Anyone with a poor credit rating may think it is hopeless to be approved for a loan unless they can find no credit check loans no guarantors. While a guarantor loan might be easier to find approval for many people do not feel comfortable asking a close friend or relative to step in and guarantee them a loan.
Credit Checks and Loan Applications
But is it possible to get a loan without having a credit check? Sadly not, at least not in the UK anyway. All ethical lenders in the UK will make a check of your credit file but some will not make a thorough check, just a soft check.
This means they do not go into your credit file too deeply. What is great news is that some lenders, including the ones that we work with, will consider your circumstances at the moment. If you have a regular income coming in and not too much by way of outgoings, they may be able to provide you with a loan even with a bad credit rating.
Alternatives to No Credit Check Loans No Guarantors
Some loans may be easier to get approval for than others are. The guarantor loan being one type. However, if you do want to ask someone to stand as guarantor or you do not have anyone to ask, there are other types of loans to consider, depending on how much you want to borrow.
If you only want a small sum of cash and you want to get hold of money fast, the payday loan might be the most suitable type of loan.
If you need a little more money and want to spread the repayments for up to 1 year, you might want to give some thought to applying for a short-term loan.
If you need to get hold of a few thousand pounds and spread the cost of repayments over 36 months a personal loan may be more up your street.
If You Need To Borrow Between £100 and £500
If you want to borrow a sum of money between £100 and £500 and have the ability to be able to pay back the loan within one to three months, you might want to consider applying for a payday loan.
The payday loan does not need a guarantor but the lender will make a credit check as they have to by law. The amount of interest paid on the payday loan is calculated on a daily basis. It can be shocking to see the interest rate displayed for payday loans as it is generally in the 1,000% mark. However, this is the rate if you were paying it over the year, but you are not. You are repaying within one month to three months. Payday loans are usually a more expensive way of borrowing, but they can work as they are intended to work if you ensure you can repay the loan as agreed on.
When taking out the payday loan you choose to either repay the whole loan on your next payday, including the interest that the loan has accumulated. Alternatively, you might spread the repayments over three months, depending on the sum of money borrowed.
If You Need To Borrow Between £500 and £1,000
If you need to borrow between £500 and £1,000, you might consider a small term loan. The small term loan is repaid within months, generally up to one year. Spreading the cost of the loan out over a longer period means you keep the monthly repayments down, however, it does mean that in the end, you do pay more out in interest.
When considering a short-term loan there is the APR to take into account and you can usually find this set out in the pre-contract information of the loan agreement. The annual percentage rate is the amount of interest that will accumulate on the loan over the period you take it over. The lower the APR the less interest you will pay.
If You Need To Borrow Between £1,000 and £5,000
If you need to borrow between £1,000 and £5,000, you should consider applying for a personal loan. This type of loan is difficult to be approved for if you do have a poor credit rating and do not want a guarantor, but it is not impossible. Again, you cannot get around the fact that you will have to undergo a credit check but the lenders we work with do also consider your current circumstances.
The APR on a personal loan will vary between lenders so if we match you up with more than one lender who is willing to offer you a loan, check the APR as usually the lower it is the less you pay in interest over the term of the loan.
One thing to look for in the terms of the loan is any added fees. These might include an early repayment fee. The early repayment fee would come into force in the event that you wanted to pay back the loan earlier than you thought.
An example of this would be if you took a loan out over 36 months but could pay it off in 30 months. In this case, you would save a small amount by not having to pay interest for 6 months. However, if there was an early repayment fee this might do away with any savings you might make by paying the loan off early.
We can help you apply for a loan even if your credit rating is less than perfect. We work with a panel of lenders who offer loans to people with poor credit ratings based on their current circumstances.
All lenders we work with will offer affordable loans with competitive rates, based on your personal circumstances. The online process is fast and easy and with only a single application, we can try to match you up with a lender from a panel. This means you do not have to worry about having several searches show up on your credit rating and gives you more chance of obtaining no credit check loans no guarantors.