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What Does It Mean To Have A No Guarantor Loan;

In this document, we will be discussing the different types of no guarantor loans out there as well as the pros and cons to the guarantor, no guarantor debate.

No Guarantor Loans Direct Lender

If you need a loan but are unable to pledge collateral, one of your options is going to a no guarantor loans direct lender. Simply fill out an application form to get started and wait for a verification call. The loan offers fund on the same day you’ve applied and you can borrow from £200 to £2000 if you are qualified.

To fully understand what no guarantor loans are, let us first discuss guarantors. A guarantor is another person who vouches and promises the lender to repay the loan should the borrower defaults on the loan. As a cosigner, he is obliged to take over the repayments which include the loan amount, interest rate, and other charges. When you choose a no guarantor loan, there is no need to find someone who will assist you. This is more relieving since you don’t need to bother any family or friends just to have extra cash.

You have two options to choose from when you a need a loan – a direct lender and a loan broker. If you want an easy way of getting money while dealing with a single company, a no guarantor loans direct lender is ideal. There are no other people involved and the lender is the direct person who has full control over the loan. A loan broker, on the other hand, will help you find the right lender. He will also assist you with paperwork and other concerns. Because of the wide access they have with different lenders, it’s almost impossible to end up rejected. However, the loan broker has no control over the loan’s terms and conditions and they have to wait for the lender’s decision. At some point, getting a loan through loan brokers take time.

No Guarantor Loans For Bad Credit

Automatically, you’re considered as a high-risk customer when you have a bad credit. Since lenders have strict standards, anyone with an unpleasant credit history is rejected right away. Banks and traditional lending institutions do this most of the time but you can always turn to online lenders when you need financial assistance. While having a guarantor to back you up is ideal, you can still get a loan even without another person. Just be sure to provide a proof of income and a working bank account. Lenders will accept your loan application if you can prove your capability to settle the debt. However, be careful when getting a bad credit loan as there are many predatory lenders who are accepting borrowers just to earn money from them. The rates they offer are unreasonable and it often leads loan seekers into a cycle of debt.

The best way to score low-interest loans is to improve your credit rating. It increases your chance of having the loan, borrows a bigger loan amount, and pay for cheaper interest rates. Meanwhile, with a bad credit score, you will only face rejection from banks and other lenders but also from cell phone companies and housing.

No Guarantor Loans UK: No Guarantor Loans Instant

There are many lenders in the UK and a simple Google search may make you feel overwhelmed. To know which kind of loan will work best according to your preferences, here are some things you need to consider:

  • Credit Score

If you’re not certain about your credit remark, get a free copy of your credit report. Fix any discrepancies as soon as possible before you get a loan.

  • Shop Around

Many people settle for the first lender they see online. As a result, most of them did not get the best possible deal. So before you send an application, be sure to shop and compare at least five lenders. Choose the one who offers the lowest APR and most flexible repayment term.

  • Offer Collateral

Offering collateral, whenever it’s possible, is practical as it reduces the interest rate. After all, nobody wants to settle expensive fees. Just be sure to obey the lender’s terms and conditions to avoid losing your property.

No Guarantor Loans Or Guarantor Loans

A person suffering from a bad credit remark may have a hard time coming up with a decision on what loan to choose. If you’re clueless about what kind of loan to apply for, here’s a quick comparison between no guarantor loans and guarantor loans:

No Guarantor Loans

  • Lenient requirements. Any 18 years old (and above) UK resident may apply for the loan. Even those who have committed arrears, CCJs, default, bankruptcy, or late payments are qualified.
  • Fast and easy application. The candidate needs to fulfil a 2-minute loan application form online. There’s no need to bring documents or deal with different lenders; instead, the applicant is just required to share personal and financial details.
  • No need for guarantors. No need to chase any family member or friend to become your guarantor and you can borrow without notifying anyone.
  • No need to pledge collateral.
  • Quick approval. Since the need for verification is minimal, the approval happens in a short period of time.
  • Flexible repayment terms.
  • Extremely high-interest rate.

Guarantor Loans

  • Strict requirements. The guarantor must have an excellent credit remark and a high income. Some lenders may even require the cosigner to be homeowners.
  • The application process is not as fast as no guarantor loans because there’s a need to verify documents and IDs.
  • Low-interest rate.
  • Bigger loans amount.
In Conclusion

While it’s easier to get a loan with a help of a guarantor, you cannot get this loan all of the time. Finding another person who will cover the entire loan is challenging so if you want an easier option, you may use no guarantor loans. After all, it carries a number of advantages that you cannot simply ignore. It is true that the interest rates and other charges are intimidating and may easily trap you into a cycle of debt, but you can avoid them by dealing with a legitimate and reputable loan provider only.