What Are No Guarantor Loans?
No guarantor loans are loans that don’t require another person with better credit ratings as a guarantor to qualify for loans. A guarantor is responsible to pay borrowers’ debt in case the borrowers are unable to complete the repayment. Many lenders offer no guarantor loans with various requirements and rates, especially for people with good credit history.
Can I Apply For a No Guarantor Loan With Bad Credit?
A no guarantor loan is common for people with good credit history. However, there are some lenders who would still offer this kind of loan even if you have bad credit.
Another option is to get a secured loan in which you are required to put up your asset like a house or car as security to qualify for the loan. Since lenders already have your asset as a guarantee, they won’t ask for a guarantor even if you have bad credit.
|How much can I apply for?||£100 to £5,000||Zero-obligation quote|
|Length of the repayment||1-36 months||Quick payout|
|Interest rates (variable)||49.7%||Zero paperwork|
|Can I apply with poor credit standing?||Yes||Bad/low credit considered|
|Do I have to pay a lump sum?||No||Flexible repayment|
|When am I allowed to apply?||24/7||2-min simple application|
Guarantor or No Guarantor, What Are The Differences?
The main difference is whether you apply for the loan with a guarantor or not. If you take loans with guarantors, the contract would require acknowledgment not only from you and the lenders but also from the guarantors.
Another difference lies in the risk. No guarantor loans tend to have higher rates compared to loans with guarantors. However, loans with guarantors also have risks of their own. As the guarantors basically use their credit credibility to guarantee your loan, late repayments or violations of the loan’s agreement on your side may affect their credit.
What Are The Advantages And Disadvantages Of No Guarantor Loans For Bad Credit?
Getting no guarantor loans could be a solution for your financial necessity or even as a way out of emergency situations. However, these loans could also be a bad choice depending on your situation. Therefore, it is important to know the good and bad before making any decision.
- No involvement of another person and risk of having a bad relationship with them.
- No harm to another person’s credit ratings.
- There is a secured or unsecured loan option.
- Lower chance to qualify.
- Higher interest rates.
- Fewer loan options if you have bad credit.
How to Get No Guarantor Bad Credit Loans?
The best way is to search for lenders on the Internet first, before going anywhere. However, it may still be difficult and time-consuming to find the right offer from various lenders one by one.
In this case, UKBadCreditLoans has a simple solution for you. As a UK-based loan broker, we can help find your potential lenders more quickly by matching your request to lenders from our network. How? Simply follow the steps below.
- Provide your information and apply: Fill in the application form on our website so we know what kinds of lenders you are looking for.
- Instant decision: Get your instant decision from our lenders and review their terms.
- Get your money: Receive the money within a few days after signing the loan agreement.
Looking to Borrow Money Easily?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
How Much Can I Get From a Bad Credit Loan Without a Guarantor?
It ranges from £100 to £5000 depending on how you can convince the lenders with your ability to pay the loan back. Make sure you prepare a clear document that can prove your stable income. Having a low debt-to-income ratio may also increase your chance to qualify with higher amounts.
It is advised to propose amounts that you know you can pay back. Since a bad credit loan tends to have higher interest rates, it’s going to be difficult to keep going with the repayment process in the long run. So, small amounts that can fulfill your necessity are always the better choices.
Do I Really Need a No Guarantor Loan For Bad Credit?
Whether or not a no-guarantor loan is good for you would depend on your financial situation. The last thing you want is to have even bigger debts and damage your credit ratings, especially if you already have bad credit.
In the end, it comes down to how much money you need and your ability to pay the money back. For that reason, you have to do a thorough calculation before making any decision. Besides the interest, never forget to also include the loan fees in your calculation!
Frequently Asked Questions
Are no guarantor Loans for bad credit secured?
They could be either secured or unsecured. The secured ones require collateral of your asset and they tend to be easier to qualify for. The unsecured ones don’t require any collateral but they are harder to get approved.
What are the differences between a no guarantor loan and a payday loan?
A payday loan is a type of short-term loan that is common for people with bad credit and is usually only available for a small amount of money. While a no guarantor loan could be long-term and is available for a bigger amount.
What will I need to pay for a no guarantor bad credit loan?
You are required to pay back the principal (the amount you borrow) with the interest and the loan fees. Many borrowers overlook the loan fees because they tend to be smaller, however, their accumulation can be significant to the total amount that you have to pay. So, always include everything in your calculation!
When will I usually receive the money after I have been approved?
The process varies by lender however generally you will receive the money within a few days. In some cases, it could even happen the next day of your approval.