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Types of Loans for Bad Credit without Guarantor
19 Jun 2019

Two Popular Types of Loans for Bad Credit without Guarantor

While there are many types of loans out there on the market, there are two very popular types that people with bad credit find it easier to be approved than others. Therefore, if you are looking for loans for bad credit without guarantor you might want to continue reading to find out more.

Why Are Lenders Strict?

Lenders are strict when it comes to whom they lend money to, as they have to know whether that person is a risk in regards to repaying the money.

They are not going to offer thousands of pounds to someone without first looking at their past credit history and credit rating. They will also think twice about lending large sums of money to anyone who earned a bad credit rating through missing repayments, being continually late with payments or who failed to pay a loan in its entirety.

The only way of knowing information such as this is to check the credit rating of the borrower and look into their credit file.

While lenders will look into your credit history this is not to say that you cannot get a loan without a guarantor if you have poor credit history. Although borrowing a huge sum of money and spreading it out over many years may be more difficult to do.

However, there are two types of loans often easier to find approval for a poor credit rating. Both of the loans offer relatively small sums of money and are paid back quickly. These are the payday and short-term loans.

Short-term Loans for Bad Credit without Guarantor

Like short-term loans, along with payday loans, offer only smaller sums of money the lender is not too worried about your credit past, although they will still check into your background.

The lenders that we work with will also consider your ability to repay the loan and your current circumstances. They will take a look at how much you have coming in and going out to determine if they think you can afford the loan.

The benefits of both loans include:

  • You are not committed to a long term loan such as a personal loan;
  • The loans are fast and easy to apply for online;
  • The entire loan is undertaken online without any paperwork;
  • You get a decision within minutes;
  • Payout is fast, often on the same day and many times within hours.

Borrow between £100 and £500 with Payday Loans

Lenders typically allow you to borrow between £100 and £500 but this would depend on the lender with some perhaps offering less and some slightly more. Acceptance would depend on affordability, but generally, this is one of the easiest types of loans for bad credit without guarantor to find approval for with a bad credit rating.

You can apply for a payday loan for just about any reason, and the loans are popular with people who have come across an unexpected financial outlay and their payday is still a long way off. Most common reasons for taking out a loan of this nature include:

  • An unexpected large bill;
  • An unexpected outlay such as car repairs or household appliance;
  • Getting out of an unauthorized overdraft;
  • Overspending and needing money to tide you over.

The payday loan is typically repaid in full with any interest it has gained on your next payday, usually one month. However, it can be split up and paid over three paydays.

The downside to this is that the loan is going to cost you more the longer you take it out as interest is added daily.

Borrow between £500 and £1,000 with a short term Loan

If you need to borrow more than what is offered with a payday loan, or you want to be able to spread out the loan over a longer period you might consider a short-term loan.

The short-term loan might offer between £500 and £1,000, again this is going to depend on the lender and your circumstances. Most short-term loans can be spread out for up to one year. This usually keeps the monthly repayments down to an affordable level but you do not have to commit to a lengthy loan over several years. You can generally apply for this type of loan for any reason.

Apply for Your Loan Online in Minutes

We have made the online loan application as easy and as quick as possible. There is no paperwork to undertake with payday and short-term loans so money is often paid into the bank within hours.

To apply for a loan with our help you do need to be over 18, live in the UK, and have a regular income, a bank account in the UK and a debit card attached to it.

To apply for your loan today follow the steps below.

  1. Tell us how much you want to borrow;
  2. Let us know how long you want to take to repay the loan;
  3. Provide us with a few details;
  4. We can then search with a large panel of lenders on your behalf and you get an instant decision;
  5. If we match you with a lender you can check the APR and the rest of the loan details and if happy go ahead and sign up with the lender;
  6. The lender pays the money into your bank account;
  7. You repay the loan as agreed with the lender.

In Conclusion

We can help to find you a loan by matching you with a lender from our large panel of lenders. Lenders offer affordable loan options along with some of the best interest rates available.

From just a single application, we provide access to a range of UK lenders who consider all circumstances and you know within minutes if your loan application has been successful.

Find out how much you might be able to borrow today with payday or short-term loans for bad credit without guarantor, you could have funds paid into your bank within a few hours.