Is there such a thing, as very bad credit loans no guarantor no broker? This is a complex question so we are going to break it down into easier to digest chunks to explain the answer.
Therefore, the questions we are aiming to answer are:
- Is there a loan with the name of a very bad credit loan?
- Are there loans that do not need a guarantor?
- Can I get a loan without a broker?
So let us take a look at the first question and answer it.
Is There A Specific Loan Called Very Bad Credit Loan?
There is no specific loan with the name of a very bad credit loan on the market. Nor are there any loans specifically for people with bad credit ratings. However, some loans might be easier to find approval for than others might.
Loans that may be easier to get approval for if you have a bad credit rating include:
- Secured loans.
Are There Loans Without a Guarantor?
The next question we will answer is, are there loans that do not need a guarantor? This is a very simple question to answer as yes you can apply for all of the above loans without the need for a guarantor.
There is a loan aimed at people with poor credit ratings with the name of a guarantor loan and this is the only type of loan that does require you to have a guarantor by your side.
Can I Apply for A Loan Without A Broker?
The answer to this question is you most certainly can apply for loans without a broker’s involvement.
You can make a search online for a loan using a search engine, then go through the results, and click on each of the listings individually to try to find a lender willing to offer you a loan with bad credit. However, this is not as easy as it sounds despite what the search result headlines might suggest.
While it is understandable you might not want to go with a broker as there will be an added fee to pay, a broker can save you a great deal of time and stress that makes the fee worth it.
So, Is There Such a Thing, As Very Bad Credit Loans No Guarantor No Broker?
While there is no specific loan type called a very bad credit loan, yes there are loans more suited to those with bad credit than others might be and which do not need a guarantor or broker.
Now we will look at the types of loans that do not require a guarantor which people with poor credit ratings might be eligible to apply for, with or without the help of a broker. They include:
- Payday loans for small sums paid back quickly;
- Short-term loans for up to 12 months;
- Secured loans
All of the above may be classed as very bad credit loans no guarantor no broker and may be suitable to apply for with a poor credit rating, with the most suitable loan being dependent on the amount you want to borrow and when you want to repay it.
Now let us break down these loans so you have a better understanding of what is offered with each of them so you can determine which might be more suited to your needs.
What Does A Payday Loan Entail?
Payday loans are loans offering sums of money between £100 and £500. Loans of this nature are often called quick loans due to the fact they are quick and easy to apply for and money can be paid into your bank within hours of applying for the loan.
When borrowing with a payday loan you are only asking for a small sum of money and you are agreeing to repay the loan within a period of one to three months. This is assuming that you are paid every month.
If you agree to pay the loan on your next payday, the total sum you borrowed along with any interest incurred up to that point is paid back when you are paid. The lender will take the money from your bank account so you need to ensure there are adequate funds and you are not going to be left without money.
If you spread the repayments over three paydays you will pay an instalment of the loan along with interest incurred up to that point on three paydays. Again, the lender will take the repayment from the bank.
Taking a payday loan over the shortest time possible is the cheapest way of borrowing. However, it is important to make sure that the loan is affordable.
Why Do People Apply for Payday Loans?
One of the most common reasons why people apply for a payday loan is when payday is some time away and an unexpected financial outlay has cropped up. Many people class them as emergency loans when they know the loan can be repaid on their next payday or over three paydays.
An emergency could be to pay off a large final demand bill that was forgotten about or to pay for repairs to a vehicle or large household appliance. Of course, money from the loan can be used to cover just about anything.
Is a Payday Loan an Expensive Way of Borrowing?
Payday loans are usually shown with a huge APR, which is often in the thousands of percent. This is the annual percentage rate, which would be paid on the loan over a year. Of course, with a payday loan, you are not borrowing money over the year. You are only borrowing for one to three months.
Payday loans are not particularly expensive providing you can repay the loan as agreed and you do not roll the loan over.
What Does A Short-term Loan Offer?
A short-term loan may be a suitable option if you need to borrow up to £1,000. Short-term loans are taken over the short term. The short term is dependent on the lender but generally, it is no longer than 12 months.
APR is calculated on the loan, and the amount borrowed along with interest is repaid over the term agreed with the lender.
A short-term loan can be taken out for just about any reason and usually, the lender will not want to know why you need the loan.
What Is A Secured Loan?
A secured loan is a popular type of loan applied for by people with poor credit ratings when they want to borrow a larger sum of money.
With secured loans, it may be possible to borrow thousands of pounds spread out over many years.
There is a downside though and this is that you have to secure something against the loan. Generally, this is a vehicle or property. If you cannot repay the loan the lender can take possession of whatever you secured against the loan.
We Can Help You Find a Loan
We are not lenders ourselves we are a broker. Yes, we know, the title is getting a loan without a guarantor or broker. However, there are benefits to allowing a broker to find you a loan. These include:
- We can search with a large panel of lenders in the UK;
- You only have to make one application;
- You get an instant decision;
- We can match you with lenders who offer some of the most competitive rates;
- We can match you with lenders offering affordable loan solutions;
- The application is fast;
- You don’t have to search yourself, which can take a great deal of time;
- If we match you with a lender, money from the loan could be paid into your account within hours.
To be eligible to apply for a loan in the UK you need to:
- Be over 18;
- Have a regular income;
- A UK bank account in your name;
- Have a debit card attached to the account;
- The bank account accepts direct debits for loan repayment.
Providing you can say to all of the above you can apply for a loan whether you choose to go it alone or choose to allow us to help match you up with a lender from a large panel of UK lenders.
If you only need to borrow a small amount of money to cover an unexpected financial outlay, and you know you can repay it within three months a payday loan might be suitable.
If you require up to £1,000 and can repay the loan within a 12-month period, you might be better applying for a short-term loan. In this case, check the APR as this determines how much interest is added onto the loan. Usually, the lower the APR the less interest accumulates so the less the loan costs in total.
When looking for very bad credit loans no guarantor no broker and you want to borrow thousands of pounds you might have to consider a secured loan. However, before rushing into such a loan ensure you understand what it entails and that you stand to lose whatever you secured against the loan if you cannot repay it.