There is no easy answer to the question of whether you will be approved for loans for bad credit UK no guarantor needed. In fact, no loan in the UK is going to be approved without lenders looking into your history and at the very least ensuring that you are eligible for a loan and you can afford to repay it.
Lenders would soon go out of business if they handed out loans by giving instant approval to those looking to borrow if that person had no chance of repaying. This is among the main reasons why credit ratings were introduced. To provide lenders with some idea about how you have managed credit in the past.
Whether you will be Approved for Loans for Bad Credit UK No Guarantor Depends on Your Circumstances
Just because you have a poor credit rating, it is not to say you cannot obtain a loan. It does make life more difficult trying to get one, but not impossible. Whether or not you might get approval would depend on factors such as:
- Whether you have a regular income and how much income you have coming in;
- What you pay out each month from your income;
- How much money you are applying to borrow;
- How long you want to take the loan over.
Alternative Options to Guarantor Loans
Guarantor loans are loans that lenders tend to give approval for more than other loans if you want to borrow a large sum of money and pay it back over several years. These types of loans are popular with people with poor credit ratings and it has been revealed that during 2018/2019 there has been a significant increase in the number of guarantor loans taken out. While they are popular with some people, they are not suitable for everyone and not everyone wants to ask someone to stand as their guarantor when borrowing.
If you want to borrow a smaller sum of money and you can prove you can repay it back quickly, there are alternative options for loans for bad credit UK no guarantor.
Small Loans Are Easier To Find Approval For
It goes without saying that the less the lender gives, you the lesser the risk to them if for some reason you find you cannot repay the loan. Payday loans and short-term loans are both small loans that are limited in the amount you can borrow, which is one of the main reasons payday loans come with a higher rate of approval than other loans.
How Much Can I Borrow With A Payday Loan?
The amount of money lenders may offer with payday loans differs with some offering more or some less. The amount you may be able to borrow is dependent on your ability to repay the loan more than anything else. Payday loans usually offer sums of money between £100 and £500. As we work alongside a panel of UK lenders, there is more chance of matching you up with a lender willing to offer the sum of money you need.
Payday loans can be repaid in full when your next payday comes around or you might wish to give yourself a bit of leeway by spreading out the cost for up to three paydays. It is important to remember that the longer you spread the loan over the more interest you will have to pay, so the more the loan is going to cost in total.
It is equally important to realise that short term borrowing such as with the payday loan is generally a more expensive way to borrow when compared to a personal loan. On saying this, there are advantages to the payday loan, including the fact that the approval rate is higher for someone with a poor credit rating and the funds from the loan could be paid within hours. This is an aspect that has to be weighed up when considering a payday loan and its expense.
How Much Can I Borrow With A Short Term Loan?
Again, the specific amount of money you might be able to borrow from a short-term loan will vary depending on the lender and your circumstances. Your credit rating is going to go some way towards the lender approving or denying your loan, but affordability is more at the forefront of the lender’s mind, not your history.
Depending on the criteria above, lenders may offer between £500 and £1,000 with short-term loans. Short-term loans are loans usually repaid in full in less than 12 months, but this again might vary.
All loans have interest added onto them and the longer you take the loan over the more you can expect to pay when borrowing. Calculate the minimum affordable length for the loan but do ensure that the monthly repayments are going to be affordable.
Can I Get A Personal Loan With Poor Credit Rating?
The panel of lenders we work with offer numerous loan options, including payday loans, short-term loans and personal loans.
The personal loan may be one of the most difficult of loans to get approval for if you have poor credit. This is usually down to the sum of money involved as with a personal loan lenders usually offer up to £5,000 to be repaid for up to 36 months.
This means the risk is bigger as you are borrowing more and for a longer period, in comparison to the payday and short-term loan.
While it is more difficult to be approved for a personal loan, it is not impossible. Again, it is going to rely on whether the lender thinks the loan is going to be affordable.
There is nothing to stop you from applying for loans for bad credit UK no guarantor needed. Whether lenders will approve you for a loan is going to depend on certain criteria and your circumstances. As we can help to match you up with a lender from a wide panel of UK lenders, your chances of approval tend to be higher than if you try to find a loan alone.