What Are Bad Credit No Guarantor Loans?
Bad credit no guarantor loans are loans given out to people who neither have good credit nor have people to stand in for them as guarantors.
Most lenders consider such borrowers high risk. They, therefore, tend to counterbalance this risk with high-interest rates. Still, loans for bad credit with no guarantor are considered a good and viable lending option for clients like this.
Are No Guarantor Loans for Bad Credit A Viable Choice for Me?
Before applying for no guarantor loans for bad credit, it is important to ascertain that it is the best option for you. Here are some quick questions to ask yourself to determine if this loan is a viable choice for you:
How much money do you need?
Knowing this will help you see if the loan can satisfy your financial needs. PaydayLoansUK can connect you with lenders who offer bad credit no guarantor loans between £100 to £5000.
The amount of money you need of course is dependent on what you need it for and the lender’s assessment of your financial situation.
Are you turned down by banks?
Have you tried looking through the terms and conditions of seeking such loans from the bank? It is highly perceptive to seek online loans if you know that your chances of being approved by the bank are slim.
Applying to a bank when you know your chances of landing a loan with them is not considered a smart thing to do. In addition to not qualifying for the loan or getting approved for one, you risk hard inquiries and checks which could make your credit score drop by a few points.
Do you need immediate access to cash?
Most financial institutions require a guarantor to lend you money. The time it takes to process the loan can also be painstakingly long. So, even if you had a guarantor, it may take more time, than you had thought, to process. Therefore, it is not a good option if you need money now.
Online lenders ensure that their clients get their money within the hour that the application is approved. This makes them the first choice for people who need immediate access to funds.
Are you able to repay the loan?
This is the most important question to ask yourself. No guarantor loans for bad credit have steep interest rates. Should you default payment, the interest accumulation can be enormous.
Missed payments would only further worsen your credit history. They can also reduce your chances of landing loans in the future.
Merits and Demerits of Loans Without Guarantors
There are merits as well as demerits of loans without guarantors. Some of them are as follows:
- You do not need outside inputs: One of the hassles of loans that require guarantors is that you need to seek someone to stand in for you. If you can’t get one, it becomes difficult to get a loan.
- You have multiple choices: When a third party is not involved, you have the freedom to pick from an array of options. This can be repayment plans, amount of money, etc.
- Cover unforeseen emergencies: Since you are not required to pen down a guarantor's name before securing a loan, loans without guarantors are processed pretty quickly. This makes them a brilliant loan option for emergencies that need your immediate financial input.
- Higher interest rates: Loans of this type have higher risks as far as lenders are concerned. So, they usually have higher interest rates.
- Defaulting payments carry higher consequences: If you have the deed to land or a property title as surety, you can lose them to the lender if you fail to repay the loan. Therefore, clients should reach out as early as possible to discuss changing the repayment plans should difficulties with payment arise.
How Does Payday Loans UK Compare?
|Why Use Us?|
|What is the maximum amount I can borrow?||Up to £5000||Instant approval|
|Will I be considered if I have bad credit?||Yes||Bad Credit Considered|
|Interest rates (variable)||49.7%||Zero paperwork|
|Loan repayment terms||1-36 months||Flexible repayment|
|Will I be credit checked?||Yes||Will perform credit checks as for financial regulations|
|How do I apply?||Apply online||Simple application form|
Where Can I Apply for No Guarantor Loans With Bad Credit?
You can apply for no guarantor loans with bad credit online. An option is to look for direct lenders yourself. This is however not advisable if you are in an emergency situation. Shopping for reliable lenders with fair interest rates is by no means easy. But with credit brokers, your problems are halved!
A credit broker like PaydayLoansUK connects you with reliable no guarantor loan lenders within a few minutes and in one application too.
Here's how to apply for a loan with PaydayLoansUK.
Fill out the application form
Enter your name, date of birth, contact information, and other relevant biodata information on the form. Support your application with relevant documentation like proof of identity, employer and income verification, proof of address, etc.
Get approved and receive a quote
We match you with some lenders based on your submission. This improves your chances of approval. You should get approved in less than five minutes too. On approval, the lender sends you a quote highlighting the approved loan term, lender’s policies and terms and conditions of the loan.
Signed and submitted the quote yet? If so, expect to get paid as fast as within an hour. You should be able to withdraw your cash soon after too.
Want to Get a Loan?
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).
What Can I Do to Increase My Chances of Getting Approved for a No-Guarantor Loan?
Increase your chances of getting your loans approved with these tips:
Cross-check your details:
The wrong details can greatly decrease your chances of getting your loan approved. Missing out information can do this as well. So, cross-check your details properly before submission.
Increase your credit score:
Payback any outstanding loans and debts. Also, desist from defaulting payments.
I Have Bad Credit, What Are My Other Options?
These are other options to consider if you have bad credit:
Unsecured Loans for Bad Credit
If you’ve got bad credit and no assets to secure a loan, you might want to consider an unsecured loan for bad credit. Although they characteristically have higher interest rates than if you had a guarantor, they remain a good alternative. The total cost of the loan is also quite affordable with some lenders.
Car Title Loans
No guarantor? No problem. You can turn in your car as collateral to secure higher loan amounts. It can be quite refreshing to know that your car asides from moving you from one point to another can also help you secure loans in its thousands.
Payday Loans for Bad Credit
Payday loans are specially designed for people with bad credit. PaydayLoansUK can link you with lenders in a matter of minutes.
How Much Can I Borrow?
You can borrow 100 and 5000 pounds. This however largely depends on your financial situation. The lender is also a big determinant. Not every lender will be okay with giving out up to £5000 to someone with bad credit.
How Quickly Can I Get My Money?
You can get your money within an hour after your application is approved. The exact time you get the loan may however differ from lender to lender. It may also depend on your bank’s deposit processing speed.
How Can I Be Eligible for Loans for Bad Credit with No Guarantor?
You must be at least 18 years old to be eligible for loans for bad credit and no guarantor. You also need to be a UK resident, have a government-issued ID, have a checking account, and be employed. The employment may be part or full time.
What Can I Do If I Forsee That I Can’t Repay My Loans?
Immediately reach out to the lender. You can then discuss a better repayment plan. Being prompt is the best way to avoid default consequences.
Is It More Costly to Get a Loan Without a Guarantor?
Usually, it is. However, with PaydayLoansUK, the interest rates for loans without a guarantor are not significantly higher than for those with a guarantor. There are also no hidden or origination fees which ordinarily can add up to increase the total cost of the loan.