It’s almost impossible to be approved for a loan with a bad credit score. It’s also not easy to convince lenders to give you their money without the backing of a guarantor. That notwithstanding, it takes too much time to get a loan approved & processed even with a good score and a legitimate guarantor.
Such statements are true in regards to guarantor loans but they all become obsolete in the context of No Guarantor Loans. With these loans, you will secure a loan regardless of how stained your credit score is. Most interestingly, you don’t require a guarantor to have your loan approved. This article has explained everything you need to know in regards to this topic in details. Be our guest.
No Guarantor Loans: What Exactly Are They?
To best understand what No Guarantor Loans are, it’s best that we first define who a guarantor is in a lending/borrowing process. A guarantor is a person who offers to carry the burden of repaying the borrower’s debt in case the latter fails to repay their loan as per their agreement with the lender. In such a case, a guarantor is a key player in the loan deal.
No Guarantor Loans, on the other hand, involve the borrower and the lender only. If the borrower fails to honour his/her end of the deal, he/she carries the burden of noncompliance.
Lenders have different eligibility tests for different loan applicants. However, most of them require a borrower to be either employed or self-employed, be at least 18 years, and be a resident of the UK.
When applying for a No Guarantor Loan, you will have to fill an online application form in which you will indicate your address, bank account details, among other personal information. The lenders must thoroughly audit that information before confirming your loan eligibility.
Please note that even though lenders are mandated by law to verify your credit history, their findings do not form part of the eligibility test. You can still apply and be approved for these loans even with a bad credit score.
No Guarantor Loan Limits and Approval Time
Once you fill the online application on the website form honestly & correctly, you then submit it to the lenders and wait for their approval/rejection. If rejected, you will be notified within minutes.
If your no guarantor Loan is approved by any of our lenders, the money will be in your account within a few hours. With a tech-advanced bank, you can get the money within 15 minutes or less. These loans mostly range between £100 and £5,000 but it’s your monthly earnings that determine the amount that you can be approved for.
Benefits of No Guarantor Loans
These loans are popular because of these four main benefits:
- They are easy and convenient to apply as you will do it online. No documentation is needed.
- You get your money faster than any other loans. If you need money for your household needs, there are no better loans to apply for.
- No hassles of finding guarantors. What’s more, you will not have to disclose your financial situation to a third party.
- You will get these loans even with a bad credit score.
- No Guarantor Loans attract higher interest rates than other loans because of the high risk associated with them.
- You should only borrow when extremely necessary and when you have the means of repaying. Late or non-repayment is punishable.