Loans for bad credit no Guarantor UK
Bad credit? Can’t have a guarantor? No worries. The no guarantor loans will be ideal for you. This is because these are payday loans designed for people who cannot have or don’t want a guarantor. Previously, most direct lenders shied away from providing loans to people with bad credit. They felt it was risky so having a guarantor was an easy way of securing a loan. However, things have now changed; more and more lenders are now providing no guarantor loans to those with bad credit.
As opposed to the previous times when no guarantor loans were rare and featured unfavourable terms, now the terms are better, giving you more choice and better repayment terms. This is because many direct lenders realized they were locking out more customers. So, what is a no guarantor loan? This simply means that you will solely be responsible for the loan you take out. You will have to stick to the agreement with your direct lender and ensure that you pay back the loan in full and within the time specified.
No guarantor loans typically feature high APRs than the loans that do not require a guarantor. Reason for this? These loans have no safety net for the lenders in case you fail to repay the loan. However, this is not true for all lenders and many now offer highly competitive no guarantor loan rates. Consider shopping around and making comparisons for the best lender to suit your needs.
With this in mind, getting a no guarantor loan has been made easier. Below are the reasons why:
- Many lenders now use the most relevant and up-to-data when assessing your application.
- Most lenders will focus on your current employment and financial status rather than your credit history and score. Many lenders then offer no guarantor bad credit loans that have been specially designed for people with poor credit histories.
Considerations before taking out bad credit no guarantor loans
- A very vital question many ask is how to determine the APR rate on the bad credit loans with no guarantor. This is mainly derived from the amount of risk to the lender. This means that people with bad credit typically pay a higher interest rate as they pose a greater risk. This is why having a guarantor will be beneficial to the lender as it provides an extra layer of security. However, there’re lenders who specialize in many different types of loans but the difference can be negligible.
- An important consideration to make is to always use lenders who are authorized by the Financial Conduct Authority and who are fully transparent regarding every aspect of their loans. This will ensure than there will be no surprises in form of hidden fees. This means that if you have bad credit, you can quickly compare the bad credit no guarantor loans offered by different lenders in the UK. This will then allow you to make an informed decision helping to ensure that you get the very best deal.
- Another important thing to note is that you can not get a no guarantor loan without a credit check. If you’re eligible to accept a loan from an authorized and reputable direct lender, bear in mind that they will have to carry out a full credit check before releasing any funds. This is because they are required to do so by the Financial Conduct Authority. Be very wary of a company that offers to get you a loan without a credit check. They may not be registered with the FCA and may just be misleading you.
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