If you have a bad credit rating you might be looking for a loan. One type of loan that those with less than perfect credit ratings can apply for is a guarantor loan. However, this type of loan is not suitable for everyone, but you don’t have to worry as there are many choices of loans for bad credit without guarantor.
There is never any guarantee that you will be approved for any type loan whether you have a bad credit rating or a good one. On saying this, there are some types of loans were approval is easier to find than others. Two types of loans that are easier to find approval for with a poor credit rating are:
- A payday loan;
- Short-term loan.
To be eligible to be considered for a loan, you do have to have a regular income and be over the age of 18. Lenders do consider some benefits to be income, so even if you are not in work you may still be eligible for a loan. You also need to have a UK address along with a bank account in the UK and a debit card attached to it.
Payday Loans for Bad Credit without Guarantor
The payday loan is one of the most popular types of loan to apply for with a bad credit rating. This is due to the fact that it allows you to borrow just a small sum of money and the entire loan is repaid back fast. This means the lender is not taking as big a risk as they would be if you were to borrow many thousands of pounds over many years.
With the payday loan you can generally borrow between £100 and £500. This money can be used for anything, but generally people take out payday loans to cover an unexpected outlay until their next payday comes around.
Some of the main reasons people apply for payday loans are to cover:
- Large bills that have been forgotten about that cannot wait until next payday;
- Unexpected repairs to either a vehicle or household appliance;
- Overspending and not having enough money left or going into an unauthorised overdraft.
Payday loans can be paid back in full on your next payday or you can spread out the cost over three paydays. If you can afford to repay it back the next time you are paid, it will complete the loan and the loan will work out cheaper than had you spread it out over three paydays. Bear in mind that interest is going to be added on to the loan on a daily basis so the quicker you can repay it, the less the loan will cost in total.
The Short Term Loan
A short-term loan is another option of loan that is available if you only need to borrow a small sum of money. It is also another loan that comes with a higher approval rate for people with a poor credit rating than secured or personal loans.
With the short-term loan, you might be able to borrow between £500 and £1,000. Lenders will usually allow you to spread the cost of borrowing for up to 1 year with a short-term loan.
When considering short term loans for bad credit without guarantor usually the lower the rate of interest the less the loan is going to cost. This means you have to check the APR of the loan. Along with this, you also have to consider any fees that might be added onto the loan as this is going to boost the total amount repayable.
Secured and Personal Loans
There is also the secured loan and personal loan. However, secured loans do need something secured on the loan, such as your car or home. This means if you default on the loan the thing you put up as security is at risk.
A personal loan is an unsecured loan so doesn’t have that risk, but approval may be more difficult to find than with other loans if your credit rating is poor. If you do get approved for a personal loan you can expect the APR to be higher than what might be offered with a secured loan.
Secured and personal loans may allow you to borrow up to £15,000 and spread the cost of the repayments for up to 36 months.
Apply For a Loan Online
We make finding loans easy compared to searching for one yourself if you have a bad credit rating. Not all lenders are willing to offer credit to people with poor credit ratings so looking for a loan can often be like searching for a needle in a haystack.
Luckily, we work alongside lenders who consider all circumstances. Providing the lenders thinks you have the ability to repay the loan, there is no reason why they would not consider your application. You may have earned a bad credit rating some years ago, but now your circumstances have changed. Lenders that we work with understand this.
To start your application tell us the amount of money you would like to borrow and when you can repay it. We will then search with a panel of lenders to try to match you up. If successful you can go head and check out the details of the loan and if it suits your needs sign up. The money may be paid into your bank account on the same day.
We can help to save you time, as we can search for loans for bad credit without guarantor on your behalf. You get an instant decision and the lenders that we work alongside offer some of the most competitive rates along with numerous loan options. Lenders will consider your credit rating as all UK lenders do; however, they will also consider your current circumstances along with your ability to be able to pay back the loan.