Anyone looking for a loan with a bad credit rating is going to be concerned about whether the lender will make a credit check and turn down his or her application. While a popular choice of loan for people with poor credit ratings is a guarantor loan, this type of loan is not suitable for everyone. With this in mind, you might be asking where can I find no credit check loans no guarantors. Is there such a loan out there?
Many people are put off from taking out guarantor loans, as they don’t want to have a third party involved. Another reason is not everyone has someone they trust enough to ask. You don’t have to worry because there are alternative choices.
Let’s Clear Up a Couple of Points
Let us start by saying that there are plenty of loans out there that do not need a guarantor. However, some are more suitable than others might be for people with bad credit.
Another thing we want to point out is that there is no such thing as a loan without a credit check. All lenders in the UK are going to want to check out your credit file. However, the good news is that with some loans, lenders are not going to look too deeply into your credit file, but they will look. Lenders can make different credit checks, the soft and hard check. If only asking to borrow a small sum the lender will usually only make a soft check on your credit file.
So, now that we have cleared these two points up let us move on to take a look at the types of loans that do not require you to ask someone to be your guarantor.
Three of the most popular types of loan are the:
- Payday loan;
- Short-term loan;
- Personal loan.
Payday and Short-term No Credit Check Loans No Guarantors
Out of the three loans we have suggested above, the short term or a payday loan might be better suited for someone with a bad credit rating.
The reason we say this is down to the fact that with both loans the amount of money borrowed is small and the loan is repaid back quickly.
With the above in mind, lenders do not see you as being too big a risk, even if your credit rating is by no means perfect. Of course, they still have to consider your credit rating as all lenders do.
So let us break down the two and look at the differences of them.
Is A Payday Loan Suitable for Your Needs?
A payday loan might be a suitable option if you are looking for a loan that doesn’t require a guarantor and which is generally lenient for credit checks and you need to borrow money fast in an emergency.
Payday loans are quick to apply for and the lender does not put too much focus on your credit rating although they will look at it. You can apply for the loan within minutes and get an instant decision and if approved it may be possible to get your hands on the money on the same day.
Payday Loans for Emergency Financial Outlays
A payday loan might come in handy to pay any financial outlay that is unexpected. Some of the most common reasons people apply for payday loans is:
- To pay off a bill that requires paying before your next payday and that is some time away;
- To meet repair bills from such as an appliance you cannot manage without until payday or your vehicle;
- To get money paid into your bank account to clear an unexpected overdraft that you know you are going to be charged huge fees.
Of course, you could apply for a payday loan for any reason; it does not need to be any of the above.
How Much Can I Borrow With A Payday Loan?
Generally, most lenders will allow you to borrow between £100 and £500 with a payday loan.
The loan can be repaid back in one lump sum with any interest on your next payday or you can spread out the loan for up to three paydays.
When considering the term of the loan you do have to factor in that interest is charged on payday loans on a daily basis. Therefore, the longer you take to repay it back, the more interest will be added on.
When looking at payday loans the interest is usually shown as thousands of percent APR. The APR is the annual percentage rate. The amount of interest the loan will accumulate over a year. However, in the case of the payday loan you will not be paying the loan back over the year. Instead, you will repay it in either one lump sum on payday or spread it out for a maximum of three months, or paydays. Therefore, the loan is not going to attract the interest rate shown.
You also have to remember that payday loans can become an expensive way of borrowing if you find you cannot repay the loan on time. With this in mind, always ensure that the loan is affordable and you are not going to be left short when your next payday comes around and the lender takes their money back.
Is A Short-term Loan More Suitable?
A short term loan might be more suitable for your needs if you need to borrow a larger sum of money than what is offered with a payday loan.
With short term loans, lenders usually offer between £500 and £1,000. This money can be spent in any way you like, as lenders do not usually ask why you need to borrow the money.
Lenders will generally allow you more time to repay the loan and this is usually up to one year, but may depend on the lender, with some offering more time.
When considering a short term loan and how long to take the loan over you might want to bear in mind that spreading the repayments out over a longer period will keep the repayments low, however, in the long run the loan is going to cost you more as more interest is added on.
The interest on payday loans will be calculated by the APR and usually the lower the APR the less interest you will pay. Of course, you also have to take into account the fact any fees that might be added onto the cost of borrowing.
Should A Personal Loan be considered?
Another type of loan where you do not need a guarantor is a personal loan. However, this loan is usually one of the most difficult to find approval for if your credit rating is less than perfect.
With a personal loan lenders will usually permit you to borrow up to £15,000 and spread the repayments back over 36 months.
This is a bigger commitment and you are asking to borrow a larger sum of money so therefore the lender is going to consider your credit rating more than they would with the payday or short-term loan. However, this is not to say that you will be turned down, the lenders we work alongside also consider current circumstances.
What about Secured Loans?
Another type of loan that is usually offered to people who have a bad credit rating and who want to borrow a large sum of money, is a secured loan.
With this loan something of value, typically your vehicle or property needs to be put up as collateral. If you find you cannot repay the loan the lender can take you to court to take possession of whatever you secured to sell and pay off the loan.
We have not included the secured loan specifically in our list of loans, as a great deal of thought needs to be given before signing up on the bottom line for a loan of this nature.
However, if you do need to borrow a large sum of money and you do have a bad credit you might want to consider this type of loan as a last resort.
What Is The Criteria For Borrowing in the UK?
All lenders in the UK will state criteria that you have to meet if you are considering submitting an application for a loan. The basic criteria include:
- Aged 18 or over;
- Having a regular income (work or benefits);
- Living in the United Kingdom;
- Holding a UK bank account in your name;
- Having a debit card;
- A direct debit can be created on the bank account.
Why Lenders Need Your Bank Details
Lenders ask for your bank details while you are signing up for a loan, as this is how the funds from the loan will be paid to you.
Providing you are approved for the loan, and depending on the amount borrowed, lenders may pay the loan funds into your account on the same day. This can be a lifeline if you need to get hold of money fast to meet an emergency.
Lenders will also need your debit card details and need to set up a direct debit so they can take the loan repayments from your account on the scheduled dates.
How Easy Is It To Sign Up For A Loan?
We have made it very easy to sign up for any type of loan. In just a few simple steps, it is possible to search with a wide panel of lenders from the UK. All you have to do is:
- Tell us how much money you need to borrow;
- Tell us how long you would like to take the loan over;
- Provide us with your personal details;
- We can search with a panel of lenders and within minutes you get a decision;
- If we match you with a lender you can check the loan details and if happy go ahead and sign for the loan.
Benefits to Finding a Loan with Our Help
There are numerous benefits to finding a loan with our help. The biggest of these is the time that can be saved when compared to making a search for a loan yourself.
You would have to be extremely lucky to find approval for a loan with the first lender you applied. More often than not, you will be turned down and this means you have to go through the entire loan application process again. Multiple searches not only take time but also affect your credit rating negatively.
With us within minutes, you know if you are approved and we can search with multiple lenders from you only making one single application. If one lender turns you down, we simply move onto the next one.
Other benefits include you having access to lenders who also consider your current circumstances along with your credit score. Lenders also offer numerous loan options, affordable loans and offer the most competitive rates of interest.
We make finding no credit check loans no guarantors a great deal easier to find. The application process is fast and easy and you get an instant decision. You can benefit from lenders who understand that your circumstances might have changed and if approved money may be paid into your bank on the same day. Apply with our help for your loan today whether looking for a payday loan, short term loan or a personal loan we work alongside a panel of lenders offering them.