If you find yourself in need of a loan but your credit rating is not perfect a guarantor loan might be a suitable choice. However, if you are opposed to applying for a guarantor loan you might want to check out fast loans no guarantor needed and there are two popular choices:
- The payday;
- A Short-term loan.
Why Not Take Out A Guarantor Loan?
Guarantor loans can allow people with poor credit ratings the chance to borrow but they can be a bit of a bind to people and many things put people off from applying for them, including:
- You have to have someone who you would be willing to stand as your guarantor;
- You have to pluck up the courage to talk to them about your finances and tell them you cannot get a loan on your own;
- You run the risk of having ill feelings in your relationship or friendship if they don’t want to be a guarantor;
- Friendships and relationships can be ruined if you fail to repay the loan, as the guarantor has to take it over.
When considering all of the above it is easy to understand why people with a poor credit rating might want to avoid applying for such a loan. Luckily, there are alternatives if you want fast loans no guarantor needed and these include the payday and short-term loans.
Payday and Short Term Loans Both Pay Out Small Cash Sums Fast
If you are faced with a sudden financial emergency, such as a final demand bill, forgotten direct debit or you need cash to finance repairs, you will need a loan fast.
By fast, this means the same day or the next day. You do not want to have to wait hours or days for a decision and then wait a few more days, or longer, to have the money paid into your account. If met with a financial emergency you need a loan that pays money into the bank on the same day, often within hours of your applying and being approved. This is generally what lenders offering payday or short-term loans offer. Even better, both loans pay a small cash sum, so you do not have to have the backing of a guarantor, even if your credit rating is less than perfect.
To be eligible to apply you do have to meet the following criteria:
- You are 18 at least;
- Live in the UK;
- Have a regular income;
- A bank account with a debit card;
- A direct debit can be set up on the bank account to repay the loan.
A regular income means money that comes into the household on a regular basis. Lenders usually consider all circumstances so if you are unemployed but have a regular benefit paid into your bank you might still be eligible to borrow.
What Is Involved With A Payday Loan?
If met with an unexpected bill or repair, funds from a payday loan might be sufficient to cover it. You could apply for £100 to £500 and have the money paid into the bank fast if approved, even with poor credit hanging over your shoulder.
The reason that you do not need a guarantor and lenders consider you even with a poor credit rating is that the loan is a small one and you will be paying it back very quickly.
Pay Off the Loan between One to Three Months
Payday loans are loans that are repaid within one to three months, on your paydays. For instance, if you find you have gone into an unauthorised overdraft and you would not be able to get out of it for another three weeks, the bank would add on high fees. It could finish up costing you a fair sum of money.
In this instance, you might apply for a payday loan and agree to repay the loan on your next payday. The amount of interest on the payday loan is generally lower than the bank fees. This is only one example where a payday loan could work to save you money in the grand scheme of things.
What Is Involved With Short Term Fast Loans No Guarantor?
The short term loan is another loan that pays out fast giving you the money when you need it but it is more flexible in repayments.
While the short term might differ between lenders, it is generally up to one year. This means loan repayments are paid monthly for up to 12 months, the lender will take the monthly repayment by direct debit, and the loan is cleared within a year.
We work with a panel of lenders who may be able to offer you short-term loans of up to £5,000 and allow you to spread it out over 12 months if needed, or somewhere in between.
Pay the Loan Early to Pay less Interest but Watch out for Early Repayment Fees
When considering loans of this type check to make sure you have the freedom to repay the loan off early if you want. For instance, you might take the loan out over 36 months but then find you have the money to pay it off earlier. You can benefit from this, as you would pay less in interest. However, if the lender put a stipulation on the loan that you have to pay an early repayment fee you would lose any savings you might make paying up the loan early or save very little.
Even though your credit rating may not be at its best, there are still choices when it comes to borrowing. If you require a small amount of cash quickly, fast loans no guarantor needed are available thanks to payday and short-term loans. We work with UK lenders offering affordable loan options with competitive rates and take all circumstances into account.