1 Plus 1 Loans
1Plus1 Loans were incorporated in February 2013 and began lending just a few months later.
With almost four years’ industry experience and a TV advertising campaign under their belt, we’re going to investigate how much of a presence they’ve managed to established in the guarantor loan market.
1plus1 Loans Product
Unlike many of the other lenders in the market today, 1Plus1 Loans lead with a single product.
Their regular guarantor loan allows you to borrow between £500 and £5,000 over a term of 1 to 5 years. This is repayable at a representative 45.4% APR, making them slightly cheaper than the average market rate.
With 1Plus1 the guarantor can be either a homeowner or a tenant. The rate you get will not be affected by their residential status.
To our knowledge, 1Plus1 are the only lender who operate a 24/7 service. Their customer service representatives are available 9am – 6pm, Monday to Friday, but they also operate an online team.
The online team are available 24 hours a day, 7 days a week so if you need help outside of working hours, you can email them and expect a swift response.
Despite a TV advertisement campaign that aired in mid-late 2015, 1plus1 Loans have struggled to establish themselves as one of the ‘big players’ in the guarantor loan market.
When you look at the monthly Google search volume data of 1plus1 loans compared to the previous lenders we’ve reviewed, they don’t fare well:
At the top by some distance we have Amigo Loans, who are getting 11 times the amount of monthly searches of their next market competitor!
It’s tough to put your finger on why 1plus1 have struggled to keep up with similar-aged lenders like Buddy Loans and George Banco. However, it may reflect the power of an effective digital campaign over more traditional marketing methods like TV.
As an applicant, you must be over the age of 18 and a permanent UK resident with an active UK bank account. You must also have a regular source of income that is sufficient to afford the monthly repayments of the loan. Applicants cannot be subject to a current IVA or bankruptcy order.
A homeowner guarantor must be between the ages of 18 and 75. Tenant guarantors must be over 21. Homeowners must have a good credit history whilst tenants credit file must be immaculate. All guarantors must be permanent UK residents with a valid UK bank account and debit card. They must also be able to afford the repayments if the applicant failed to make it on-time.
1Plus1 use a simple 3 step application process. Applicants fill in an online application form and e-sign their agreement.
A code will then be sent to their chosen guarantor’s email inbox which will allow them to log-in online and complete their side of the application.
Once both the applicant and guarantor have signed their online agreements, 1Plus1 will carry out their finalisation phone calls.
If approved, the loan can be paid out on the same day that you apply.
Their quick and easy service is often praised by their customers on the popular review site, Feefo. In the past 12 months, they’ve achieved an excellent average rating for 4.8/5 from 108 reviews.
1Plus1 Loans have a robust process and offer reasonable rates on their guarantor loans. Unfortunately though, they’ve been unable to replicate the success of some of the more experienced providers in the market.
Their 24/7 service is an innovative idea, however it’s questionable whether it offers any benefits beyond simply having longer opening hours (e.g. 8am – 8pm).
Their minimum loan amount of £500 sets them apart from most other lenders in the market. This may prove to be an attractive alternative to high APR cash and payday loans. However, in a market where the average loan amount is increasing year-on-year, 1plus1 may instead need to turn their focus to their maximum loan amount.
1plus1 Loans Website
WARNING: LATE REPAYMENT CAN CAUSE YOU SERIOUS MONEY PROBLEMS. FOR HELP GO TO MONEYADVICESERVICE.ORG.UK
Representative Example: Borrow £4,000 over 36 months. Monthly repayment of £194.78. Total repayable is £7012.08. Interest payable is £3012.08. Fixed APR of 49.7%. Interest rate of 41% per annum. Representative APR 49.7% (fixed).