People obtain a poor credit rating for many reasons and while you might have earned a bad rating many years ago, it takes some time to restore your rating to good form. In the meantime, if you wish to take out a loan without having to ask someone to stand by your side and sign for the loan with you, you might find it difficult. Luckily there are options for loans for poor credit no guarantor and here we are going to look at those options.
Applying online for a loan is the quickest way to determine if you can borrow money with a poor credit rating. There is no waiting around for approval as everything is undertaken online and you know within minutes if you have approval. It takes minutes to complete the application with just a few details and if approved money is paid into your bank account fast, often on the same day.
What Are the Options for Loans for Poor Credit No Guarantor?
There are some alternatives to the guarantor loan for people with poor credit. One type of loan that people with bad credit typically apply for is a payday loan. Another popular type of loan is a short-term loan. Several factors will determine whether you might be able to get a personal loan, including your income and outgoings.
There are lenders who realise that your circumstances might have changed from many years ago when you fell behind on a couple of payments or earned a CCJ. The panel of lenders we work with will look into your income and outgoings to determine if they think the loan is going to be affordable to you.
Why You Might Want To Consider a Payday Loan
Payday loans are among the easiest to find approval for thanks to the amount of money borrowed being small and you are agreeing to repay the loan within one to three months. Usually, lenders offer between £100 and £500 with payday loans but this is at the lender’s discretion and your income and outgoings will to some extent; determine how much you can borrow.
When applying for a payday loan, you can choose to spread the repayments over three paydays or pay it back on the next payday. This may be a suitable option for people who have a very bad credit rating and want to borrow a small amount of money.
Why Choose A Short-term Loan?
With the short-term loan, you might be able to borrow between £500 and £1,000, depending on the lender.
As the name suggests the short-term loan is repaid within a short time-frame and this is generally up to 12 months. This enables you to spread the cost of borrowing to ensure the loan is affordable but the longer the term of the loan the more it is going to cost you overall with interest added on.
Short term loans are popular and in 2018 around £4 billion was given out in short term loans by lenders in the UK.
You Might Be Eligible For A Personal Loan
Your credit rating along with the amount of money you have coming in each month and what you have to go out is going to determine whether you might be approved for a personal loan.
A personal loan does not need a guarantor and this is an unsecured loan so your home is not at risk. It allows you to borrow up to £5,000 spread out for up to 36 months. As the sum of money is generally more than with the short-term or payday loan lenders are stricter when approving loans.
Choose Your No Guarantor Loan with Our Help
Bonsai Finance is not a lender. Instead, we work alongside a panel of UK lenders offering numerous loan options. We can help to match you up with a lender and if you do not get approval from the first we will go to the next lender, all from you making a single loan application.