affect your credit score.

When you make a payment on time, this will be noted on your credit file. The more payments you make on time, and in full, the better your credit file should look. Paying your loan on time and in full each month is a good way to show you’re a reliable borrower.

This is good if you’ve got a low credit score or no credit history. As long as you keep on top of your other bills and financial commitments as well, your credit score could begin to rise.

Please be mindful that if you miss a payment and the account falls behind by 14 days, we’ll have to let the credit reference agencies know. This could affect your credit score, making it harder to borrow in the future.  

It’s important that you keep on top of loan repayments, for your financial and personal wellbeing. We appreciate that things don’t always go to plan however. Let us know as soon as you can on 01202084527 if you're struggling to make your repayments. We’ll do what we can to support you.

If you have an active loan with us then unfortunately we can't lend you more money, as we don't offer top-up loans.

However, you can apply for finance with us six months after paying off your last RewardRate loan.

We’ll always attempt repayment on your chosen repayment date, however, if you pay via direct debit and the date falls on a weekend or bank holiday it might come out the next working day. 

If a repayment date in any month is not a working day or is a date that does not occur every month (for instance, the 31st), we will treat your repayment as being due on the next working day for record keeping and credit purposes.

All of your documents will be stored in your online account. It’s probably easiest if you download the document you need as a pdf and if you can, print it at home. If this isn’t possible just contact us on 01202084527 or [email protected] to tell us what you need and we’ll send it to you.

If you opt in to receive electronic copies of documentation, we’ll send most of it via email. There are certain documents that we still have to send to you in the post. This is in accordance with the Consumer Credit Act. This may include, but isn’t limited to, missed repayment updates (if your account is behind) and other legal notices.

If you’ve opted into going paperless, it’s really important that you take responsibility for checking your online account or email address for notifications. If you want paper documents sent to you too, please let us know.

You won’t have to pay for paper copies but, in the spirit of being environmentally friendly, please only do this when you need to.

We’d like to help you to form healthy financial habits, and checking your documents regularly is a great habit to get into. Any new documentation related to your loan will be popped into your online RewardRate account and sent to you via email as well.

We’ll delete your online account once your loan has been repaid, although you can still request any documentation relating to your loan after it’s been closed. We’ll securely hold the information relating to your loan for seven years, unless you request that it’s deleted (this request is subject to certain conditions).

You can settle your loan at any time with us. To receive an early settlement figure just give us a call on 01202084527. 

If you’re a guarantor on a loan, you can also settle it early.

What is an early settlement figure?

An early settlement figure is the amount of money you need to pay to close your account with us.

You can ask for an early settlement figure at any point during the lifetime of your RewardRate loan. Please note that the amount we quote will expire after 28 days, so you’ll have to request a new figure if you want to settle after this time period.

How will my early settlement figure be calculated?

If you want to settle your loan we’ll apply 28 days’ worth of interest to your current balance (on the day of your early settlement request, using your current interest rate). We'll allow up to 28 days to make this payment. 

Regardless of when you pay your loan off, you'll never part with more than the amount agreed to when you took out your loan. Settling early usually saves you money!

If the RateDropper feature activates on your account in the 28 days after receiving an early settlement figure then we’ll recalculate the settlement amount. Your final figure will be smaller because of the lower APR you’ve unlocked (hooray!).   

Contact our customer care team

If you're unhappy with any aspect of our service and would like us to look into your concerns, please get in contact with us via:

- email at [email protected];

- telephone on 01202084527;

- in writing to: RewardRate, 118-128 Nova Building, Commercial Road, Bournemouth, BH2 5LT.

If you're making a complaint in writing then please give us as much information as possible, including:

- your name;

- your account number;

- a summary of your complaint;

- the best time and method by which to contact you, for if we need more information.

"I've raised a complaint. What happens next?"

We'll acknowledge receipt of your complaint within five working days.

When we acknowledge receipt of your complaint, we will explain our next steps. We aim to resolve complaints as soon as we can and for you to receive a final response from us within eight weeks of the complaint being raised. If for any reason we are unable to meet this deadline we will let you know as soon as possible.

Still not happy?

If you've raised a complaint with us but you aren't happy with the outcome, you can refer your complaint to the Financial Ombudsman Service. You can contact them via:

- post to Financial Ombudsman Service, Exchange Tower, London, E14 9SR;

- their website at http://www.financial-ombudsman.org.uk;

- email at [email protected];

- telephone on 0800 023 4567 or 0300 123 9123.

Do you still have questions?

If you have any questions about this procedure (or anything else complaints related) please don't hesitate to contact us on 01202084527.

Sure thing! If you want to change your repayment date, a RewardRate agent can arrange it for you. It’s worth noting that:

• Your first payment date can’t be moved;
• you can have a payment date change approved as long as you’re not more than three days behind on your latest payment.

Do you want to move your repayment date up to 10 days further away from your current repayment date? You can do this once a year! The ‘year’ is unique to you, in that it starts from the date on which your loan was paid out. This could look like moving your agreed repayment date from 1st January, 2023 to any date between then and 11th January, 2023. 

You’re more than welcome to give us a call on 01202084527 if you’d like an agent to explain the options available to you.

The concept of interest can be confusing for many people. Below is an outline of how we charge interest at RewardRate; it's important that you understand this if you're taking out a loan with us.

Each payment you make will go towards repaying both the interest and the balance (being the initial amount you borrowed). Our interest is calculated daily against the remaining balance, so in the beginning more of your payment will go towards repaying your loan's interest. As you continue with your repayments your balance will decrease, meaning the monthly amount you pay in interest does too. 

The key thing to remember is that the interest you pay is higher at the beginning of your loan term. This gradually decreases as you pay off the loan, as long as you make your monthly payments on time and in full (as stated in your loan agreement). 

You’ll never pay more than the amount you originally agreed to. If you stay on track with your repayments you could even pay less than this (with the interest rate drops that paying reliably earns you)!

By making six repayments in a row (and on time) you can reach a milestone that activates our fantastic RateDropper feature. When you reach any milestone the interest rate on your loan will drop seven business days later, making your monthly repayments smaller (and giving you money back to treat yourself with)! Each RewardRate loan contains a limited number of milestones that can be reached.

Want to get your head around the nitty-gritty of it? This is what unlocked milestones (interest rate drops) look like, with any loan term;

Starting APR is 39.9% APR

Milestone HIT 1 = RateDrop 1 to new APR of 37.4% 

Milestone HIT 2 = RateDrop 2 to new APR of 34.9%

Sit back and relax; we’ll automatically calculate what you’ll pay in total and what your new monthly repayment will be. Once you unlock a lower interest rate, it’ll never go back up.

One of the exciting features of a RewardRate loan is that you have the option of taking an annual payment holiday*. Hitting the ‘pause’ button on your loan is handy for when you have something like a birthday or travel coming up that you’d rather spend a bit of money on.

You need to have made at least six repayments, in a row and on time before being eligible to take your first 'holiday'. Then, after seven business days, you’ll have the ability to book your holiday. Your account must be up-to-date with repayments, and you need to let us know at least five business days before the payment you’d like to pause is due. You can also only request a payment holiday for the next instalment that you’re due to pay. Take this as a working example: 

Imagine that you’ve made six repayments, on time and in a row. We’ll drop you a message letting you know that you’re now eligible for a payment holiday. It’s June, but you want to take your payment holiday in November. You can do this, but you’ll need to stay on track with your repayments and submit your payment holiday request in October (at least 5 days before the November instalment is due).

Your interest will be frozen during your payment holiday, and taking the holiday won't affect your credit rating. The payment you're skipping will simply be added onto your loan term.

If you’re keen to take a payment holiday because you can’t afford your monthly repayments then please let us know. We have support options available for our customers during difficult financial times. 

*Payment holidays aren't available to guarantors.

A guarantor must be financially stable and have a strong credit score (ideally owning their own home).

If you’re deciding on who to ask to be your guarantor, it’s important to pick somebody you trust, and who you’re comfortable to talk to about your finances.

Equally, if someone has asked you to be their guarantor it’s important that you know them well, you’re comfortable with what the loan is being used for, and you can both afford the repayments (we’ll triple check this too).

A guarantor will need:

• to be aged 28-65;
• to have a good credit score (we’ll check this using our creditworthiness assessment);
• to be a UK resident (and have a UK home address);
• to have a monthly net income of £1,000. Where income is received from employment, the guarantor must have been continuously employed for a minimum of 6 months;
• to be able to afford the loan repayments (subject to a thorough affordability assessment).

A guarantor must be the borrower’s:

mother, father, brother, sister, grandmother, grandfather, aunt, uncle, cousin, friend, son-in-law, daughter-in-law, mother-in-law, father-in-law, son, daughter, sister-in-law, brother-in-law, nephew or niece. We also accept step-family as guarantors. 

Can a partner be a guarantor? 

No. We don't accept partners as guarantors. The reason for this is because often finances will be shared as partners. If we allowed this, and the borrower or guarantor ran into a tough time financially then it could affect both the borrower and guarantor significantly.

The guarantor is someone - usually a friend or family member - who guarantees or vouches for someone. When you act as a guarantor for someone else’s loan, you promise to repay the loan if the borrower can’t. Being a guarantor can make borrowing possible for someone who otherwise might not have access to finance.

Put simply, a guarantor's responsibility is to make loan repayments if the borrower doesn't. 

Ideally a guarantor will never have to do this. We thoroughly check that loans are affordable for both borrowers and guarantors, but sometimes unexpected things happen and a borrower might not be able to keep their loan on track.

If repayments do fall behind, we'll try and work with our borrower directly before involving their guarantor (although we will keep them up-to-date with what's happening). 

We'll only ever ask a guarantor to make a payment(s) on behalf of the borrower if we think that it’s the best way to bring the account back up to date. 

We’ll do this if we can't put a payment plan in place with the borrower, or if the account is about to fall two payments behind.

If the loan falls six payments behind, we have a responsibility to start reporting the loan on the guarantor’s credit file. This means that future payments from this point, (until the loan is finished) that are made on time or late, will show on their credit report. This information is shared with other lenders and may limit the options the guarantor has for credit in the future.

No. A guarantor doesn’t have to be employed if they’re retired and receiving a pension.

If they’re employed, they must have worked for the same employer for a minimum period of 6 months, at the time of applying.

Can a guarantor be self-employed?

Unfortunately we cannot accept guarantors who are on a self-employed income.

Yes. We can accept benefits as an income for a guarantor application as long as it is not the only form of income.

If at least half of a guarantor’s total income is from a wage or pension then benefits can be included in their income amount.

No. We can only accept guarantors who are UK residents, with a UK address.

Guarantors are sometimes required for our loans if a borrower is just starting out and hasn't yet built up a credit history. Or, if a borrower has a poor history when it comes to managing their credit. In this situation the guarantor is acting as another layer of security  to the loan, so that if the borrower missed a repayment, the guarantor is there to step in and make it for them.

Having a guarantor to back them up can give someone access to finance with RewardRate, especially if they’ve been declined elsewhere.

Our guarantor loan starts at an interest rate of 39.9% APR, but can drop to 34.9% APR with our RateDropper feature! Check out some more information here.

Yes, we do! RewardRate also offers a personal loan option.

A personal loan from RewardRate can be a great alternative for those who don’t have, or don’t want to ask someone to be their guarantor.

You can check your eligibility for a personal loan with us, without it affecting your credit score.

No. All RewardRate loans are unsecured, meaning that you can borrow money without offering up security based on a major asset, like a house. The only exception is if we have to resort to court to recover missed payments and a property charging order is granted (which means if you sell or re-mortgage your home before the debt is cleared, the charging order will be paid off from the sale or re-mortgage proceeds). We take steps to avoid this whenever possible.

Yes, they will. We ask all guarantors to complete an affordability check. This pulls all of their income and outgoings into one neat place for us to view. With this information we create a budget plan to see if the loan repayments are affordable, should the guarantor ever need to step in and make one (or more) repayments.

Check out the affordability check section in our ‘Applying for a RewardRate loan’ Guide for more information on this. 

A guarantor can be declined for several reasons. The most common of these include that their credit score isn’t  enough to meet our lending criteria, *or* that the budget plan we draw up suggests they would struggle to make the repayments (if needed). 

We live by the principle that ‘if it works for you, it works for us’. Affordability is everything so we need to be sure that the loan repayments are a comfortable outgoing for all parties involved. 

Other reasons may include: 

• not receiving a stable or reliable income;
• not living in the UK;
• they are already a guarantor on another loan with us.

To keep their information private, we only ever discuss the reason for being declined with the guarantor themselves. 

If your first choice of guarantor doesn’t fit our criteria,  you can nominate another person who might.

If a loan hasn’t been paid out then the guarantor on the loan application can be changed. Call us on 01202084527 and we can make the change for you.  

If the loan has been paid out then the only way to stop being a guarantor is to settle the loan in full.

Yes. When checking if a guarantor is suitable, we’ll run a credit check (otherwise known as a soft search) to see if they fit our criteria. See our ‘who can be a RewardRate guarantor?’ FAQ for more on this.

As with all soft searches, this won’t affect a guarantor’s credit score. Other lenders won't be able to see that we've run a soft search either.

A soft search will let us know how a potential guarantor manages their own finances. We can see if they're a homeowner, as well as their credit history.

Along with the credit search, we’ll run an affordability check with Consents.Online to check if a guarantor can afford the loan repayments, if they ever need to step in and help a borrower out.

If you’re still in the application process (even if you’ve signed the agreement) and providing no money has been paid out, then you can withdraw your application. You’ll need to tell us if you’d like to do this, before we sign your final paperwork. If you’re having doubts about your commitment then please call us as soon as possible on 01202084527. You can also email [email protected] if you’d prefer.

If the money has been paid out, and you’re within the 15 day cooling off period, then you can hand the loan back to us (plus any interest accrued). This will signify the end of your time with us as the guarantor on that loan. The only way to stop being a guarantor, outside of the cooling off period, is to settle the loan in full. Check out our FAQ titled, ‘Can I settle my loan early?’ if you’d like to pay off a loan that you’re the guarantor on.

You can find some useful information on being a guarantor in this RewardRate blog.

No. A person can only feature on one RewardRate loan at a time, either as a borrower or a guarantor.

We might take a payment from the guarantor's bank account if the borrower hasn’t been able to make it themselves. 

Already having a guarantor’s card details to hand means that we can bring an account up-to-date quickly. We want our borrowers to build the healthiest credit score possible. A payment from a guarantor can stop negative marks from building up on a borrower’s credit file and prevent repayments from falling too far behind. 

We will always try to agree on a payment solution with the borrower before asking their guarantor to step in. We take all reasonable steps to avoid taking money from a guarantor’s bank account.

Card details can be changed or removed at any time, but we do ask that valid card details are held on a guarantor loan account.

If the borrower misses a payment for any reason, we’ll do all we can to work with them to get the account back on track (we’ll keep their guarantor in the loop too).

If the account remains overdue, and we haven’t been able to put a plan in place with the borrower, we’ll attempt payment from the guarantor’s card just before the next payment is due. 

We’ll always let a guarantor know before we attempt a payment from their debit card. We’ll also let them know how to contact us if making the payment will leave them in a tricky situation. This is why we ask guarantors to keep us posted if their financial situation ever changes.

Being someone’s guarantor is a big deal! It’s great that you’re thinking about this now, rather than after the cooling-off period. Have a read through any FAQs on the RewardRate website that touch on being a guarantor. Remember that it’s okay to say no if someone asks you to be their guarantor. If it doesn’t work for you, it doesn’t work for us.

If you have an application that’s currently being processed and you want to cancel it, just give us a call on 01202084527.

We like that you’re taking this role seriously. This RewardRate blog post has lots of information that could help you to make your decision.