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about Loans bad Credit No Guarantor Needed
14 Oct 2019

All You Need to Know about Loans bad Credit No Guarantor Needed

Where do you turn when you urgently need extra money for a short period while experiencing a tough financial spell? By default, you could rely on your credit card to make several payments. But, of course, there is only so much of an extra wiggle room that a credit card can offer. If you fail to clear your monthly debt, you will have to pay an interest that could stress you further financially.

The Guardian reports that millions of UK residents have in recent years started to rely heavily on quick loans for emergency cash. Loans bad credit no guarantor needed are offered by most direct lenders. They are a great option if you cannot get a loan from traditional lenders due to your low credit score. But, before you can rush to get one, let us explore some other options you could try.

Financing Options under Bad Credit Conditions

If you urgently need extra cash to address a financial emergency, there are several options you have. They include:

  • An authorised overdraft. This is where you withdraw more than you have in your bank account. This funding is intended to be for the shorter-while and its costs vary hugely from one bank to the other. Some banks have daily or monthly fees and others charge interest or both.
  • Family and friends. Easier to qualify due to your relationships and you might even get a loan without interest. Be careful as you might ruin your relationships if you fail to repay.
  • Credit unions. They are a great option because you can score low-interest rates and they might have lenient terms.
  • A co-signer. The co-signer agrees to assume your financial liability should you be unable to repay the loan. The most obvious drawback here is that you might not easily get a person willing to jeopardize their creditworthiness.
  • Home equity. Your credit score is never a factor when you have equity. Most lenders would be willing to give you a loan. However, this places your home at risk of seizure.
  • Online or P2P. A huge market of online peer-to-peer lending sites could be a worthy alternative.

Loans Bad Credit No Guarantor Needed Are Now Widely Accessible

As stated above, it might be complicated to get someone to co-sign the loan for you. When you get lucky and find a co-signer, you still need a lot of time to gather their documents. Modern lenders understand that. This is why they offer quick loans even to individuals that do not have anyone to act as a guarantor.

These modern lenders approve your loan application even when you have bad credit! This is because they acknowledge that your credit score is not the only legitimate means of evaluating one’s creditworthiness. Some of the other things that can prove that you are creditworthy depending on the lender include:

  • Tax returns from the past two years
  • Employment history or proof of other sources of income
  • Borrowing history
  • Credit card debt details
  • Bank statements
  • Educational information
  • Details about alimony or child support you normally receive

Direct lenders will give you a loan as soon as you prove that you can afford it. This means that having a source of income is enough to prove your eligibility. However, to get the loan you need to be:

  • A permanent UK resident with a verifiable address
  • Have attained 18 years of age
  • Have a bank account where your cash will be deposited

The Pros and Cons of these Bad Credit No Guarantor Loans


  • Quick. These loan applications are approved fast. The lenders process the money quickly and you can receive it within the same business day.
  • Many lender options. This gives you a wider pool of choice allowing you to choose a lender who properly matches your criteria.
  • Flexible repayment. You get a flexible time of repayment with an option to pay back the loan in instalments.
  • Opportunity to improve your credit score. If you make timely repayments, the lenders report your financial behaviour allowing your credit rating to be uplifted.


  • High-interest rates. You might have to contend with high APRs and interests as the lender takes a huge risk.
  • Fees and Penalties. Check to ensure that you do not take a loan with harsh fees or late payment fines.
  • Unscrupulous or unlicensed lenders. Be extra cautious to borrow from a reputed and properly licensed lender.

Loans bad credit no guarantor needed are a feasible solution for people looking for quick financing under flexible terms. At Bonsai Finance, we connect you to credible and licenced lenders to ensure that you find the best-suited lender for your situation, and that you are not exploited by unscrupulous entities. Connect with us today to also learn how to improve your credit rating and secure your financial future.