Guarantor loans have their place on the loan market, as they can be the ideal loan in certain circumstances, for certain people. However, not everyone has someone they feel they can share their financial situation with or wants to. In this case, you will be looking for a loan that does not require a guarantor. So what are the alternatives to non guarantor loans?
We will look at:
- The different types of loans available without guarantor;
- Which loan might be most suitable for you;
- The amount offered by the loans;
- Which loans are better for people with bad credit?
Three Popular Choices of Loans That Do Not Need a Guarantor
There are three popular types of loans that do not require you to ask someone to be your guarantor. There is no one loan suits all as the most suitable is going to be dependent on the sum of money you wish to borrow, the term you want to take the loan over and your credit score. Even if you have a poor credit score, you might be able to find a lender who will approve a loan.
The most popular choices for loans that do not need a guarantor are the personal loan, short term loan and a payday loan. Each of the loans offered has a limit to the amount of money you might be able to borrow, and how long you can spread the repayments over.
Loans for People with Bad Credit
If your credit rating is poor, and you have found it difficult in the past to obtain approval for a loan in the past, you might want to consider a payday or short term loan. These loans allow you to borrow over the short-term and only offer small sums of money. There is a difference between the payday loan and short term loan so you do have to consider this when submitting an application.
£100 to £500 Payday Loans
A payday loan offers a small sum of money, usually between £100 and £500. This loan is popular with people who have poor credit ratings and who need just a small loan that they can repay back fast. It is also popular to prove to the lender that you can repay on time and this helps to rebuild your credit rating.
Payday loans are usually taken out if you have come across a financial outlay and need to get hold of a small sum of money before payday. A loan can be applied for in minutes and if successful money may be paid into your bank account within a few hours.
You can apply for a payday loan for any reason but you have to ensure that either you can repay the loan on time in full on the specified date or on the dates you agreed with the lender, usually up to three months.
Short-term Non Guarantor Loans Up To One Year
A short term loan is a loan that is usually taken out for no longer than one year. The amount you can borrow is dependent upon the lender; however, this is usually between £500 and £1,000.
Short-term loans give the borrower a little more freedom in the amount borrowed and the repayment schedule. This ensures that the loan is affordable. One thing to consider when choosing how long you want to repay the loan is the longer you take it over the more interest will accumulate on the loan but the less the monthly repayments will be. Therefore, you are going to have to compromise between affordable monthly repayments and paying less interest and more in total.
Personal Loan for People with Good Credit
If you have a good credit rating and you need to borrow more than what is offered for a short-term loan or a payday loan you could consider a personal loan. Even if your credit rating is not perfect, you might find a lender willing to give you a personal unsecured or secured loan.
The APR on personal loans will differ based on your actual credit rating. The better your credit rating the lower the APR and the less interest will be added onto the loan. If you have a poor credit rating but the lender decides to take a risk on you, you can expect a higher rate of interest. On saying this, we work alongside a panel of lenders to match you with a lender willing to offer you a loan with competitive rates and affordable loan options.
You can apply for non guarantor loans in just a few minutes by providing us with your personal details. In minutes, you get a decision and money could be paid into the bank account you gave us when applying within hours.