There are many types of loans to apply for when you want to borrow, but if you have a less than perfect credit rating; your options might be restricted. While your chances of being approved do increase if you apply for a guarantor loan, you might not want this type of loan. The good news is that there are loans without guarantor UK that you may be approved for even if you have a poor credit rating.
In the UK, two loans people with poor credit ratings find reasonably easy to be approved for are the short-term loan and the payday loan. Depending on how poor your credit rating is and how much money you are applying to borrow, you might also think about a personal loan.
How Much You Might be Able to Borrow
The amount of money you might be able to borrow is going to depend on your credit rating, the amount of income you have coming into the home and how much you pay out each month. The lender will check your income and outgoings so they can determine if they think you can afford the loan or not. However, as a rough guide you might be able to borrow:
- Payday loans generally offer between £100 and £500;
- Short-term loans usually offer between £500 and £1,000;
- A personal loan might offer up to £5,000.
Now let us consider the different types of loans to find which might be more suitable for your circumstances.
A Payday Loan
You might only want to borrow a small sum of money to tide you over until your next payday. Perhaps you have been met with an unexpected bill that needs to be paid immediately and there is not enough money left to pay it. In this case, a payday loan can be applied for even if you have a poor credit rating and if you are approved money could be in the bank within hours.
With the payday loan, you could be entitled to borrow from £100 to £500 and spread the cost of the repayments for up to three paydays or months.
With the short-term loan, you might be eligible to borrow between £500 and £1,000 and spread out the repayments for up to 36 months with our lenders.
This means you can borrow a relatively small amount of cash for any reason and ensure that the monthly loan repayments are affordable. As with any loan the longer, you spread out the repayments the more interest is going to be added on so consider this when considering the term.
Personal Loans without Guarantor UK
A personal loan does not require a guarantor but bear in mind that if you do not have someone to guarantee the loan and your credit rating is extremely poor, obtaining a personal loan may be difficult.
With a personal loan, you could spread the repayments out for up to 36 months. The money can be borrowed to finance anything, as the lender generally does not ask why you want the money.
When considering a personal loan check the APR as this is going to tell you how much interest you have to pay back on the loan. Different lenders might offer different APRs and the lower the APR the less interest you will pay.
Apply for loans without guarantor UK with our help. We can help to match you up with a lender from a wide panel of lenders, all who consider your circumstances now. Lenders will look into your credit file but do care more about your ability to be able to repay the loan. Choose how much you want to borrow and the term you want to repay, it takes just minutes.