The title of this article is a real mouthful but it is a valid question that someone with a poor credit rating might ask if looking for a loan. More so if looking for a loan and you need to get your hands on the money fast. So is there such a thing as loans for bad credit no guarantor no fees instant decision?
The answer to the question would hinge on who you ask. For instance, if you make a search for a loan by yourself using one of the popular search engines you will more than likely come across those terms in the search results. However, what you are promised and what you can actually get are two different things entirely.
If you were to ask us that same question, we would give you an honest answer and break it down for you. Therefore, we are going to look at the following:
- Are there loans specifically for bad credit?
- Are there loans that you do not need a guarantor?
- Are there loans without any fees attached?
- Are there instant decision loans?
What are Loans for Bad Credit No Guarantor No Fees Instant Decision?
If there were such a loan, it would be one that is offered to people who have a bad credit rating and who do not want a guarantor to apply for the loan. The loan would also come without any fees at all attached and the person applying for the loan would be given an instant decision. So let us break this down and answer whether there are loans specifically for people with bad credit.
Are there Loans for Bad Credit?
This is one of the first questions asked by people with bad credit who are looking for loans.
Our answer to this is, there are no specific loans for people with bad credit but people with bad credit are more likely to get approved for certain types of loans than others. However, there is no guarantee.
For instance, a payday loan and short-term loan are both loans that lenders may approve for people with poor credit ratings. This is because there are limits to the amount you can borrow with both of these types of loans.
However, there is no definite guarantee that you will be approved for a loan. Approval is going to rely on whether the lender thinks you can afford the loan repayments.
Payday and Short-term Loans
With the payday loan, you can usually borrow in the region of £100 to £500. Lenders class this as a small sum of money so even if you have a poor credit rating they are not taking that big a risk. This type of loan generally has the biggest approval rate for people with poor credit.
Payday Loans are Paid Back in One to Three Months
The payday loan is usually repaid on your next payday but it is also possible to spread the cost of the loan out over three paydays. Essentially, this would make it a three-month loan. On the agreed date or dates, you would pay either all of the loan off along with any added interest or a portion of the loan with the interest incurred during the month.
Don’t be Fooled By Interest Rates
When considering payday loans you might be shocked to see the interest rate at thousands of percent. This is the reason why people say that payday borrowing is costly. However, it is important to bear in mind that the APR is an annual percentage rate and you are not taking the loan out over the year. Far from it, as you will be paying the loan back between one and three months. Interest on payday loans is usually added on daily so the faster you repay the loan, the less it will cost you in total.
The payday loan can work as it is designed to work, provide you with a helping hand until payday, providing you can afford to repay the loan as agreed. It is only if you have to roll the loan over, as you cannot afford to pay, that financial troubles begin.
Payday Loans Are Emergency Loans
Payday loans are usually considered emergency loans as they often pay out within hours if approved. They are commonly taken out to cover unexpected financial outlays, such as a large bill that cannot wait or repairs to the home, appliances or a vehicle.
Interest is usually added on to the loan daily, so the least amount of time you take the loan over, the less it will cost you in total.
Borrow Up To £1,000 Pay Back Up To 36 Months
With the short term loan, you can usually spread out the repayment for up to one year. You may be able to borrow in the region of £500 to £1,000 depending on your credit rating, and whether the lender considers it is affordable.
When considering a short-term loan you have to consider the APR, as this is the amount of interest by percentage that will be added onto the loan. Before signing for the loan check to find out how much the loan is going to cost you in total, including any fees if applicable and interest.
Are There Loans that do not need a Guarantor?
Yes, both the payday loan and short term loan don’t require you to ask someone to stand as a guarantor in order for you to be in a position to borrow. Depending on your credit rating, you might be eligible to apply for a personal loan and you don’t need a guarantor for this type of loan either.
There is a different type of loan that does not require a guarantor and this is a secured loan. However, with this type of loan you do need to secure something against the amount being borrowed, usually your home or a vehicle.
A guarantor loan can work under the correct circumstances but it is a loan that many people shy away from. While it is easier to find approval for it does come with downsides.
The biggest of these is that you need to find someone willing to stand as a guarantor. This means admitting to someone close to you, a good friend or family member, that your finances are in a mess and you cannot get a loan off your own back. It also means that friendship is at risk as if you cannot meet the loan repayments the person who stood as the guarantor has to take them over.
Are There Loans Without Fees?
No one likes to pay fees and more so when it comes to a loan. However, many loans do have fees attached. For instance, one type of fee is an early repayment fee.
The early repayment fee comes in if you find that you can repay the loan earlier than the agreed data. For instance, you might take a personal loan or a short term loan out over 12 months. You might be four months into the loans and have a sudden influx of money that means you can pay back the loan. This is all well and good if there is no early repayment fee. However, if there is, it might not be worth paying off the loan to save interest.
Another type of fee might be a broker’s fee, for help in finding you a loan. While this is something that you might want to avoid, there are numerous advantages to having someone search for the loan on your behalf.
For instance, if you allow us to search for a loan on your behalf the benefits include:
- We can search to match you with a lender who is willing to offer the type of loan you want based on your circumstances;
- You only have to make a single application to be able to search with a panel of lenders in the UK;
- We work with a panel of lenders who will take your current circumstances into account along with your credit rating;
- All lenders offer competitive rates of interest;
- Lenders that we work with offer affordable loans;
- Lenders offer numerous loan options;
- Lenders offer an instant decision;
- We can help save time and stress of trying to find a loan yourself.
Are There Instant Decision Loans?
Yes, there are instant decision loans. However, we do want to make it clear that an instant decision is not a guaranteed loan.
No lender will guarantee you a loan without having taken some details from you and peeking at your credit rating. All UK lenders will want to check your credit file, although if you are applying for a small loan, they will usually not look too deeply into it.
Put It All Together and What Do You Have?
If you put all of the above together, you have loans for bad credit no guarantor no fees instant decision. The only part of this that might not be true is finding a loan that comes without any fees attached. There are also no loans specifically for people with bad credit despite the fact that the payday loan and short term loan may be easier to get approval for than other loans might.
There are definitely loan options available that do not require you to have a guarantor by your side and you can get an instant decision so you know where you stand.
Apply for Your Loan with Our Help
Here at Bonsai Finance we have made applying for loans extremely easy.
To start your loan application just tell us how much money you want to borrow and the term you want to borrow it over.
Give us a few details and we will search within a panel of lenders from the UK. This means you only have to provide your details once to be able to access a panel of lenders. Therefore, there are no multiple applications noted on your credit file.
If we are in a position to match you with a lender, you can check the details of the loan and if you are happy to go ahead, you can sign up with the lender. The funds from the loan are paid quickly into your account, in some cases within hours.
Do You Meet the Loan Criteria?
All lenders state some criteria that have to be met before you are eligible to apply for a loan of any nature.
You have to be at least 18 years of age to be able to apply for a loan in the UK and you have to receive a regular income. By regular income, we mean money paid into a UK bank account on a regular basis, for instance each month. However, it does not mean that it has to be an income from work. Many lenders will also consider an income from benefits providing it is a recurring benefit.
Along with holding a bank account in the UK, you need a debit card attached to it and the bank account should be capable of having a direct debit set up so the lender can take the repayments back on the agreed dates.
If looking for loans for bad credit no guarantor no fees instant decision we can help you to find the most suitable loan for your needs. The lenders we work with will consider your circumstances and consider your ability to repay the loan along with checking your credit file. They offer a wide range of loans including payday, short term and personal loans and you might be able to borrow from £100 to £15,000 and spread the cost from 1 month to 36 months, depending on your credit status.