Not everyone who needs a personal loan will be able to secure one using a guarantor. If you are looking for short term finance, you’ll be pleased to know that there are lots of no guarantor loan options available in the UK.
It’s true that no guarantor loans tend to carry higher interest rates, and can be slightly more difficult for people with bad credit to obtain, but that shouldn’t put you off from applying! At ThisLender, we work with a panel of lenders offering no guarantor loans, so we are able to help you find a suitable lender for your needs quickly.
Read on to find out if a no guarantor loan is right for you:
A non-guarantor loan is a type of personal loan that does not require an additional person to co-sign the loan agreement. With no guarantor loans, the term agreements stay between you and the lender, without third party involvement from a guarantor.
Before deciding which loan product is right for you, it’s important to first understand what a guarantor is.
A guarantor is a person who agrees to take responsibility for your loan repayments in the event you default on your loan. Typically, guarantors are trusted friends or family members who are comfortable taking on your debt if an issue arises with your loan repayments.
So, in comparison to this, non-guarantor loans work by only involving the lender and yourself. Before securing any loan, you have to agree to the lender’s conditions. For no guarantor loans, there is no third person present to sign the loan terms and conditions with you.
Non-guarantor loans are common in the UK, and make up the majority of personal loan agreements.
Good question. There are lots of reasons why a lender might require you to have a guarantor co-sign the loan agreement. The main reasons for needing a guarantor include:
Yes. These no guarantor loans tend to have a far simpler application process than guarantor loans. This means that you can usually receive your no guarantor loan in a matter of hours, or no the next day.
Applying for a no guarantor loan is typically easier if you have a good credit score and borrowing history. Sometimes, first time borrowers might face issues, due to the fact the lender is not able to see a positive track record of paying off credit.
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Access from £50 to £5000†
There are lots of benefits to no guarantor loans. The main advantages of this type of funding include:
Unfortunately, non-guarantor loans also come with some negatives. Before taking out a loan product it’s important to be aware of all of the pros and cons, so be sure to read some of the main disadvantages of no guarantor loan products:
If you have adverse credit, and are worried about your approval chances for no guarantor loans - fear not! Your credit score can always be improved. However, there are no quick shortcuts.
The first step to improving your chances of approval is to know exactly what your financial situation is. Get hold of your credit file and make sure that everything is correct and appearing as it should.
After that, you need to start to take steps to improve your score. There are lots of ways you can do this, including:
Get more help with improving your credit score.
You should only ever borrow money in the event of financial emergency, when you have no other way of securing funds. Non-guarantor loans are not to be spent on non-essential purchases - such as on shopping trips or leisure activities and holidays.
Instead, non guarantor loans should be used for:
Remember, there is no guarantor involved in this loan, which means you take full responsibility in the event of non-payment.
If you want to apply for no guarantor loans through a direct lender, you can usually do this online using the lender’s website. The online application process shouldn’t take you long to complete, however it’s important to take time and research no guarantor loans direct lenders to find the best deal.
Not all direct lenders offering no guarantor loans will propose the same interest rates and repayment terms. As a result, it can be quite difficult sifting through the hundreds of UK providers to find the best one. To help with this, we’ve put together a list of direct lenders who are based in the UK.
Alternatively, some people prefer to use loan brokers, like us! At ThisLender, we work with a panel of no guarantor lenders, and are able to match you a suitable loan offer that's best deal for your situation in minutes.
As mentioned, the application process for non-guarantor loans is relatively straightforward. If you decide to use our broker service, all you have to do is fill in our online application form. This tends to take just 5 - 10 minutes as we ask some basic questions to get a better idea of your situation and needs.
Shortly after submitting your application, if successful, you will receive a quote from a lender on our panel. This quote is free of charge, and you are under no obligation to continue with the agreement.
After receiving your quote, you can decide whether to procceed or not with your no guarantor loan directly with the lender. At this stage, you will be presented with the loan terms and conditions. Make sure you fully understand the interest rates and repayment period terms.
Once the loan has been approved and the contract has been agreed upon, most of our lenders are able to release funds on the same day, or in as little as 10 minutes². Which means if you’re looking for a fast loan with no guarantor - you’ve come to the right place!
Yes, maybe. However generally speaking, no guarantor loans for bad credit are difficult to obtain. The lender might require you to take out a guarantor loan because of the higher risk your bad credit history poses.
With that being said, at ThisLender we work with a panel of lenders who are well versed in arranging a variety of loan options, not just no guarantor loans. By using free online application, we'll be able to match you to a suitable ledner for your situation.
Here at ThisLender, we’re working hard to build a safe space for consumer credit where our customers feel comfortable getting the information they need to make smart borrowing decisions. Applying for a no guarantor loan through ThisLender has lots of benefits:
If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a loan you can get free and confidential advice from MoneyHelper (formerly The Money Advice Service), National Debtline or debt charity StepChange.
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Access from £50 to £5000†
Representative 49.9% APR
Representative example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28 Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. Rates from 45.3% APR to 1721% APR - your no-obligation quote and APR will be based on your personal circumstances. The minimum repayment period for any loan will be 90 days from the date the loan is issued. The maximum repayment period is 3 years.
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