TrustTwo Loans Review 2020 | Loans Like TrustTwo Loans lender
Last updated: 20th Feb 2020

TrustTwo Loans Review

About

TrustTwo is a guarantor loan provider in the UK offering loans between the range of £500-£15,000 to those borrowers that are able to bring someone to cosign a loan with them. The company behind TrustTwo is called Everyday Lending Limited, which is registered in the UK and regulated by the Financial Conduct Authority. According to the TrustTwo website, a key feature of the loan company is that it is able to offer loans to such applicants that have a bad credit history, at rates that are market competitive. TrustTwo is a direct lender.

Also Check: Talk Guarantor Loans Review

Types of loans

TrustTwo only offers guarantor loans to its customers.

A guarantor loan requires an applicant to have a cosigner to a loan for it to be approved. As a cosigner, who is usually a family member or close friend, their responsibility is to cover the monthly loan repayments if and when the borrower becomes unable to do it. However, sufficient checks are in place to ensure, as much as possible, that the borrower is able to meet the due monthly loan repayments.

  • Loans are available between the range of £500 to £15,000.
  • Applicants with a bad credit rating are also eligible to apply for a guarantor loan with TrustTwo.
  • Borrowers of guarantor loans are able to improve their credit rating, provided they make all the due payments on time.
  • TrustTwo allows loan terms between 12-60 months.
  • Borrowers are given the flexibility to select a loan term of their choosing.

Although payday loans are also a readily available source of funds even for those who have a poor credit rating, the applicable APR on them is usually much higher than guarantor loans because they are unsecured and hence the lender covers the additional risk with a higher charge. Since guarantor loans have a guarantor, someone that has a good credit history and also the capability to afford loan repayments if needed, the risk for a lender is reduced and hence it is able to offer a low APR.

  • Once an application is approved by the lender, including both the borrower and the guarantor, the loan amount is disbursed within 3 days.
  • The loan amount is deposited into the guarantor’s bank account, to prevent fraud.

By transferring the loan amount into the borrower’s bank account, a guarantor provides evidence to the lender that they have accepted responsibility towards the loan and acknowledged the receipt of funds.

Eligibility Criteria

The following eligibility criteria applies to TrustTwo loans. Applicants must:

  1. Be over the age of 18
  2. Be a resident of the UK
  3. Prove affordability for the monthly loan repayments
  4. Meet any other criteria as required by the lender.

A stricter eligibility criteria exists for guarantors, as they have to bear the ultimate responsibility of the loan being paid off. Guarantors must:

  1. Be over the age of 21 and under the age of 80 by the time the loan term has concluded
  2. Not be a spouse
  3. Maintain separate finances than the borrower
  4. Have a good history of credit
  5. Have a home under their name, including as part of a mortgage agreement, or be a tenant with a good record, or maintain residence with their parents

Also Check:

Pros & Cons

The following pros & cons are associated with the services being offered by TrustTwo loans:

Advantages
    • Accessible to those with bad credit

Those applicants that have a bad credit record, mostly due to financial mishaps in the past, are eligible to apply for a TrustTwo loan. Also, according to TrustTwo, the lender shares information pertaining to a borrower’s credit behavior with leading credit reference agencies across the UK. This makes guarantor loans a great way for such applicants to improve their credit rating and eventually become eligible for other, cheaper source of credit.

    • Funds available within three days

After both the applicant and the guarantor have been approved by TrustTwo, the funds are disbursed within three days by the company.

    • The application process is completely online

To make sure that every application gets processed as quickly as possible, TrustTwo requires both the applicant and the guarantor to fill out their details online. The lender then simply collects this data and automatically conducts a soft search (not impacting the credit score of either the borrower or the guarantor) to check whether both the applicant and the guarantor meet the eligibility criteria.

    • A dedicated customer service platform

TrustTwo has a dedicated customer service platform. Customers can either call the customer service at 01628 280 113, or email them at contactus@trusttwo.co.uk. Hence, in case customers face any issues or have any questions pertaining to the service being offered by TrustTwo, they can simply reach out and have their queries/concerns resolved.

Disadvantages
    • Only offers guarantor loans

While guarantor loans are a great option for those with a bad credit history, it may not be suitable for others who might be able to qualify for loan options that do not require a guarantor and are available at a cheaper rate.

    • No option to apply over the phone

Many applicants and/or guarantors prefer to apply over the phone because they are not tech savvy, and hence many lenders to provide this service in addition to an online application form. This service is not available in the case of TrustTwo.

Borrowing costs of TrustTwo loans

The representative APR charged on TrustTwo guarantor loans is 49.5%. It falls down to 36.87% for loan amounts exceeding £10,000.

For example, someone borrowing £4,000 from TrustTwo for a period of three years would be repaying a total of £7,003.80 at a fixed interest rate of 40.9% per year. The total interest charged on this loan would be £3,003.80.

TrustTwo does not charge any additional fee, such as setup or initiation fee, for its loans.

The following borrowing scenarios illustrate the charges a borrower would need to bear after taking out a loan with TrustTwo.

Loan TypeLoan AmountLoan TermTotal RepayableCharge of Credit
Guarantor Loan£1,00012 months£1,236.12£236.12
Guarantor Loan£5,00012 months£6,180.48£1,180.48
Guarantor Loan£5,00036 months£8,771.40£3,771.40
Guarantor Loan£12,00048 months£21,346.56£9,346.56

Information Required To Apply

The following information is required to be submitted by an applicant while applying for a loan with TrustTwo:

    1. Full name
    2. Date of birth
    3. Contact information including mobile number and email address
    4. Current UK address
    5. Monthly disposable income

A similar set of details also need to be provided by the guarantor.

How To Apply With TrustTwo?

The following steps are required to be fulfilled for an applicant to apply for a guarantor loan with TrustTwo.

The following steps are required to be fulfilled for an applicant to apply for a guarantor loan with TrustTwo.

Step 1

The application process starts by logging on to the TrustTwo website at www.trusttwo.co.uk. On the window shown above, select whether the guarantor is a homeowner, a tenant, or living with parents. Then, select the loan amount that needs to be borrowed and the loan term. Borrowers should check the monthly repayment and the total repayable figures at the bottom of this window to ensure they are comfortable with them before proceeding further by clicking the Apply Now button.

The following form appears after completing the first step.

Step 2Step 2

Applicants need to fill out all the required information on this form as accurately as possible and click on the Retrieve my Personal Quote to get a personalized quote. This quote is simply to allow applicants an insight into the loan charges they would have to bear if they take out the loan. After receiving the quote, applicants need to finalize the application form.

After an applicant submits the application form, their chosen guarantor receives a link on their email address which they need to follow. This link contains a registration form, and the guarantor needs to fill it as accurately as possible. The process has been kept online to expedite the loan application process.

Once the guarantor has filled out the registration form, TrustTwo will either accept or reject the loan application in principle. If accepted, the lender will call and verify the information that has been presented in the forms. After this, affordability checks would be conducted to verify the ability of both the borrower and the guarantor to make monthly loan repayments. Once the lender is completely satisfied, the loan application is finalized and both the borrower and the lender are sent a link to electronically sign the loan agreement.

After the loan agreement has been electronically signed by both the borrower and the guarantor, TrustTwo processes the loan amount and deposits it into the guarantor’s bank account. The guarantor is then expected to transfer this amount to the borrower.

FAQs

It is highly unlikely, since a guarantor usually does not have the affordability to make payments on two loans at the same time. Although it may be argued that the chance a guarantor would have to make repayments on two guarantor loans is slim, since at least one borrower would make all the loan payments, TrustTwo is simply not willing to take that risk. Hence, in order to minimize the risk of default on the loan, TrustTwo would most likely not allow a guarantor to sign up if they are already a guarantor on another loan.

Legally, no. A guarantor has signed an agreement with TrustTwo, and refusing to honour that agreement is a violation of the law. This can lead to legal action in addition to damage to the guarantor’s credit rating.

The guarantor loan provided by TrustTwo has no impact on the guarantor’s credit score as long as the borrower keeps making timely loan payments. Should the borrower miss a due loan payment, it then becomes the job of the guarantor to honour the payment within a stipulated timeline otherwise the guarantor’s credit score may also be adversely impacted.

It is expected that only family members or close friends would be comfortable enough to cosign a loan with a borrower as they understand the borrower’s financial situation and behavior more than anyone else. Otherwise, it is not necessary for the guarantor to be a blood relative, and hence anyone who fulfills the eligibility criteria of a guarantor can become one.

Yes, the lender does allow borrowers/guarantors to settle a loan amount earlier than the end of the loan term. They simply need to get in touch with a TrustTwo representative and inquire about the settlement figure. Paying this amount would discharge them of their loan obligation.

Lenders Like TrustTwo

Are you looking for a guarantor loan that offers something different compared to a TrustTwo loan? Would you like to look at alternative guarantor loan providers and see whether they are offering a service that is better suited to your needs? Then you should check out the following brokers/lenders. They are also operating in the UK, and have been reviewed and rated by Credit Raters.

Broker/LenderDescription
Guarantor My Loan (P2P)Guarantor My Loan is a peer-to-peer guarantor loan provider operating in the UK offering loans between the range of £1,000-£10,000. The representative APR being charged by the company is 29%. Loan terms span between 1-5 years.
UK Credit (Lender)UK Credit is offering guarantor loans in the UK at representative APR of 39.9%. Loan amounts range between £2,000-£15,000 with a loan term spanning 18-60 months.

TrustTwo Promo Codes

There are no promo codes available for TrustTwo at this time.