Are you looking for very bad credit loans no guarantor no broker? If you need a loan, but have a bad credit rating and do not want a guarantor loan there are choices of loans out there. So let us consider some of those choices to help you find a suitable loan and talk more about loans in general.
We are going to explain the following throughout this article:
- The downsides and benefits of a broker;
- The types of loans available;
- Credit Checks;
- Loan Eligibility;
- Applying for your loan online
Broker or No Broker?
You might have heard bad things about some of the loan brokers out there and have decided you want to avoid them. We do not wish to persuade you otherwise if that is your choice but there are some advantages to using a broker when looking for a loan.
There are Numerous Advantages to Looking for A Loan with a Broker
With a broker, there is no way of getting around paying fees. However, these fees are there for a reason and there are many reasons why you might want to change your mind and allow a broker to find you a loan. For one, the broker can help you to find a loan a lot easier than if you look on your own.
This is down to the fact that brokers work alongside a panel of lenders. This means they can search on your behalf with that panel of lenders to find a lender willing to offer you a loan with your bad credit rating.
Make One Single Loan Application Search with Many Lenders
This also means you are only making a single loan application to be in a position to gain access to numerous lenders. If you make a search for a loan on your own you may have to apply with numerous lenders before you are approved for a loan, with all the searches going onto your credit file and having a negative impact.
After understanding the above, you might have to realise that brokers can help you in many ways and it can be worthwhile paying a small fee.
Now we will go on to look at the types of very bad credit loans out there.
The Types of Very Bad Credit Loans No Guarantor No Broker
So whether you choose to look for a loan on your own or you have decided that a broker may be able to help you find a loan, here are the main types of loans you might want to consider applying for:
- Short term loans;
- Payday loans;
- Personal loans;
- Secured loans.
There is of course the guarantor loan, but you may be adamant you do not want that type of loan or you do not have someone you can ask. While a guarantor loan can work out in many instances, for those with a bad credit rating, we totally understand if you do not want one. Not to worry there are many other choices available depending on the amount of money you want to borrow and how long you want to spread the loan over?
How Much You Might Borrow With a Short Term Loan
A short term loan is a popular type of loan to apply for if you have a bad credit rating as you are borrowing over the short-term and you are not applying to borrow thousands of pounds.
With the short term loan, you might expect to be able to borrow in the region of £500 and £1,000. You can use this money for anything you want; as generally, the lender does not ask why you need a loan.
The short term loan allows you to spread out the cost of the loan repayments for up to one year if needed, hence the term short term. The longer you spread the term over generally the cheaper the monthly loan repayments. Bear in mind though the longer you take to repay the loan the more interest you will pay on the loan.
How Much You Might Borrow With a Payday Loan
A payday loan is another type of loan that is favoured by people with poor credit ratings, as they are generally easier to find approval for than other types. The reason being is that lenders do not pay a great deal of attention to your credit past as the amount of money you are asking to borrow is only small compared to other types of loans?
With the payday loan, you can expect lenders to offer in the region of £100 to £500. Payday loans are generally applied for if you are met with a sudden financial outlay and you do not have sufficient money in the bank until your next payday, hence the name. The loan provides you with that money and you repay it back the next time you are paid. Many lenders will allow you to spread the loan out for up to three paydays, which make the loan more affordable, but it does cost more to borrow this way. This is due to the fact that interest is added on daily, so the least amount of time you borrow, the less you will pay in total.
Reasons for Applying For a Payday Loan
There are many reasons why you might need to borrow money fast and these include:
- Paying a bill or other financial outlay you had forgotten about;
- Paying for repairs to a vehicle or household appliance;
- Replacing a household appliance you cannot manage without;
- Paying for the cars MOT that you forgot was due;
- Getting out of an unauthorised overdraft after overspending.
How Much You Might Borrow With a Personal Loan
When looking for very bad credit loans no guarantor no broker you might want to borrow more money than what is offered with payday or short term loans. In this case, a personal loan might be better. A personal loan is much more difficult to find approval for than a short term or a payday loan, if you have bad credit, but it is not impossible.
Depending on how bad your credit is, how much you want to borrow and how much you have coming in and going out each month, we might be able to match you with a lender.
Borrow More Money over a Longer Term
With a personal loan, you might be in a position to borrow up to £15,000. Depending on the lender, you might be able to spread the cost of the loan for up to 36 months. Again as with any loan, the longer you take the loan over the more the loan is going to cost you in interest.
When considering a personal loan you should check the APR as this is going to help determine the rate of interest on the loan and ultimately how much interest you pay. Interest rates vary between lenders and your credit rating will determine the rate. With a poor credit rating, you are seen as being a bigger risk to the lender and so the APR will be higher.
If you have an extremely poor credit rating, and you do not want a guarantor loan, the lender might still be willing to offer you a loan but they might offer a secured loan.
With the secured loan, you do have to put something that is of value up against the amount of money you are borrowing. This is usually your vehicle or home, depending on the amount of money you want to borrow.
While this may be a way of getting a loan, you do have to consider that if you cannot repay the loan the lender can take your vehicle or home to sell to pay the loan off.
Do all lenders perform Credit Checks?
All UK lenders will perform credit checks. However, this does not mean to say that they will turn you down solely based on this fact. Lenders we work alongside will put more faith in your ability to repay the loan than what happened in your past.
Providing you have enough disposable income after paying your outgoings, lenders will assume that the loan is affordable to you.
All lenders in the UK set out eligibility criteria for loans. This are some basic criteria that you must meet before you can apply for a loan and it is as follows:
- You have a regular income;
- You are 18 years old at least;
- You have an address in the UK;
- You have a bank account with a debit card.
What Is A Regular Income?
When talking about a regular income most lenders will classify either an income from work or regular benefits as an income. You need to tell them how much income you have per month and what you pay out. What is left is called disposable income and this is what the lender expects you to pay them back from.
You need to give your bank account details so the lender can pay the funds from the loan into your account, and they take the loan repayments back from your debit card.
Applying for a Loan Alone or With Our Help
If you are still adamant that you do not want the help of a broker, you can search for a loan yourself. This is going to take time, as you might find lenders offering you a loan and telling you they guarantee you will be accepted, only for you to find much later that they turn you down.
Searches Get Recorded on Your Credit File
The search is recorded on your credit file and the more applications you make the more it affects your credit rating negatively. It could take some time to locate a lender willing to offer you a loan and this may be time you do not have to waste if you need money fast.
A Single Application to Search with Multiple Lenders
On the other hand, you could make a single application with us and we can help to match you with a lender from a panel of lenders. If one lender turns you down, we move onto the next. The lenders we work with are all based in the UK; they offer affordable loans with some of the best rates of interest, even to people with poor credit ratings.
Money May be In Your Account the Same Day
If we match you with a lender, you can check the details of the loan to ensure it is exactly what you are looking for and then go-ahead and sign up for the loan. You might even be able to get money transferred to your bank account on the same day. If you need to get hold of a sum of money fast to meet a financial outlay this can be a lifeline.
Brokers do come with an additional fee but that fee might be well worth it when you consider what you get for that fee. You get a fast loan application with an instant decision along with access to a wide range of lenders, all who offer some of the most competitive rates on the market. We work with lenders who consider all circumstances and who base their decisions not just on your past credit history but also the loan affordability.
You can look for very bad credit loans no guarantor no broker on your own, but this takes time and this might be a luxury you do not have. Looking for a loan is less time consuming if you permit us to help match you up with a lender from a panel of UK lenders who offer loans to people regardless of their credit rating.