One type of loan that people with poor credit ratings stand a good chance of being approved for is a guarantor loan. However, there are many downsides to this loan and it is not suitable for everyone. With this in mind, if you are looking for a loan and you have a less than perfect credit rating and do not want a guarantor loan you might be asking the question, what are the different types of loans no guarantor needed?
This is a question that we aim to answer right here. We are going to explain the different types of loans no guarantor needed, bad credit rated individuals might apply for and be approved more easily.
We shall talk about:
- The types of loans people with bad credit might apply for;
- The differences in the loans;
- Eligibility factors for loans;
- How to apply for a loan with our help.
What Types Of Loans No Guarantor Needed Are There?
Three of the most popular types of loan that don’t require a guarantor are the payday, short-term and personal loans.
Out of the three, those with a less than perfect credit score are more likely to be approved for the first two types of loans as they offer smaller sums of money.
That is not to say that people with poor credit ratings cannot get a personal loan. Just that this type of loan is generally more difficult to find approval for than others might.
On a lighter note, we do work with lenders who will consider all circumstances, who will take into account affordability of those applying, along with checking their credit ratings.
What Are The Differences in Loans No Guarantor Needed Bad Credit?
There are some big differences in the loans offered and these differences will determine which type of loan might be most suited to your needs.
We have already determined that the payday and short-term loans are easier to get approval for and this is down to the fact that lenders will not be taking such a big risk, as you will only be applying for a small sum of money. However, you still might want to consider a personal loan depending on your rating, and how much you want to borrow.
How Much Can I Borrow?
With the payday loan lenders usually offer between £100 and £500, while with a short-term loan this might be between £500 and £1,000. The personal loan generally offers up to £5,000 but is dependent on the lender.
How Long Can I Take To Repay?
Lenders generally allow you to repay the short-term loan for up to 12-months, but this does depend on the lender, with some perhaps offering slightly longer.
With the payday loan, the amount of time you repay it is usually between one and three paydays. This makes it a one to three month loan as the majority of people are paid on a monthly basis.
A personal loan has the longest term as it might be repaid over a period of up to 36 months.
Interest Rates on Loans
APR on loans is usually calculated on a yearly basis as this stands for annual percentage rate.
This rate may apply to the short-term loan, and it is applied to a personal loan, so it can pay to compare APR on these loans. The lowest APR usually means the lowest amount of interest is added onto the loan, therefore the loan costs less in total.
This differs with payday loans as the loan is taken out for just a month or two. Therefore, interest is added onto the payday loan on a daily basis. Again, this means the longer you take to repay the loan the more it will cost in total. This should be considered when weighing up how long to spread the loan over. Along with this, it is important to consider the fact that payday loans can be an expensive way to borrow if you have to roll the loan over due to not being able to repay it.
Eligibility for All Loans
All loans come with eligibility requirements. These are typically:
- You are 18 at least;
- You have an address in the United Kingdom;
- You have a regular income coming in each month;
- You have a bank account in the UK along with a debit card;
- The bank account can have a direct debit set up on it.
How to Apply For Your Loan with Our Help
There are two ways you can look for loans no guarantor needed bad credit. You can search blindly yourself to try to find a loan. In this case, depending on how bad your credit is, you might have to apply numerous times before being approved.
These searches will appear on your credit file and can go against you obtaining further credit in the future.
Alternatively, you could take the easier option and that is to apply for a loan with our help.
We are not direct lenders. Instead, we work with lenders offering the most affordable loans and competitive rates of interest to people wanting no guarantor loans who have a less than perfect credit rating.
To apply you just need to tell us the amount of money you would like to borrow and the term you want to take the loan over.
We will then know whether to search for lenders offering payday loans, short-term loans or personal loans.
After providing us with a few details, you will be given an instant decision and if we can match you with a lender, you can then go ahead and check the details of the loan to make sure it is right for you.
If the loan is suitable, you can sign up with the lender and they will arrange to pay the money into your bank account. In some cases, this could be within hours of you applying for the loan.
If you are in the market for loans no guarantor needed bad credit accepted, there are options open to you and we can help to bridge the gap between lenders and you. All lenders offer affordable loans no guarantor needed, bad credit rated individuals can apply for. Find out how much you might be in a position to borrow today, you get an instant decision with fast payouts.