Guarantor loans are one type of loan that anyone with bad credit might find getting approval for relatively easy. However, not everyone wants to take out a guarantor loan. Perhaps you do not want to broadcast the fact that you have a poor credit rating, or maybe you do not have anyone you feel could stand as a guarantor. In this case, you might be wondering how easy it is to find loans without a guarantor.
In fact, if you decide to apply for a loan with our help it is easier to apply for loans with a panel of lenders, regardless of your credit score.
Can I Apply for Loans Without Guarantor Even With A Poor Credit Rating?
People with a bad credit rating may have been led to believe the only type of loan they might be approved for is a guarantor loan but this is not the case.
Your credit rating is going to factor in when you apply for a loan due to the fact that UK lenders do have to look into your credit file before they approve a loan. There is no getting around this fact, but some lenders perform a soft credit check while others perform a more detailed credit check.
One thing that stands Bonsai Finance apart is that we work with a panel of lenders who not only look into your past and credit history but also take into account your ability to be in a position to repay the loan. This means you can apply for loans such as Payday, short-term or personal loans. Of course, we cannot guarantee that you will get approval, but we can search with a vast panel of lenders to try to match you with a lender, just by making a single application.
The Types Of Loans You Might Want To Consider
The main types of loans available are:
- Payday loans;
- Short-term loans;
- Personal loans.
The three different types of loan above are all loans that do not require a guarantor. This means you do not have to rely on someone else or ask someone to stand as your guarantor to borrow money.
Each of the loans differs, so you would have to choose the most suitable one for your needs. All loan applications can be conducted online so there is no requirement to undertake any paperwork or wait for a decision. If you are approved you might be able to get money paid into your bank account in a very short space of time, perhaps even the same day.
Let’s look at each of the loans and in what circumstances the loans work best.
The Payday Loan – £100 to £500
The payday loan is a loan you might want to apply for if you suddenly find you have a small sum of money to pay out before your next payday comes around.
With payday loans, usually between £100 and £500 is offered by lenders. The loan needs to be paid back quickly, generally between one and three months. The loan is called a payday loan as the repayments are made on your paydays.
The payday loan is usually classed as being an expensive way of borrowing due to the fact that interest is accumulated daily. However, in a short-term financial emergency, if the loan is repaid as agreed, it can work as it is designed to work.
Payday loans can be taken out in any circumstances where you need to get hold of money fast, which can often be paid into your bank account on the same day. This money could cover such as bills or repairs that suddenly crop up unexpectedly.
The Short-term Loan – £500 to £1,000
A short-term loan is generally repaid over the short-term, for instance up to 12 months, but this might differ between lenders and the amount borrowed.
The amount borrowed with a short-term loan is generally in the region of £500 to £1,000 but again this can differ depending on the lender and your credit score.
Short-term loans can come in handy if you need to get hold of money fast but cannot repay the loan in as little as three months. Spreading the cost over longer helps to keep the monthly cost of repayments down but overall you will pay out more in interest.
The Personal Loan – £1,000 to £5,000
A personal loan might be applied for if you want to borrow a larger sum of money, usually up to £5,000. You could spread the cost of the loan for up to 36 months.
The personal loan is usually an unsecured loan. This means you do not have to put something up against the loan as collateral. A loan that requires that you put something, usually your home, up against the amount you are borrowing is called a secured loan. Secured loans might be easier to get approval for than unsecured, but remember your home is at risk if you cannot manage the repayments. Secured loans are generally taken out if you are borrowing many thousands of pounds and want to spread the cost over numerous years.
Again, bear in mind that the longer you spread the loan over, the lower the monthly repayments, but the more you will pay in interest.
The APR on personal loans will have to be taken into consideration. This is the annual percentage rate. When repaying the loan the amount of interest is calculated and repaid along with the amount you borrowed. Generally, a lower interest rate means the loan will cost you less overall.
Also, consider any fees that may be added onto the loan along with early repayment fee if you find you can repay the loan early. While repaying the loan early means you do not pay as much interest, the fee may mean early repayment does not allow you to make savings.
Do You Meet The Criteria For A Loan
To be able to apply for a loan in the UK you will need to meet certain criteria. This generally includes:
- Being a resident of the United Kingdom;
- Having a regular income from work or benefits;
- Holding a bank account in the UK;
- Being over the age of 18;
- Having a debit card attached to your bank account;
- Holding a bank account that is capable of having a direct debit set-up.
While you do have to have a regular income coming in each month, this does not mean you have to be in work in order to be approved for a loan. Providing you have a regular payment going into a bank account each month, you are eligible to apply for a loan.
Applying For A Loan
Applying for a loan with our help is easy. All you have to do is choose how much you would like to borrow and how long you want to repay the loan over.
You will then be asked to fill in some details and tell us how much you have in income each month and how much you have going out. From this, the panel of lenders we work with will be able to determine if the loan you are requesting is affordable.
We will try to match you up with a lender and if one lender is not able to give you a loan, we will move onto the next and so on.
If a lender approves the loan, you can look at the details of the loan in detail, including how much you will have to repay in total, including any fees and interest. If you go ahead with the loan, you can sign up for it, and the money may be paid into your bank account on the same day.
You then make the repayments on time until the loan is repaid.
Why Choose Us To Find A Loan For You?
Finding a loan is not the easiest of tasks to undertake and more so if your credit rating is less than perfect.
Many lenders will shy away from anyone who has a poor credit score seeing them as being a bigger risk than someone with a perfect score, especially if that person is looking for loans without guarantor. However, we work with a panel of lenders so we can try to match you up with a lender. If one lender turns you down, we can move on to another lender. This is all possible when you make one single loan application.
This means you do not have to search for lenders yourself, keep typing in your personal information and details and have the search recorded on your credit file. Many searches on credit files go against you.
From your information, the amount you want to borrow and the term you want the loan over, we can match you up with the most suitable lender. Lenders in the UK do have to consider your credit rating to ensure that the loan is repayable. At the same time, they will also determine if they think you can afford the loan based on what you have coming in each month and what you have going out.
If you want to avoid loans without guarantor but your credit rating is less than perfect let us match you up with one of our panel of lenders. Our lenders offer numerous loan options along with competitive rates, even for those with a less than perfect credit score. They offer affordable personal loans based on verifiable income along with payday loans and short-term loans. The application process is fast and easy and you will know within minutes if you have been approved.