Are there any types of no credit check loans no guarantors needed out there? If you are asking yourself this question, you are not alone. Each year millions of people with poor credit ratings want to apply for a loan but wonder whether they will get one if the lender checks their credit rating. These same people also wonder whether there are any loans not needing a credit check and whether they can get a loan without the need for a guarantor. So, wonder no more, as we are here to explain everything about loans aimed at people with a less than perfect credit score.
We will talk about the following throughout this article.
- Whether you can get a loan without having a credit check
- What a credit check entails and why lenders do it
- Whether there are loans that don’t need a guarantor
- The types of loans you might want to consider
- Benefits of applying online with our help
Is It Possible to Apply for a Loan without a Credit Check
First, let’s tackle the issue of whether all lenders always check your credit rating when you apply for a loan as this will probably be the first thing on your mind.
Any ethical lender is going to want to check your credit score when applying for a loan online. However, there are different types of credit check, depending on the amount you want to borrow. If you only need a small sum, the lenders we work alongside will consider your credit rating but also verifiable income. They will want to know how much income you get each month and what you payout. The amount left over is classed as disposable income, which is money you might use to pay off the loan.
Therefore, if you are looking for no credit check loans no guarantors needed, the lender will make a soft credit check with the payday loan but you do not need a guarantor.
What Do Lenders See On Your Credit Rating?
When lenders check your credit rating they do so as it gives them an idea as to how you have managed credit in the past.
They will look for any red flags that suggest you might be a risk if they gave you a loan. Things that lenders look for on your credit report include:
- The credit accounts you hold;
- Any closed accounts within the past 6 years;
- Any late or missed repayments;
- Any County Court Judgements;
- Any IVAs or bankruptcies;
- Details of hard credit checks made by other lenders.
So essentially, yes, lenders will want to check your credit rating and they will look more deeply into it if you ask to borrow a larger sum of money. As mentioned earlier though the lenders in the panel we work alongside will consider verifiable income too and your ability to repay the loan.
Do All Loans for People With Bad Credit Require a Guarantor?
If you have a particularly bad credit rating and want to borrow a large sum of money, lenders might offer you a loan but might ask that you get a guarantor to stand by your side.
Guarantor loans may work out well for some people but are not suitable for everyone. You might not have someone you feel you can ask or might not want to share the fact that you have a poor credit rating and cannot get a loan with everyone.
Luckily, some loans do not need a guarantor. However, with a very bad credit rating, you have to be aware that you might not be able to borrow thousands of pounds unless you consider a secured loan.
Some loans are generally more suited to people with poor credit ratings than others might be and these are loans offering relatively small amounts of money. Lenders are usually more lenient if you only ask to borrow a small amount and repay it back quickly.
The Types of No Credit Check Loans No Guarantors
The three main types of loans that do not need a guarantor that people with poor credit may stand a better chance of finding approval for are:
- A payday loan
- A short term loan
- A secured loan.
As mentioned before lenders will make a credit check, there is no getting around that, as they will want to protect themselves before offering you money. However, with smaller loans, they may not look too deeply into your credit score and they will consider current circumstances and loan affordability.
Borrow Up to £500 with a Payday Loan
A payday loan might be a suitable type of loan for anyone with a poor credit score who only wants to borrow between £100 and £500. While these types of loans can be taken out for any reason, one of the biggest reasons is to cover a financial outlay that has cropped up unexpectedly.
Payday loans are taken out only for a month or two, up to three months with some lenders. Lenders expect you to repay the loan, along with interest either on your next payday or spread out for up to three paydays (months). The earlier you repay the loan the less it will cost you to borrow in the end as interest is added on daily.
Borrow Up to £1,000 with a Short-term Loan
With a short-term loan, lenders generally, allow you to borrow up to £1,000. Some lenders might offer less, some more, it depends on the lender and your ability to repay the loan and your credit score.
The short-term loan can be spread out for up to 12 months usually; again, some lenders may give you more time and some less.
Borrowing with a Secured Loan
If you need to borrow thousands of pounds and you want to spread the loan over years you might have to think about a secured loan. While you do not need a guarantor to get the loan you do have to secure the money, you want to borrow against something of value. Generally, this is your home or a vehicle. As this is a secured loan, you can lose whatever you secure if you find you cannot repay the loan. Therefore, a loan of this nature has to be given some very serious thought.
The Benefits of Applying For a Loan Online
While your first thought might be to search for a loan online off your own back, you might want to consider the benefits of allowing us to search on your behalf with the panel of lenders we work alongside and there are many benefits.
- Single Application Search with Multiple Lenders
The first is that we have the ability to be able to search for you with multiple lenders even though you only have to make one application. This saves time and more to the point multiple searches will not be recorded on your credit file. If you have to make multiple searches on your own after being turned down, they will show up on your credit file and can have a negative effect.
- You Are Not Kept Waiting
From just a few details, we can give you an instant decision. If we match you with a lender, you can go to the lender’s site, check out the loan and finalise it if you are happy to go ahead.
- Get Access to Some of the Most Competitive Rates
The lenders on our panel offer competitive interest rates based on your circumstances and affordable loans.
- Numerous Affordable Loan Options
The lenders on the panel we work with offer numerous affordable loan options and you can access these from one loan application.
- You Could Get Funds Paid Within Hours
You could apply for a loan with our help and if approved, sign up online and the money may be paid into the bank account within hours.
Making Sure You Are Eligible For A Loan
Applying for a loan is easy and quick but some general criteria need meeting and this includes:
- You do need to have a regular income and be able to verify it;
- You should be at least 18;
- A bank account in the UK is required which has a debit card attached to it;
- The lender will want to set up a direct debit to take back the loan repayments so the bank account needs to allow the creation of a direct debit.
If you are eligible to make an application for a loan in the UK by meeting the above the criteria you can go ahead and make an application. Give us your details and tell us how much you want to borrow and we can search within minutes with a huge panel of lenders, giving you an instant decision.
The lenders we work with will want to check your credit file but they also consider verifiable income and affordability. So do not waste your time searching for no credit check loans no guarantors alone, allow us to help match you with a lender.