For many years and for most people in the UK, acquiring a loan has been a long and tedious process that does not even guarantee approval. The rise of loans with no guarantor or credit checks is a welcome relief. Modern age lenders are more willing to accommodate people who traditionally would not access loans due to a variety of reasons. Key among these reasons is bad credit, lack of a guarantor and lack of formal employment. These modern day lenders take a broader perspective when evaluating loan applications. As such, they do not impose restrictions on people with bad credit or those who do not have a guarantor.
Why Do Lenders Require a Guarantor?
When a lender decides to lend you money, they do so with a calculated risk that you are in a position to fully repay the loan in the stipulated time. After all, they are in business and would not like to incur losses and go out of business. For this reason, they put in measures to ensure that if you cannot, in your capacity, repay the loan, someone or something can pay it on your behalf. This is the role of the guarantor. The presence of the guarantor is a promise to the lender that repayments for the loan will come within the agreed schedule. That is also not enough. The lender must qualify who can be your guarantor. The person you intend to be your guarantor should have a good credit profile and should ideally have a regular job. The challenge then is in your court to find a person you can trust with your financial situation and who meets the requirements. For most people, finding such a person can be a challenge.
If you recently moved to a new place, finding a guarantor can be a real challenge. More importantly, finding a person you can trust with your financial situation is a challenge. It is important to remember that the guarantor also needs to trust you before agreeing to guarantee you – even if you have bad credit.
The Added Advantage of No Credit Check
Supposing you get a guarantor, you still have to get over the hurdle of bad credit. Traditional lenders, in particular, are very reluctant to lend to people with bad credit let alone those with no guarantor. The lenders perform a strict credit perusal that leaves most UK citizens with limited possibility for accessing the loan they need. Additionally, they require extensive documentation with very intrusive questions about your financial situation.
The reality of life for most people in the UK is that they have a bad credit that is not a true reflection of their creditworthiness. Modern-day lenders appreciate this fact and hence use other relevant factors to allow loan approval. They are willing to give you a chance at accessing the funds you need despite your bad credit and not having a guarantor.
Other Advantages of Loans with No Guarantor or Credit Checks
The modern day lenders understand the frustration of most UK residents with traditional lenders. For this reason, their products are designed to address most of the misgivings of the long treacherous process imposed by traditional lenders. In addition to having a fair chance to access loans with no guarantor or credit checks, you also get the following benefits.
- Quick approval and disbursal. After receiving your application, the lenders move to quickly approve the appropriate loan amount and make a fund transfer. In most cases, the whole process happens within a day.
- No harm is done to your credit profile. By borrowing from these modern day lenders, you ensure that no further bad effect is imposed on your credit profile. As a matter of fact, it might help you repair your credit score.
Where to Find Loans with No Guarantor or Credit Checks In the UK
It is clear that these loans are a true lifesaver for people in all sorts of financial circumstances. However, you still need to find the right lender who will offer you the most favourable rates and repayment terms. If you are looking for loans with no guarantor or credit checks in the UK, let Bonsai Finance help you. We are committed to helping all UK residents access the best financial solution in the market. Using our industry experience and powerful search software, we will guide you to the best lender that meets your needs and understands your circumstances. Log in to our portal or talk to us today.