What is a no Guarantor Loan?
In some circumstances, a lender may want some added certainty that a loan will be repaid before they approve a loan. One way of doing this is to request that the borrower provide a guarantor. A guarantor will enter into an agreement with the lender, agreeing to take over the loan repayments should the borrower be unable to make them for any reason. This reduces the level of risk for the lender but can also make the process of obtaining a loan more difficult for the borrower, as they will need to find someone who is prepared to act as their guarantor. A no guarantor loan is one where the lender will not ask the loanee for a guarantor; the loan application is approved solely on the applicant’s circumstances.
What can Loans with no Guarantor be Used for?
Once the loan itself has been approved, the loan can then be used in the same way as any other loan. However, we do strongly recommend that short-term loans are only used as an emergency borrowing option. Payday loans are not an appropriate solution for longer-term debt issues.
Who can Apply for a no Guarantor Loan?
As an FCA (Financial Conduct Authority) authorised lender we are required to lend responsibly. As part of that process, we need to gather as much information as we can about the loan applicant to ensure that when we lend, our customers are in a suitable financial position to repay us on time, without incurring further undue financial hardship. In the first instance, we will only consider applicants who are:
– 18 years old or older
– A UK resident
– Employed or self-employed with a minimum monthly take-home salary of £750.
What Checks are Required for Loans with no Guarantor?
We need to check that you are in a suitable position to repay your loan. We will also need to confirm your identity. To do this we will:
– Carry out a credit check
– Carry out an affordability assessment
– We may also request your bank statement(s)
With this information, we will be able to assess your suitability for our no guarantor loan.
How Much can I get and What is the Interest Rate?
Our no guarantor loans are available up to a maximum of £1000. The minimum that you can borrow is £200. The APR for our loans is 1265%. Our normal repayment period is three months. To make it easier to work out how much you will be repaying each month, we have provided an online instalment calculator. If you enter the amount you wish to borrow, the calculator will tell you how much interest you will have to pay and also how much you will be paying back each month. Provided you make your repayments on time, there will be no additional charges or fees.
What are the Advantages of a no Guarantor Loan?
The main benefits of opting for a no guarantor loan are:
– You don’t need to find a guarantor! Discussing money matters with friends and family is rarely an easy matter; asking someone to be your guarantor can be embarrassing. In addition, should you fail to keep up the repayments, your relationship with the guarantor may become strained.
– Finding a guarantor takes time. Particularly if you want access to fast cash, the delay involved in finding someone to guarantee your loan could be the last thing that you want.
– Less paperwork. Checks need to be made on a guarantor as well as on the borrower, which takes additional time and would require additional paperwork.
– Not everyone is suitable to be a guarantor! Guarantors usually must have a good credit rating themselves. It can be embarrassing for friends or relatives to admit that their credit rating is too poor to allow them to be a guarantor. In some cases, it may even be difficult to find a guarantor in the first place.
I Have a Poor Credit Rating: can I Still get a no Guarantor Loan?
We take several different factors into consideration when making our decision. You will have a numeric credit score which may be towards the higher or the lower end of the range. Each lender (including us) puts a different weight on the credit score when it comes to deciding whether to lend or not. Even if your credit score is low, if you meet our other criteria then it may be worth applying. If unsuccessful, we can suggest a number of other options that you may wish to consider.
How Quickly can I get a Loan with no Guarantor?
The first step to obtaining your loan is to apply online. Once you have entered all the information required, we can give you a provisional answer almost immediately, as your application is processed automatically. If you are approved at the initial stage, we will send you the paperwork online, setting out the terms and conditions for your no guarantor loan. Once you have signed the relevant documents electronically, if approved, the cash will be transferred to your bank account. We will always aim to fund your loan on the same working day we receive your documents.
What is an FCA Authorised Lender and Broker?
As an FCA authorised lender, we are required to make sure that:
– Customers have clear information on our charges, interest rates, and instalment plans
– We lend responsibly which means we only lend to people who we believe are able to afford the loan repayments
– We act with integrity, honesty, and transparency
We are a direct lender and a broker. As a lender, our company lends directly to our customers – no third party is involved. As a broker, if we are unable to lend to you or should your application be unsuccessful, we can provide links to alternative providers who may be able to assist you in securing a short-term loan or in improving your credit report.