No one is totally immune to financial emergencies. Worst of all, they tend to come up when we are least prepared. Long days in between jobs, increasing debt, medical emergencies and other issues are part of life. If and when you find yourself in such a situation, getting a loan can offer you much-needed relief. However, more often than not, you need to have a pristine credit record and a guarantor to co-sign. If not, you need to explore other alternatives.
It is for these reasons that direct lenders now offer loans no credit check or guarantor in the UK. They offer people in tight financial situations a way to get financial help quickly, without a credit check process and with no obligation to have a guarantor. It is no surprise therefore that they are so popular.
Benefits of Loans No Credit Check or Guarantor
It is important to note that lenders are legally required to check your credit when lending. However, lenders, in this case, perform a soft credit check where your credit score is not the sole determiner whether you get the loan or not.
The Application Process is quick and Easy
The last thing you want during an emergency is to be subjected to a long and cumbersome process only to be declined. Additionally, contrary to previous years where you had to travel to the lender’s office to apply, most lenders now have online systems that support loan applications. Applying for a loan now only requires you to fill an online form providing the lender with mandatory details, submitting it and waiting for a response. In most cases, the lender reviews the application immediately and disburses the funds in the designated bank account within a few hours after submitting the application.
No Credit Check
Having a bad credit record can happen to anyone. Unfortunately, traditional lenders consider people with poor credit as risky and therefore deny them credit. Direct lender, on the other hand, is not limited to your credit standing. They take a broader look at your financial situation and your ability to repay the loan you are seeking. For this reason, they only perform a statutory soft credit check and approve loans to borrowers regardless of the credit standing.
You Do Not Need a Guarantor
Traditional lenders require that you have a qualified person to so sign your loan as a guarantee for repayment. For most people, it is not possible to find a responsible person willing and able to co-sign a loan. Additionally, a majority of borrowers prefer to keep their financial situation private and do not want to involve guarantors. As such, these loans with no credit check or guarantor provide a lot of borrowers a convenient way to access funds even if they do not have a co-signer.
No Need for Collateral
On top of having a guarantor, most traditional lenders also require you to provide collateral for the loan. However, loans with no credit check or guarantor also have unsecured options for people who do not have or are not willing to provide collateral for their loan. Although this might mean that your interest rates might be slightly higher, the convenience of such loans outweighs the cost.
Lenient Repayment Schedules
Providers of loans with no credit check or guarantor understand that people taking up these loans are undergoing tough financial times. In most cases, they are in financial emergencies. As such, they only provide a small amount enough to give you some relief in your situation. On top of that, they provide borrowers with flexible repayment schedules that do not overburden them during and after the situation. This also encourages the borrowers to honour the repayment schedules which in turn improves their credit performance and builds their name with the lender for future consideration.
Providers of loans no credit check or guarantor transform all your negatives into positives and promising realities. Even with bad credit standing and no guarantor or collateral, you can still access a loan, quickly and conveniently. This is the true utility of these loans for people undergoing tough financial situations.
At Bonsai Finance, we are committed to helping people achieve financial freedom and security by connecting them to the right financial solutions. Through our experience and technical expertise, we can help you get the best provider for loans with no credit check or guarantor in the UK. Talk to us today and let us help you take control of your financial future.