This first comparison will be made between Guarantor Loans Online and Pounds to Pocket for a £1000 loan taken over 12 months. Guarantor Loans Online have been used due to their fixed APR charge (FLM provide a typical rate and so this rate can change). Pounds to Pocket have been the first company to be compared due to their rising popularity here in the UK. This is a popular lender at the moment that is regularly running TV ad campaigns and is part of the QuickQuid family; I will introduce Pounds to Pocket in detail in a later posting. Typically, many guarantor loan applicants tend to apply for larger loan amounts such as £2000 or £3000, but the £1000 loan example used here is ideal to compare, since there are many lenders out there offering this same loan amount (they don’t tend to offer £2000/£3000 loans).

Guarantor Loans Online (53.8% APR) = 25.316% Overall Cost
£1000 for 12 months = £1253.16
/52 = £24.10

Pounds to Pocket (277.06% APR) = 86.866% Overall Cost
£1000 for 12 months = £1868.66
/52 = £35.94

The “Overall Cost” is a calculation showing what percentage of the loan amount we would have to pay back. For example, if a £1000 loan required a £1500 repayment then this would be a 50% Overall Cost. I have also added the weekly cost by dividing the total loan amount by the 52 weeks in a year (if need be this was rounded off). To get to the comparison, as you can see Guarantor Loans Online offer a highly competitive charge at just over 25%, whilst Pounds to Pocket is almost approaching 87%. This is a vast difference in value between each of these loans and provides some perspective on just how impressive the guarantor loan market rates are today. As noted in the initial passage, Pounds to Pocket will be introduced at a later date, as they are an impressive lender that will transfer the cash in just minutes. This is interesting considering that no faxing is required and they do offer a possible £2000. Guarantor loans Online wins the price comparison battle today though.

(common misspellings/related: 1000 loans, 12 month loans uk, compare £1000 loans, glo, pounds 2 pocket)