Is it possible to get loans without guarantor if your credit rating is less than perfect? The answer is yes it is. While there is never any guarantee that you will be accepted for a loan, there are lenders who take your current situation and ability to repay the loan into account more than your credit rating.
There is a range of no guarantor loans you might want to consider. The most suitable type of loan will depend on several factors. Let’s look at the different types of loans and the circumstances you might want to consider them. They include:
- A personal loan often called an unsecured loan – suitable if you want to borrow up to £5,000 and spread the cost of repayments over up to 36 months;
- The short term loan – suitable for those who want to borrow and repay over a year or so;
- The payday loan – suitable if you want to borrow as little as £100 or up to around £1,000 and repay within two or three months, on the dates you are paid.
As you can see from the above, there are numerous options of loans to consider if you do not want to have to ask a guarantor. Your credit rating may also affect how much you can borrow but we work with lenders who take into account your ability to be able to pay off the loan more than your credit past.
Whenever applying for loan always make sure you understand exactly how much the loan is going to cost you. Financial terms can be difficult to understand and it is essential you understand the terms of the loan. We do our best to be transparent,
What Do I Need To Be Able To Apply For Loans without guarantor?
To be able to apply for a personal loan, payday loan or short term loan you will have to be eligible.
To apply with our lenders you have to be a resident of the United Kingdom and be over the age of 18. You also need to have a bank account within the UK and have a debit card attached to the bank account. If you are approved for the loan, the money will be deposited into your nominated bank account. You will be expected to have an account where a direct debit can be taken each month to repay the loan.
You will have to provide evidence that you have a regular income coming in. This can be money coming in from a job or benefits. Our lenders will also have to make sure you can repay the loan so they will need to know what your outgoings are. Your outgoings are the amount of money you pay out each month on things like bills, mortgage or rent, and any other outgoings.
How to Apply For No Guarantor Loans
Applying for no guarantor loans with us could not be simpler. We are not lenders. Instead, we work with a wide range of lenders to match borrowers up to them. This works in your favour as you only have to make a single application on our website and we will search our lenders to find you a match.
As we work with numerous lenders, there is a better chance of finding one that will provide you with the loan you need. All our lenders offer highly competitive rates taking into account your credit rating and personal loans that are affordable. Lenders will check to make sure you can afford the repayments on the loan based on what you have coming in each month and what you are paying out. This takes precedence over your past credit history.
The online application takes just minutes and you can get an instant answer. If you are approved for a loan, the money could be paid into your bank within a day or two.
Loans That Might Be Available To You
Now let’s take a deeper look at the types of loans that may be offered to you depending on your credit rating.
Personal or Unsecured Loans
If your credit rating is fair, you might be in a position to apply for a personal loan. This type of loan is also called an unsecured loan. Unsecured means that you do not have to secure anything against the amount you are borrowing, such as your home. It also means you do not need to ask someone to stand beside you as a guarantor.
A personal loan may allow you to borrow up to £5,000 and spread the cost of the repayments up to 36 months. The amount you may be able to borrow is going to be dependent on your credit score, among other things.
Short Term Loans
If your credit rating is decent to poor, you might be considered for a short term loan. The short term loan allows people to borrow over a short period of time, hence the term short term loan. You may be able to borrow up to £1,000 with this type of loan, but this amount will vary depending on the lender and your circumstances.
Short term loans and payday loans may help you to rebuild your credit rating providing you are not late with repayments and pay the loan off as scheduled.
The final type of loan you might want to consider is the payday loan. This is a loan designed to be taken out for just two or three months. With the payday loan, the amount is usually small, from £100. It is called a payday loan as usually the loan is repaid on your next payday. However, lenders are prepared to allow you to spread the cost of the loan over two or three paydays, so essentially you have three months to repay the loan.
The payday loan is one of the easiest loans to be approved for if you have a very poor to bad credit rating and only need to borrow a small sum of money. Owing to this, the APR is generally higher than on any other type of loan. The interest rate is usually calculated on the basis of the number of days the loan is taken over. With this in mind the least amount of time you are repaying the loan, the lower the amount of interest you will pay. It may be possible for you to repay the loan earlier than anticipated, taking this into account make sure that there is no early repayment fee attached to the loan.
If applying for a payday loan always make sure that the repayments are going to be affordable. Remember if you spread the cost of the payday loan over three months you are going to be left short of money for the next three paydays.
As the interest rate is usually higher on payday loans this type of loan should only be considered when you need to get your hands on a small sum of money fast. People apply for these types of loans for:
- Paying a utility bill that has been forgotten and the final bill arrived;
- Paying out for any emergency repairs to appliances you cannot manage without such as the freezer or fridge;
- Your car breaks down and it needs repairing;
- Your freezer broke and your food spoiled and you need to replace it;
- Your child tells you they have to take a deposit to school for that trip they have been talking about for a long time;
- Any other emergency where you need money fast.
If you have a less than perfect credit rating finding a loan and being approved can be a nightmare if you don’t want to ask a guarantor to stand in for you. Even making applications for credit can have a negative impact on your credit if you are turned down. The amount of times you apply for credit is recorded on your credit file if lenders make a hard check on your credit file. Being turned down and re-applying leads to a vicious circle as you cannot get credit without trying. Bonsai Finance helps to bridge the gap between the borrower and multiple lenders with one single application.
Make one application with us for loans without guarantor and we will match you from our panel of lenders, all of whom offer affordable loans, and who provide numerous loan options. If one lender turns you down, we move on to the next and so on. The lenders we work with focus more on your ability to repay the loan than credit ratings, though they do check your credit score as they have to by law. Apply for your loan today with us; it is quick with an instant decision.