If you are wondering about your choices for loans for bad credit no guarantor needed we can tell you there are many. There are options for borrowing for all people, regardless of their credit history and the amount they want to borrow. So let us check out those options.
We are going to talk about the following aspects of loans:
- Whether your credit rating affects your loan application;
- The different options for borrowing with poor credit;
- The types of loans most suitable for applying for if you have bad credit;
- The benefits to applying for a loan online;
- How to apply for your loan.
Will My Credit Rating Affect My Loan Application
Your credit rating is going to have some effect on whether you can get a loan, as all UK lenders have to take a look at your credit file. If you are only applying to borrow a small sum of money, the lender may only make a soft credit check. This means they will not look too deep into your file. Just because you have a bad credit rating, it does not mean you will be turned down for a loan and some types of loans are easier to find approval for than others are.
What Are the Different Options for borrowing?
There are various types of loans. You may have already decided you do not want to apply for a guarantor loan, which is one of the types suitable for people with very bad credit.
One of the biggest downsides of guarantor loans is that you cannot apply for the loan alone. You are required to ask someone to be a guarantor and this is not something that everyone likes to do. No need to worry as there are other types of loan to consider.
If you have very poor credit, you stand a much better chance of being approved for a small loan paid back quickly. There are two choices here, the payday loan and the short-term loan. Lenders are more lenient in regards to checking your credit rating if borrowing just a small sum and paying it back fast, than they are a larger sum spread out over many years.
If you do need a larger sum of money but don’t want a guarantor loan you might consider a personal loan or secured loan.
So let us take a look at the options in more detail.
Payday Loans Are Quick to Apply For and Pay Out
Payday loans are one of the most popular and suitable types of loans for people with poor credit ratings as the sum of money borrowed is usually between £100 and £500.
Many people apply for payday loans if they find themselves up against a financial outlay that was not expected. This might be for a final demand bill that had been put to one side and forgotten about. It could be to have your car repaired after it breaks down or to put it through its service and you forgot to budget for it.
With a payday loan, you would choose the amount you want to borrow and tell the lender how many paydays you want to spread the repayments over. Payday loans used to be repaid in one lump sum, including interest, on your next payday. These days it is not uncommon for lenders to allow you to spread the cost for up to three paydays.
While this makes the loan more affordable because you are not repaying it in one lump sum out of your next payday, you will pay more in the end if you spread it out. This is because the loan has interest added daily.
A payday loan is fast and easy to apply for with a good approval rate for people with poor credit ratings.
However, you do have to make sure that the loan is not going to leave you broke on your next payday. The lenders we work with will also consider this, based on what you have coming in and going out each month.
Short Term Loans For Up to 12-Months
Another popular type of loans for bad credit no guarantor is short-term loans. Loans can usually be applied for between £500 and £1,000. This type of loan is more affordable as the monthly repayments can be spread for up to 12-months. The longer you take the loan over, the more interest is going to accumulate on the loan so do bear this in mind.
The APR is going to determine how much you will pay in interest. Generally, the lower the APR the less interest is added on. When working out the cost of the loan you should also take into account any fees that might be added, this might include such as an early repayment fee if you find yourself able to repay the loan before the term. Paying off the loan early can save you money in interest, but only if there is no fee to pay to do so, as this might outweigh any savings.
Borrowing Larger Sums With Loans for Bad Credit No Guarantor
You may be able to borrow larger sums of money without needing a guarantor, but this is going to depend on just how bad your credit rating is and your ability to repay the loan.
The lenders we work with offer personal loans of up to £15,000. Loans of this amount can usually be spread out over a longer term, generally for up to 36 months with the lenders we work with.
When asking to borrow larger sums of money, lenders will check your credit rating more thoroughly than if you were only borrowing a small sum. The lender will also check your current circumstances to find out if they think you can afford the loan.
There is no guarantee that you will be offered a personal loan without a guarantor, but the lenders we work alongside will consider your current circumstances along with your credit file.
Benefits to Applying With Our Help
There are many benefits to applying for a loan with our help. We cannot guarantee that you will get a loan, but we can guarantee that lenders will consider your circumstances.
One of the main benefits to applying for a loan with our help instead of searching yourself for a loan is that we work with a wide panel of UK lenders. We work with lenders who offer numerous options for loans and who offer some of the most competitive rates.
This means that you only need to apply once to be able to search with various lenders and not have separate searches noted on your credit file.
Applying with us is quick and easy and you get an instant decision within minutes.
Making your Loan Application
Making your loan application is extremely easy, as we only need a few details. First, we need to know that you are over the age of 18 and you have a regular monthly income. We also want to know that you live in the UK and have a bank account with a debit card. Providing you meet this criterion, you can go ahead and apply for your loan.
Simply tell us the sum of money you want to borrow and the length you want to take the loan over. This tells us whether a payday loan, short-term loan or a personal loan is more suitable.
We can then search with the panel of lenders we work with to try to match you with a lender willing to offer you a loan based on the terms you want, and the amount you want to borrow.
If one lender turns down your application, we are in a position to simply move on to the next lender. If we match you with a lender, you can then go to the homepage of that lender and check the details of the loan.
If all is well, all that is left for you to do is sign up online for the loan, with no paperwork needed. Essentially this means that within a few minutes of you applying for your loan you could have signed up for it. Depending on the amount of money, you wanted to borrow the money could be paid directly into your bank account on the same day.
There are a lot of choices on the market for people looking for loans for bad credit no guarantor needed. We can act as a bridge between you and the lender. This means you save time and energy searching for a loan yourself and your credit rating is not adversely affected by numerous searches. We work with lenders offering affordable loan choices, competitive rates and who consider all circumstances.