Getting A Bad Credit Loan With No Guarantor
Credit and credit scores are some of the most worrying concepts in the world of lending and loans. If you want to borrow money from virtually any company, from a bank or building society, to a payday lender, then you’re going to need at least some kind of reasonable credit score.
Unfortunately, while it takes years to develop a good credit rating, it only takes a matter of minutes for your credit score to be demolished by a failure to pay off your loans on time, or a mistake.
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Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
When your credit score is less than perfect, your financial world begins to crumble. Not only will you have a hard time getting the loans that you need, but you may also find that you don’t get approved for things like rental agreements or mortgages either.
Another big issue with having bad credit is that if something goes wrong in your life and you need to borrow money quickly, you might have a hard time convincing anyone to give you any cash.
So what can you do?
The good news is that as the loan and lending environment has evolved over the years, companies have begun to introduce different kinds of loans, specifically for people with bad credit. These loans are designed to take other things aside from your credit rating into account, such as your affordability levels, and your willingness to pay back the money quickly.
What are Bad Credit Loans?
To understand what bad credit loans without a guarantor mean to your lending potential, you first need a basic understanding of quick loans for people with bad credit. Usually, these lending options are available in the form of short-term or payday loans. That means that instead of borrowing cash and paying it back gradually over a series of months, you pay back almost everything that you owe within 30 days or less.
Short-term loan providers can give you a lot more flexibility to work with when it comes to borrowing money, because they know that they’re going to be getting the cash they’re owed back from you within a very short space of time. Another thing to note about bad credit loan providers, is that although they will still check your credit rating and history, they’ll also look at other things to see whether you’re eligible to borrow money. This means that you might have to go through an affordability check where you tell your lender about how much money you earn each month.
Unlike a lot of conventional loans, bad credit loans from payday lenders are often very easy to apply for – particularly if you’re working with a broker like Boutell. All you need to do is supply some basic information about how much money you want to borrow, what kind of income you have, and so on, and we can get back to you with a list of lenders that are ready to offer you a small loan with bad credit.
More often than not, the entire application will take place online, and you’ll be able to get the money you need sent to your bank account within a period of 24 hours or less.
What’s a Loan without a Guarantor?
Now you know what bad credit lending looks like, you can start to get a better insight into loans that come without a guarantor. Bad credit loans with no guarantor are short-term loans that can be offered to you without the security of a guarantor bundled into the lending agreement.
As people across the country have struggled to get access to the credit that they need from traditional lenders, many loan companies have begun to offer guarantor loans as a way to borrow cash fast. With a guarantor, you can attract the attention of conventional lenders by showing them that you’ve got someone lined up to pay off your loan if you can’t adhere to the terms of your agreement.
In the right circumstances, guarantors can be a helpful way to give strength to your loan application and ensure that you can get access to better terms. However, it’s not always easy to find a guarantor that’s willing to pay off your loan for you. If you’re dealing with a financial emergency, you might not have people in your family or close circle of friends who can afford to manage your loan expenses on your behalf. What’s more, you might not be able to find someone to be your guarantor who has better credit than you.
Fortunately, bad credit loans without guarantors mean that you can still borrow the money that you need, but you don’t have to bring a guarantor with you into the agreement. This means that it’s much easier to get hold of the money that you want, without any complicated processes or hoops to jump through.
The lack of a guarantor takes some of the stress off your shoulders, because you’re not going to ruin a relationship if something goes wrong with your urgent loan. At the same time, you might find that you can access the money that you need faster when a guarantor isn’t involved because no-one else has to fill out any forms or complete extra credit checks.
How Can You Get a Bad Credit Loan?
Unlike guarantor based loans which require you and your guarantor to go through comprehensive credit and affordability checks, bad credit loans without a guarantor are very quick and easy to apply for. Most people will have absolutely no problem applying for this kind of loan, even if they’ve been rejected from loan requests in the past.
If you’re over the age of 18 and therefore classed as an adult, and you live in the UK, then you’re already on the right track. You’ll also need a UK bank account that your credit can be paid into, and you’ll have to show some proof that you have a regular source of monthly income that you can use to pay off what you owe.
With Boutell, getting a bad credit loan without a guarantor becomes even easier, because you don’t even have to deal with the headache of finding the best deal on your own. Instead, all you do is enter your details into our application form, and we’ll deal with the complicated work on your behalf. We can take your details to reputable credit providers in your area and allow them to conduct a soft credit check that doesn’t leave any fingerprints on your file.
Because the soft credit checks aren’t going to leave a mark on your file, we can test the waters with dozens of different lenders without putting your credit in danger. Additionally, this means that we can come back to you with information from plenty of lenders who are willing to give you the money that you need fast.
Should You Get a No Guarantor Bad Credit Loan
A no guarantor bad credit loan takes a lot of the headaches and stress of getting a loan off your shoulders when you need to borrow money fast. Typically, applying for cash advances with a bank or building society can be a very time consuming and complicated process. You may have to meet with bank representatives in person to discuss your options, and if you need to apply for help from a guarantor, you’ll also have to spend a lot of time looking for someone who has the right credit rating.
Even if you manage to find someone who can act as your guarantor to help you get your loan, you’ll need to wait around until that person is available to sign the paperwork with you and prove themselves to the lender. This means that applying for quick cash becomes a more time-consuming process.
Although bad credit loans and other short-term lending options won’t always be the right solution for every lender, they do have a lot of benefits to offer in the right circumstances. These loans are often quick and easy to apply for, meaning that you can get approval for a loan within a matter of minutes, rather than waiting for days at a time.
Most bad credit loan providers won’t even ask you to explain why you need to borrow the money that you’re asking for. As long as you can prove that you can afford to pay the money that you borrow back, there’s no need to share your life story with your lender.
Getting a Bad Credit Loan
It’s safe to say that getting a loan when you don’t’ have the best credit isn’t exactly a walk in the park. However, it doesn’t need to be a nightmare experience either.
Before you rush into considering things like guarantor loans to improve your chances of borrowing the money that you need, find out whether you might be able to get a bad credit loan from a provider who doesn’t need a guarantor first. With Boutell, you can fill out your application and start sorting through potential lenders in a matter of hours. What’s more, you could find that you have access to the cash you need within less than a day.