Anyone who has a bad credit rating who has applied for credit in the past will probably know how difficult it can be to get a loan. While lenders will bend over backwards to offer thousands of pounds to people with good credit ratings, people with bad credit ratings are cast aside. So is it possible to get bad credit loans no guarantor no credit check needed? We are going to look into the options available to people with poor credit ratings so you can make a more informed decision about a suitable loan.
We are going to look into the following aspects of loans for people with a poor credit rating, these include:
- What are bad credit loans?
- The different types of loans available;
- Which loan might be better for your needs;
- Whether it’s possible to get a loan without a credit check;
- Why lenders check your rating;
- Applying for your loan.
What Are Bad Credit Loans No Guarantor No Credit Check?
First, we will address what bad credit loans are. To begin with, we will tell you that there is not a specific type of loan with the name of bad credit loans.
Lenders do not specifically offer a loan aimed at people with poor credit ratings. People with poor credit ratings can apply for the same loans that people with good credit ratings do.
The main difference is that there is almost guaranteed approval if you have a good credit rating, while with a poor credit rating it can be more difficult to obtain approval.
We Work With Lenders Who Take Verifiable Income into Account
Luckily, there are lenders who will take verifiable income and affordability into account.
We work alongside a panel of such lenders. While there is no guarantee you will be approved, you stand a good chance if you can prove you can afford the loan.
What Are Non-guarantor loans?
Non-guarantor loans are loans that do not require you to ask someone to stand as your guarantor.
With a guarantor loan, you have to talk to someone about your finances and the fact you cannot get a loan on your own back. This is not always suitable, as many people do not like to talk about finances or put the burden on someone else.
Popular Types of Non-Guarantor Loans for Bad Credit
So, what types of loans might people with poor credit ratings be able to get? One is a guarantor loan but if you have decided you do not want this type of loan, there are other options.
The Payday Loan for Small Sums of Money
One popular type of loan that people with poor credit ratings often apply for is a payday loan.
A payday loan may be a good choice of loan for anyone who only wants to borrow a small sum of money. Lenders class a small sum as being in the region of £100 to £500.
Payday Loans for Emergencies
The majority of payday loans that are applied for are used for financial emergencies that may have cropped up.
- People apply for this type of loan to cover an unexpected bill that has cropped up and you cannot wait for next payday;
- You might use it if your vehicle unexpectedly breaks down and you do not have the money for repairs;
- A payday loan might come in handy if you have gone into an unauthorised overdraft and are faced with having to pay high bank charges until your next payday;
- You could even use money from a loan to pay for repairs for unexpected breakdowns to such as your fridge, freezer or cooker.
These are just a few examples of common reasons why people apply for payday loans but they can be applied for, for just about any reason.
Term of the Loan and APR
When applying for a payday loan you choose how long you want to take the loan over.
You can repay the loan back in full with interest on your next payday or spread it out over three paydays. When considering this, the longer you take the loan over the more it is going to cost in interest as interest is added on daily.
When you see the APR on payday loans, it can be shocking, as it is often shown in thousands of percent. What you do need to take into consideration is that the APR is the interest rate over the year. In fact, you are repaying the loan in a much shorter term, between one to three months. Therefore, the loan is not going to attract the APR shown.
Interest will be charged on a daily basis, so the quicker you pay off the loan, the less interest it accumulates and the less the loan costs in total.
The lender will want to know the dates that you are paid, as this is when they will take the repayment from your account. If you chose to repay over three months the lender will take a payment from each of your three next paydays. You should have budgeted for this so there is enough money and you are not going to leave yourself short when the paydays come around.
The Short-term Loan for Short Term Borrowing
Another loan that is popular with people looking for bad credit loans no guarantor no credit check is the short-term loan.
With the short-term loan lenders generally offer between £500 and £1,000. This is still considered to be a small sum of money by most lenders but you can spread the cost of the loan out over a longer period that with a payday loan.
As the name suggests short-term loans are repaid over the short term. What lenders class as a short term could differ, however, usually this is up to 12 months.
Again, it makes sense that the longer you take out a loan the more than loan will cost in total. When considering this it pays to apply for the least amount of money you can and take it over the shortest term possible. Of course, you also have to make sure the monthly repayments are affordable, as is the total amount of loan with interest added on.
Before applying for your loan, it can pay to sit down and write down what money you have coming in each month and what you pay out. This helps you to determine yourself how affordable a loan would be and how much you might be able to afford to borrow without stretching your disposable income too thin.
The Personal Loan
There is a personal loan and this type of loan usually offers up to £5,000. However, it is more difficult to be approved for a loan of this type if your credit rating is poor.
On saying this, we do work alongside a large panel of lenders who will consider all circumstances and verifiable income.
Personal loans may be spread out for up to 36 months allowing you plenty of time to repay a larger loan with affordable monthly repayments.
When considering personal loans you have to compare APRs. With a bad credit rating, you are not going to be offered the lowest APR. However, we work with lenders who do offer some of the most competitive rates on loan and numerous loan options.
The lowest APR usually means the cheapest loan but you also have to take into account any fees that may be added onto the loan, such as early repayment fees.
An early repayment fee may be applied to the loan if you find yourself with extra cash and you can afford to pay off the loan early. While you can save interest on the loan this way, the amount saved could be lost if you have to pay a fee to clear the loan early.
Is It Possible to Get Loans Without a Credit Check?
One thing that worries people who have a bad credit rating is whether the lender will check their credit file and turn them down.
One of the first questions they ask is if lenders always check credit files. The answer to this is yes, at least all ethical lenders will in the UK.
Why Lenders Make a Credit Check
Lenders will make a credit check. The lender does this to determine how big a risk you might be. If you have CCJs on your credit file, late or missed repayments or you owe a lot of money to credit cards and other loans, you may be classed as being a big risk.
You might have been late with one or two repayments and have a mark on your credit file but your circumstances might now have changed and you are more financially responsible.
The lenders we work with will check your credit file to some extent; however, that extent depends on how much you want to borrow. The lenders on our panel will also take your income and outgoings into account along with loan affordability.
If you are only applying for a small loan, say a payday or short-term loan and you can show you can afford the loan; there is a good chance of obtaining approval.
How to Apply Online For a Loan
One way of applying for a loan is online. You could use a search engine and make a search yourself but this takes time and you might end up making many searches and applications before finding a lender, even if you find one.
There is an easier way to find a loan. We help to bridge a gap between lenders offering loans and people who want to borrow.
One Application Search with Multiple Lenders
One of the biggest benefits to finding a loan with our help is that we can search with multiple lenders and you only have to make one application.
Competitive Rates and Affordable Loans
We work alongside a large panel of lenders all of whom offer competitive interest rates and affordable loans.
Criteria for Applying for a Loan
We only need to know that you:
- Are at least 18 years old;
- Live at an address in the UK;
- Hold a bank account in your name;
- Have a debit card attached to the account;
- The bank account has the ability to accept direct debits.
If you meet this criterion, you can apply for a loan with our help.
Tell us How Much You Want to Borrow
All you have to do now is tell us how much you want to borrow and how long you want to take to repay the loan.
Lenders that we work alongside offer loans from £100 to £5,000 repayable from one month to 36 months.
We will then search with a panel of lenders and provide you with an instant decision. The entire loan application can then be made online and you can check out the details of the loan before signing up.
If approved the lender may pay the funds from the loan into your bank account the very same day and often within a period of just hours.
Apply for your loan today
Providing you meet the criteria to apply for a loan in the UK you can make an online application.
The biggest benefit is the stress and time it saves you when compared to looking for a loan on your own. We provide easy access to numerous UK lenders who will consider all cirumstances and verifiable income. You may be able to get a loan with a poor credit rating, if you can prove the loan is affordable.
Apply for bad credit loans no guarantor no credit check needed today with our help, to get access to lenders offering stress free fast loans. Applying for a loan is quick and easy with the entire loan applicaiton being undertaken online.