No guarantor loans do have a place in the loan market but they are not everyone’s idea of the ideal loan. They can help people with poor credit ratings to secure a loan of thousands of pounds but they are not suitable for everyone. However, there is no need to worry if you want a loan and this is not the loan for you, as we are going to explore the different types of no guarantor loans UK.
Loans you might want to consider include:
- Personal loans;
- Short term loans;
- Payday loans;
- Secured loans.
The Different Types of No Guarantor Loans UK
There are loans for all circumstances and needs so there is sure to be one suitable for your needs whether you have a good or bad credit score.
First, let us look at loans that you might want to apply for if you have a good credit score and you want to borrow thousands of pounds.
Is Personal Loan Suitable?
If your credit rating is good, the world is your oyster in regards to loans and you will be the lenders best friend. This means you are more likely to get a personal loan with the lowest rates of interest and best deals possible.
If you want to borrow in the region of £5,000, we work with lenders offering the most competitive rates of interest and they allow you to spread the cost of borrowing for up to 36 months.
The amount of interest accumulated on the loan is dependent on the APR, with generally the lowest APR adding on the least amount of interest over the term.
If you have a poor credit rating, it does not mean you cannot get a personal loan but it is usually more difficult to find approval.
Luckily, there are alternative options to personal loans, which are often easier to find approval for if your credit rating is less than perfect, so we will look at these below.
Short-term Loans without a Guarantor
Short-term loans may be more suitable for anyone with a poor credit rating to apply for but they do not offer the huge sums of money that may be available with the personal loan.
Generally, lenders will allow you to borrow between £500 and £1,000 with a short-term loan and spread the cost of the loan for up to 12 months. This is going to be dependent on the lender and your circumstances.
The APR determines the interest added onto the loan. While spreading the loan out over a longer period can help to keep the monthly repayments down, you are going to pay more in interest the longer you take the loan over.
Payday Loans or Same Day Loans
Payday loans are often called same day loans due to the fact they are extremely fast to apply for and if approved funds from the loan are often paid out within hours.
Payday loans are no guarantor loans UK and usually offer between £100 and £500 so they can be a great choice for anyone who has found him or herself in need of money to tide them over until their next payday.
When this type of loan came onto the market, they were only taken out until the following payday. The loan was paid in full including interest on your next payday, usually one month. Today lenders will allow you to spread a payday loan over up to three paydays. This means the loan becomes more affordable but on the downside, it also means you pay more in interest the longer you spread it over.
With payday loans, it is essential that you know without a doubt that when payday comes around you can afford to repay the loan or a share of it. Payday loans did get a bad name in the past as being an expensive way of borrowing. However, this was mainly due to people rolling them over continually, which meant the loan gained more and more interest and fees. Providing they are taken out and repaid as agreed, they can work as intended.
One thing to consider about payday loans is the APR. The APR will be presented as thousands of percent. You do have to bear in mind that this is the annual percentage rate. This is the amount of interest you would pay over the year. However, as you are only borrowing for one to three months, you are not going to pay such a huge amount of interest.
We have left secured loans until the very last as they are not one of the most popular types of loans. While they do not require you to ask someone to stand as your guarantor, they do require that you put something up against the money you want to borrow, such as a vehicle or property.
In the event that you cannot afford to repay the loan the lender can take you to court to seek possession of whatever you secured.
Secured loans may be one way that people with poor credit ratings can borrow thousands of pounds but they do need to be given some serious thought.
We Can Help You Find a Suitable Loan
We can help you to find a suitable loan for your need. While this is not the only way to find a loan, it is one of the easiest and quickest ways.
With our help, you can get an instant decision on a loan and have access to a wide panel of lenders. You make just one application and we can try to match you with a lender. If the first lender cannot offer you the loan you need we simply move to the next lender and so on.
The lenders we work with offer no guarantor loans UK that have some of the lowest rates of interest and along with considering your credit file they also consider your current circumstances. Apply today; you could have funds from the loan paid into your bank account the very same day.