No Credit Check Loans No Guarantors
What are no credit check loans no guarantors? In essence, it means loans that can be applied for, and approved, without a credit check by the lender, and you do not need a guarantor to stand by your side. In reality, it would be impossible to get such a loan as all lenders in the UK check your credit history before offering loans. However, different loans have different levels of checks, which is good news for you.
If all lenders check your credit rating, you might be wondering how you are going to get a loan if your credit rating is poor. All hope is not lost even when lenders check your credit file as there are lenders willing to consider your circumstances along with your credit file and we work alongside such lenders. There are also soft and hard credit checks made. With soft credit checks, lenders do not look deeply into your credit past. The payday loan is one such loan where lenders are not over concerned about the state of your credit file.
Benefits to Applying for a Loan with Our Help
We mentioned one of the benefits above. Lenders that we work with will consider your circumstances along with your credit file. So what other benefits are there to applying for a loan with our help when you have poor credit?
- We are to the bridge to a panel of lenders in the UK;
- Make one application for a loan to search with the panel of lenders;
- Application is fast as it is all undertaken online;
- You get an instant decision;
- The lenders we work with offer some of the most competitive rates;
- Lenders offer numerous loan options including short-term loans, payday loans and personal loans;
- Lenders check to ensure that the loan is affordable;
- If approved money could be paid into the bank the same day.
Why Lenders Check Your Credit File
You might be wondering why lenders do check your credit history in the first place. Your credit file keeps all the information about you regarding previous loans or credit you have taken out.
This includes such as the total amount of credit you owe, the lenders you owe money to, whether you have been late with repayments, missed any repayments or have CCJs against you. This tells them if you are risk.
There are different levels of credit checks. If you only ask to borrow a small amount of money and say that you can repay it within 30 days the lender is not going to look too deep into your past credit history. On the other hand, if you apply for a loan of up to £15,000 and want to spread out the repayments for up to 36 months, the lender will want to make a full credit check.
It Is possible to get A loan without a Guarantor!
Guarantor loans are a popular choice among borrowers with a bad credit rating as it does allow them to borrow a larger sum of money. The downside is that someone has to sign up with them for the loan to say they will take over the repayments if the borrower cannot make them.
You may not have someone close enough to you that you can ask to do this or you might not feel like talking about your financial issues. You might even not want to risk ruining your relationship with that person if it makes them feel awkward. Whatever the reason for you not wanting a guarantor loan does not really matter, as there are alternatives loans that don’t require you find a guarantor.
What Options Are There For No Credit Check Loans no Guarantors?
There are several options open to you if you have a poor credit rating and you don’t want a guarantor loan but there is no getting away from having a credit check.
Depending on the sum of money you need to borrow, and how long you need to take the loan would depend on which loan might be more suitable for your circumstances.
Bear in mind that with all loans you do need to meet the criteria set out below:
- You have to be at least 18 years of age;
- Have a regular income (salary or benefits);
- Live in the United Kingdom;
- Have a UK bank account;
- Own a debit card attached to that bank account;
- Agree to have a direct debit set up on your bank account for repayments.
The different types of loans that do not require you to ask someone to stand as your guarantor include:
Pros and Cons of the Secured Loan
The secured loan is a viable option for a loan if you have a bad credit rating due to the fact that it is easier to find approval for as you are putting something of value up against the loan. Lenders might ask that you put your car up as collateral or your home.
The plus side of the secured loan is that even with a bad credit rating the loan is generally easy to be approved for. You might be able to borrow up to £15,000 and spread the repayments over 36 months, even if your credit rating is poor. The downside is that if you cannot continue meeting the loan repayments the lender could take you to court to claim your vehicle or property so they can sell it to repay your debt.
Pros and Cons of the Personal Loan
A personal loan might permit you to borrow up to £15,000 and spread the repayments for up to 36 months.
The plus side is that you do not have to put anything up against the loan as collateral so your car or home is not at risk. The downside is that the personal loan can be more difficult to find approval for if you have a very bad credit rating.
The APR would determine how much the total loan costs you. Usually you would go for a loan with the lowest APR, as this would incur the least amount of interest. The downside is that if you are approved for a personal loan with a poor credit rating, you are not going to be given the lowest APR on the market. The plus side is that if you allow us to search with the lenders we work with for a loan, they will offer some of the most competitive rates based on your circumstances.
When considering taking out a personal loan check to find out if the lender applies an early repayment fee. You could save money if you find you can repay the loan earlier. However, if there are fees to pay this might not be the case.
Pros and Cons of the Short Term Loan
Short term loans are generally taken out for no longer than 12 months but some lenders might offer longer loans. When considering no credit check loans no guarantors this is among the popular types.
Usually lenders will offer between £500 and £1,000 with a short term loan but again the exact amount would depend on the lender and your circumstances. Affordability is a big thing with our lenders, as they will want to verify that you can afford the loan repayments and rightly so.
One of the pros of the short term loan is that you can borrow and spread out the cost for up to 12-months and not have the loan hanging over your head for years. Another pro is that a short term loan offering a smaller sum of money is easier to find approval for that a personal loan. The only real downside to the short term loan is that the longer you take the loan over the more interest you will pay and the APR is generally higher than that of a personal loan.
Pros and Cons of the Payday Loan
Payday loans used to be thought of in a bad light as it was said that they were a very expensive way of borrowing. They took on a bad name due to unscrupulous lenders on the high street charging huge sums of money and fees. Thankfully, times have changed and the FCA now regulates loans of this nature.
One of the biggest downsides to the payday loan is that when compared to a personal loan it is considered an expensive way of borrowing. This is usually because people compare the APR on personal loans and that of payday loans.
Don’t Compare the APR of Personal Loans to That of Payday Loans
With personal loans, it may be around 34% while with a payday loan it might be in the region of 2000%. What is important to remember is that APR is the annual percentage rate. This applies if you are paying the loan over the year. In fact, with a payday loan you are repaying it back within one to three months. This means you are not paying anywhere close to the 2000% you would be if taking the loan out for the year.
Having said this there are many good points to this type of loans. For instance:
- Payday loans are generally easy to find approval for even if your credit rating is very poor;
- You can apply for a payday loan within minutes;
- Funds from a payday loan can be paid into your account within hours;
- You are not committing to a loan over many years;
- You can choose to repay the loan in full with interest on your next payday or spread it over three paydays;
- By repaying a small payday loan, you can prove you are a responsible borrower, which may help to improve your credit rating.
Payday Loans Usually Have a Higher Rate of Approval for Bad Credit
With payday loans, you can usually borrow a sum of money in the region of £100 to £500. There are instances where you may be faced with a sudden outlay and find that payday is some time away. This is where payday loans come into their own. As the amount you are borrowing is classed as being low by lenders, they are not taking the same risk as if you had asked to borrow thousands of pounds. This means approval is high and pay-outs are generally quick, even for people with a poor credit rating.
This is precisely what you need if you have a poor credit rating and need to get hold of money fast.
Payday loans are an effective way of getting your hands on some much need money if you find yourself short for whatever reason and your next payday is some time away. The loan can work as it is designed to work providing you know you can, and do, repay it as agreed when taking it out.
No credit check loans no guarantors are impossible to find as all UK lenders have to check your credit file before offering you a loan or they would not be ethical lenders. However, even if you have a bad credit rating we may be able to match you up with a lender willing to offer you a loan. The lenders we work with offer affordable loans thanks to some of the most competitive rates available for people with poor credit ratings. Lenders also offer numerous loan options, which mean the chances of us being in a position to match you with a lender are improved.