Short-term and payday loans are two types of loan that people with bad credit ratings find easier to get approved for. However, not everyone wants to be beholden to a third party or bring up the fact that they cannot get a loan on his or her own. This leaves them wondering about other loan options and thankfully there are alternatives out there. However, the question here is whether it is possible to get unsecured personal loans bad credit no guarantor. So, can someone with bad credit get an unsecured personal loan without needing a guarantor, read on to find out.
What Is A Personal Loan?
A personal loan is a loan taken out to be used for personal uses, such as paying for a holiday that is long overdue or so on. The loan does not require that you have a guarantor standing behind you and you can apply for the loan online.
Lenders allow you to borrow larger sums of money that what might be offered with short term or payday loans. Sums of up to £5,000 might be borrowed if you apply for your loan with our help.
The personal loan is often spread out over a long period giving you ample time to pay it off with an affordable monthly repayment. Lenders we work alongside generally allow you to repay up to 36 months. This means the loan is not going to be hanging over your neck for a large number of years but it is still a long enough time for the loan to be affordable.
This type of loan is often called an unsecured loan or unsecured personal loan as it does not require you to put anything up against the loan as collateral. This is the opposite of a secured loan. With a secured loan, you would have to put your home or vehicle up against the amount borrowed and be at risk of losing it.
When taking out a personal loan you should check the APR of the loan. This is the annual percentage rate and is what determines how much interest you will pay on the loan over the term.
While taking the loan out for a longer period can make the monthly repayments more affordable also consider the fact that you will pay more out in interest.
While it is crucial that the monthly repayments are affordable you also do not want to take the loan out for longer than necessary and pay more interest than need be.
Another factor to consider with payday loans is whether the lender includes an early repayment fee in the terms and conditions of the loan. This would be a fee that you have to pay in the event you found yourself in a position to be able to repay the loan earlier than anticipated. For instance, if you took the loan over 24 months but found you could pay it off within 12 months. By doing so, you would save interest but would have to pay the fee, which could outweigh or severely cut down any savings you might make.
Are Unsecured Personal Loans Bad Credit No Guarantor Easy to Get?
Because you are asking to borrow a relatively large sum of money, up to £5,000, the lender is going to want to look into your credit rating deeper than they might if you only want to borrow a small sum of money.
If your credit rating is very bad, you might be better off applying for a guarantor loan or consider asking to borrow a smaller sum of money with a short-term loan.
With this being said, personal unsecured loans without a guarantor are not the easiest of loans to find approval for if your credit rating is poor, but not impossible.
Lenders Will Consider Your Current Circumstances
We do work alongside a huge panel of lenders who will consider your current circumstances along with your credit rating when looking for unsecured personal loans bad credit no guarantor. They know that your situation might have changed drastically from when you obtained a poor credit rating and will consider this.
They will make an affordability check. This means they will want to know what money you have coming in each month and what you pay out. Providing there is ample money left over, there is no reason why they should not consider your application. Of course, this does not mean that you are guaranteed to get the loan.
Why You Might Want to Apply for a Loan with Our Help
Finding lenders willing to offer large credit sums if you have a poor credit rating is never going to be the easiest of tasks. You might consider making a search online on your own only to find yourself turned down time after time. This is where we here at Bonsai Finance can step in and help.
We Work With a Huge Panel of Lenders
We do not offer loans ourselves. Instead, we work alongside a panel of lenders from the UK who considers all circumstances and who offer affordable loans with some of the most competitive rates.
From just a single application, we can search for a loan on your behalf with a panel of lenders. This means you do not have to make several searches yourself and have them all noted on your credit file. All we ask is that you:
- Are at least 18 when applying;
- Have a regular amount of income;
- Have a UK address;
- Have a bank account in your name;
- Have a debit card and a direct debit can be set up.
Providing you meet the above criteria there is nothing stopping you from applying for a loan, whether this is a personal loan or any other.
We can help you to find unsecured personal loans bad credit no guarantor and it only takes a few minutes to apply. Within minutes, you will have a decision and you get access to a wide range of lenders offering numerous loan options and the best rates on loans. Just tell us how much you want to borrow and when you want to pay it back and we will do the rest.