When you find yourself in need of extra funds, what solution should you consider? It doesn’t matter why you need the cash, it could be an extension on your home, a new car or even funding that dream trip abroad you always promised yourself. Whatever you want the money for there are a few ways to go about it, you could try an overdraft, payments on a credit card or usually the cheapest option, long term loans no guarantor needed. But what exactly are these types of loans?
Understanding Long Term Loans No Guarantor Required
Long term is a bit of an open-ended expression as it can mean anything greater than a year and range up to longer than 20 years. However, when you are considering taking out one of these, you need to be happy with the length of time that your particular loan will run for. The interest rates and terms will all be variable depending on this length, so in order to find the perfect loan for you, you will need to take this into account.
Sometimes, particularly if you don’t have a good credit rating, a lender will want you to take out a loan with a guarantor. These are usually family members or friends that can promise to guarantee that the loan will be paid back in full, and if they have a better credit score than you it might reduce the interest rate and improve the terms of your loan. However, we understand that this is not a possibility in many cases, which is why we here at Bonsai Finance have connections with lenders that will be perfectly happy to supply long term loans no guarantor needed.
Should I Look for a Long Term Loan No Guarantor Needed?
If you are looking for any type of loan, you need to make sure you know how much you need to borrow, how much you can afford each month for the repayments and make sure you check the terms of any potential loans. The longer you take to pay back a loan will increase the amount of interest you pay, however, it will reduce the monthly installments, so take this into consideration when you are calculating how much to apply for. Having said that, borrowing for a longer term can make more financial sense than a short term loan with high interest because you will have a steady repayment schedule and can manage your money more easily.
How Much to Apply For
When considering a loan like this, you need to take into consideration the amount you are borrowing. Weirdly, because of different thresholds for interest rates it can sometimes be less expensive to borrow more money than you planned. If a lender were to offer two different interest rates for borrowing a lump sum, an interesting situation can arise if you wanted to borrow an amount close to the threshold where the rates change. For example, if loans for less than £2000 had a rate of 6% but loans above that amount had an interest rate of 4% for the same repayment period, you could find that a loan of £1950 ends up costing you more than rounding it up to £2000. In every case, make sure you work out how much exactly you will be paying back, as there might be a way to reduce it somehow.
Long term loans no guarantor are an excellent way to make sure you have the funds ready for a large purchase or sudden, unexpected expense as long as you make sure you can pay back the installments when they are due. Bonsai Finance can help you in that you will be given the choice from only appropriate loans that you will be able to afford from our many trusted connections in the financial industry. If you fill in our simple application form, we can select exactly those lenders that can supply the perfect loans to suit your requirements at reasonable rates.
What Are the Eligibility Requirements for Long Term Loans No Guarantor?
In order to be able to apply for any loan there are certain criteria that you do have to meet to make an application. If you make an application but do not meet this criteria there is no way you will be offered the loan.
The basic criterion is:
- Being over 18;
- Living in the United Kingdom;
- You have a regular income that is paid into a bank account;
- You have a debit card attached to the bank account.
You have to be at least 18 years of age to apply for a loan and borrow in the United Kingdom by law. Under the age of 18, you are classed as being a young adult and lenders cannot offer you long term loans no guarantor, or any other loan for that matter.
You must have an address in the United Kingdom. It does not mean you have to be born in the UK, just that you are now living in the UK and have an address you live at in the UK that the lender can verify on your credit report.
All lenders will check to make sure that a loan is affordable. To do so they will take into account the money you have coming in and going out each month. Your outgoings include money paid for rent, electricity, water, gas, council tax, monthly food bill and anything else you pay out. Your income should be paid on a regular basis into your bank account and the lender may want proof of this income. The income does not specifically have to be from work. You can apply for a loan if you are on certain types of benefits.
The lender will need your bank account number and debit card number. They will also want to know whether a direct debit can be set up on the bank account. The lender uses this information to take back the loan repayments over the term you agreed.
Can I Get A Long Term Loan With A Poor Credit Rating?
Long-term loans are the most difficult type of loans to find approval for if your credit rating is not perfect. On saying this, we do work with lenders who do consider all circumstances, even people with a poor credit history. The lenders we work with care more about the affordability of the loan than what happened in the past, but they will make a check of your credit file.
No UK lender is going to offer a loan of thousands of pounds without giving some thought to your credit history. With long-term loans over many years lenders will want to know more about:
- Whether you have any CCJs;
- Made late payments;
- Missed any payments;
- You are on the electoral role;
- How much credit you have outstanding;
- How many different credit accounts you have.
Whether or not you will be approved for a long term loan is going to depend on your credit score, your current circumstances and your ability to repay.
Applying For Long Term Loans No Guarantor
The personal loan is considered one of the long-term loans no guarantor required. The lenders we work with offer some of the most competitive rates along with numerous loan choices and affordable loans. Loans of this nature are offered up to £5,000 and the repayments can be spread out for up to 36 months if required.
We make applying for long term loans no guarantor needed extremely easy. All you need to do is tell us how much you want to borrow and how long you want to spread the loan over. We will attempt to match you with a lender willing to offer you the loan you need. You can then take some time to look over the details of the loan and ensure it is affordable and meets your needs. If it is, you can go ahead and sign up with the lender and they will pay the funds into your bank account.