One type of loan that people with poor credit ratings may find it easier to be approved for is a guarantor loan. However, not everyone wants to bring someone else into his or her financial matters or has someone they trust enough to ask them to stand as a guarantor. So if this applies to you, what are the options for loans for poor credit no guarantor needed?
You will be pleased to hear there are many options for loans that do not need a guarantor.
With a poor credit rating, you may be limited as to how much you can borrow but as a loan broker, we do work alongside a large panel of lenders who will consider verifiable income not just your credit past. This may increase your chances of finding an affordable loan with some of the most affordable rates of interest.
To apply for a loan you need to ensure you:
- Are at least 18;
- Have a regular income;
- Have a UK address;
- Have a bank account and debit card;
- A direct debit can be set up on the bank account.
There Are No Specific Bad Credit Loans
There are no specific loans for bad credit, but some loans may be easier to find approval for if your credit rating is less than perfect. Two types of loans are the:
Both loans do not require you to ask someone to stand as a guarantor when applying and they are not secured loans. This means you do not have to put anything up as security against the money you are borrowing.
Benefits to Payday and Short-term Borrowing
There are many benefits to applying for a payday or short-term loan. These include:
- The loans are quick and easy to apply for online;
- The entire application is undertaken online without the need for paperwork;
- Lenders will offer an instant decision;
- We can search with a large panel of lenders from one loan application;
- Multiple searches are not recorded on your credit file;
- The lenders we work with offer some of the most affordable rates of interest based on your circumstances;
- Lenders take your verifiable income into consideration not just your credit rating;
- Lenders offer numerous loan options;
- If approved money is paid directly into your bank account often within hours.
Specifics of Payday and Short-term Loans for Poor Credit No Guarantor Needed
While the payday and short-term loans both come with the same benefits when applying for your loan with our help, there are differences to the two types of loans and we are going to look at them here.
A payday loan is often the easiest type of loans for poor credit no guarantor required to find approval for, as the sum of money involved is low.
Lenders are more likely to approve loans of small cash sums than they are for thousands of pounds, for people with poor credit ratings.
Loans Offering £100 to £500
Lenders will check your credit score but not look too deeply into it if you are requesting to borrow between £100 and £500.
Affordability and verifiable income are more of a concern to them. Lenders do understand that your bad credit past may be in the past and you may now be in a position to be able to repay a small loan. Therefore they will make a check to find out what you have coming in each month and what you pay out.
Repay Within One To Three Months
Payday loans do offer some flexibility in regards to the repayments. As the name of the loan might suggest payday loans are repaid on your payday. The whole of the loan does not have to be repaid on your next payday.
Lenders will allow you to split the cost of borrowing for up to three paydays or months.
Interest has to be considered here, as with payday loans it is not calculated over the year, APR. The payday loan might be shown with APR, which is often in the many thousands of percent. This can be frightening, but this APR is what you would pay if you paid the loan back over the year and you are not.
Interest on payday loans is calculated on a daily basis. The least amount of time you take to repay the loan, the less interest you will pay and the cheaper borrowing is.
Short-term loans are another type of loan that is generally easier to find approval for even with a poor credit rating.
Borrow As Much As £1,000 Repay Over 12 Months
A short-term loan offers more than what is offered with a payday loan. Lenders may allow you to borrow up to as much as £1,000 and give you up to 12 months to repay your loan.
Again, some thought has to be given to interest, as the longer you take the loan over the more interest is added onto the loan. Try to find the fine line between affordable monthly repayments and keeping the interest down to the minimum.
It can help to sit down and work out your finances before applying for a loan so you know exactly how much you can afford to repay each month and borrow. Lenders will also make an affordability check to ensure the loan is affordable and you have enough left over after paying your monthly outgoings.
If you are looking for loans for poor credit no guarantor needed, a payday or short-term loan might be suitable. We can help to try to match you with a lender from a wide panel of lenders, all offering some of the most affordable rates and numerous loan options. Apply today to get an instant decision; you could get the money paid into your bank on the same day.