Having bad credit is not fun when it comes to a need to borrow money. While your circumstances might have changed drastically since you earned a bad credit score, some lenders do not take account of this. Sure, you might be able to get a guarantor loan but you might not want to bring anyone else into your financial world or perhaps you do not have anyone you can ask. If this rings a bell in your case and you only want a small loan that can be repaid within 12 months you might want to consider applying for 12 month loans for bad credit no guarantor.
Consider a Short-term Loan or Personal Loan
Two types of loans you might want to consider are the short-term loan and the personal loan. Which might be more suited to your circumstances would depend on how much you want to borrow.
Borrow £500 to £1,000 with the Short-term Loan
A short-term loan would allow you to borrow between £500 and £1,000. Lenders usually allow you to spread the cost of short-term loans over a period of 12 months but this would depend on the lender.
Short-term loans can be taken out to cover just about any reason. Lenders are not usually interested in what you want the money for, just that you have a regular income coming in and the loan repayments are going to be affordable.
The lenders we work with are going to check your credit file but they also understand that things might have changed for you and a loan may be affordable. To ensure you can afford the loan the lender will check on the amount of money you have coming in each month and what you pay out each month. Income that is left is called disposable income and this is what the monthly loan repayments would be taken from.
Borrow £1,000 to £5,000 with a Personal Loan
If you wish to borrow up to £5,000, you might wish to give some thought to a personal loan. Whether you will get approval for a personal loan will depend on your credit rating and the amount you want to borrow.
A personal loan can be spread out for up to 36 months with our lenders and money can be borrowed for any reason. One thing to be taken into account when choosing the term of the loan is that the longer you take the loan over the more interest is going to accumulate on the loan.
Interest is added to the loan based on the APR, which is the annual percentage rate. Bear in mind that lenders typically offer a representative APR, this means the interest rate you may be offered on a loan might be higher. Always ensure that you know the interest rate you will pay on a loan and how much will be added on over the year.
Eligibility for 12 Month Loans for Bad Credit No Guarantor
There are some eligibility requirements that you have to meet in order to be eligible for a loan. These may differ between lenders but overall you can expect to have to:
- Have a regular income coming into the home;
- Be at least 18;
- Have a UK bank account;
- A debit card and be in a position to set up direct debits.
Lenders will check your credit file, as the law asks them do so. However, as you are asking for a 12-month loan and are going to be repaying the loan back fairly quickly, they may only make a soft credit check. This means they will not look too deeply into your credit file but instead take into account your circumstances right now.
If the lender believes that you can repay the loan after looking at your income and outgoings, they may be in a position to offer you a loan over 12 months.
When you make an application with us, we will search with the lenders we work with for 12 month loans for bad credit no guarantor based on the information you gave us. We do not offer loans ourselves, instead, we work alongside a panel of lenders offering competitive rates and loans that are affordable.