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11 Oct 2019

Learn How to Access Loans without Credit Check or Guarantor in the UK

Having a poor credit rating can be very disheartening, more so when financial institutions reject your loan applications during financial emergencies. Even for small loans, these institutional lenders will demand that you have a good credit rating and a co-signer and even then, you are not guaranteed approval. So what becomes of people with poor credit rating and no co-signer? Is all hope lost? Certainly not.

Numerous modern lenders understand that having poor credit does not mean you lack the will and ability to repay a loan. This is why they are willing to extend their loan facility to people with bad credit and no guarantor. Their loans have quick approval and are more flexible as compared to those offered by traditional lenders.

Urgently in Need of Money? What are Your Options?

Despite our best efforts we cannot always be fully prepared for all life eventualities. Emergencies such as medical bills, car repair, house repair or tuition fees are a common reality to every UK resident.  When you are faced with a financial emergency, what are your options?

  • Borrowing from family and friends. You may not have to pay back the money with interest as with formal loans. However, you may need to expose your financial woes to other people. You might also burn significant bridges if you disagree with your lender about the money.
  • Join a credit union. Since they are mostly nonprofit, their membership rules are less strict. They, however, might be reluctant to loan you the money you need urgently.
  •  Using collateral. You can use your house or car as collateral to get a loan from the bank or other financial institutions. Be careful with this option because the lender may auction the collateral if you have repayment problems.
  • Finding a guarantor. This involves getting a person with a high credit score to assume your risk. Since they are obligated to pay the loan when you fail to pay, most people rarely agree to cosign. Even if you do find a cosigner, you might have a problem consolidating all their documents in time.

Unfortunately, these options are not available to everyone particularly if you do not have a good credit rating. This is when to consider loans without credit check or guarantor.

Loans without Credit Check or Guarantor

This is another alternative birthed by the advent of modern lenders. These direct lenders use different methods to evaluate your creditworthiness. As such, they can give you a quick short-term loan when you need one as long as you can afford it. The market for these loans is now more competitive as numerous lenders are available. As such, you can get better repayment terms and have more choices.

These modern lenders rely on aspects such as your employment status or any other form of current income to judge your creditworthiness. Furthermore, they can give you a loan customized to your financial situation.

How to Apply

The process is as easy as filling out an online application form on the lender’s website. The lender will then review your application and, if you are eligible, approve your application swiftly. In some instances, the lender might approve your loan application within 10 minutes. Most applications are processed within the same business day giving you better chances of solving your financial challenges.

For your application to be approved, you must:

  • Be 18 years of age or above
  • Have a permanent UK residence
  • Have a valid bank account where your funds will be deposited

As the lenders might be numerous, you might have a hard time choosing one who gives you a lucrative deal. Use the following aspects to compare and pick between them:

  • Interest Rates

It is common for loans without credit check or guarantor to feature high APRs as the lenders take on a huge risk. However, such interest rates vary between several lenders and you should pick the least expensive one.

  • Terms of Repayment

Check whether you can manage to repay the loan even with your other financial obligations. It is ideal to verify that the lender has friendly terms as well.

  • Lender Reputation

Some lenders look to take advantage of your already compromising financial situation. They might trap you in a vicious loan cycle and you should as such verify their credibility.

When problems strike and you have bad credit, you might fear the worst knowing that it might be next to impossible to acquire a loan. This catch 22 situation might even be more difficult for you if you cannot find someone to cosign a loan for you. However, you can still access loans without credit checks or guarantor. At Bonsai Finance we can help you locate the best lenders within the UK to suit your financial situation. Contact us today to learn more about personal finance options available for you.