What Is A No Guaranteed Loan?

No guarantor loans mean you do not need a co-signature or someone else to guarantee the repayment of the loan with you. Typically, a guarantor loan would be used when a lender wants some added security to ensure their money will be repaid, perhaps because the primary borrower has a bad credit score.

A no guarantor loan is a straightforward loan agreement, in which the borrower is approved on their own merits and is the only person signed into the loan. In turn, a guarantor loan 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. Access to no guarantor loans will depend on the borrower’s history and personal circumstance.

Can I Get A Loan Without A Guarantor?

Your eligibility for no guarantor loans will depend on your financial status. As with all loans, borrowers will need to complete an application process and affordability checks to get the fast access to cash they need. During this process, the lender will evaluate your risk as a borrower.

Here at Wizzcash, we do provide short term loans or payday loans without a guarantor, but this is always subject to a successful application. This ensures we are lending responsibly, in line with FCA regulations. We always want to make sure customers are in a suitable financial position to repay us on time, without incurring further undue bills or additional financial difficulties.

If you are experiencing a financial emergency or something’s gone wrong and you need a quick loan, we will try to help you, but not at the expense of worsening your financial situation. Wizzcash do not provide guarantor loans altogether. However, we are a broker, as well as a lender and we could connect our customers with other lenders or services that might be able to provide them with no guarantor loans, in the event that we cannot help you out ourselves. It is important to note that loans with no guarantor could be more expensive than alternative sources of credit, including loans from alternative providers that may need a guarantor signature.

Things To Think About: Guarantor Vs Non-Guarantor Loans

Guarantor loans can be extremely useful and are marketed towards people who have poor credit histories. This is because they provide the necessary access to cash, we all need at some point in our lives. Payday loans are also typically used by people who do not have access to the money they need immediately and are often relied upon by those with bad credit histories and most often, by those in low income households.

Research by the University of Bristol and Citizen’s Advice Scotland identifies that there is an annual cost of being classed as living within the relative poverty bracket. This is known as the poverty premium, wherein goods (including basic services like energy to your home as well as financial products such as loans) are only available at a high interest or cost for those who are not able to show huge take-homes every month. Essentially, there is a discrepancy between the financial services offered to low income households to those who are more comfortable, for example, those people who do not have the money available to pay their car insurance in a lump sum are forced to pay higher monthly payments that could total £100s more than the actual cost of the product.

This is the same premise for why so many people reach for guarantor loans, because they are charged too much to borrow independently. In turn, a non guarantor payday loans can fulfil the same purpose; they are suited to and used by consumers who do not have the money available to deal with the emergency or bill at hand. As a result, those consumers have to pay high interest on their loans.

A guarantor loan could be a cheaper alternative to the kind of no guarantor loans that Wizzcash offer. However, as we have already established, a guarantor loan requires you to know someone with a prime credit score who is willing (and able) to co-sign an agreement with you. For those who live in low income households and perhaps even disadvantaged areas, a guarantor loan might be unattainable because consumers do not have family or friends that could be a suitable guarantor.

A guarantor loan could be a cheaper alternative to the kind of no guarantor loans that Wizzcash offer. However, as we have already established, a guarantor loan requires you to know someone with a prime credit score who is willing (and able) to co-sign an agreement with you. For those who live in low income households and perhaps even disadvantaged areas, a guarantor loan might be unattainable because consumers do not have family or friends that could be a suitable guarantor.

Guarantor loans are a unique financial product that does have notable advantages. However, they are more akin to a personal loan, typically available from £1000 and up. Wizzcash no guarantor loans could help fill the gap below that, as we provide £300 – £1000 loans. As a no guarantor loan is available in smaller sums, it could prevent some consumers from over borrowing and committing to long-term repayment scheduled they simply cannot keep up with. It is important to know that the type of loans we are able to provide are known as high cost, short term credit.

High cost short term credit is defined by their small repayment periods (of under a year) and their high APR of 100%. They are designed to be convenient cash injections to help all customers through a financially tight period and should not be relied upon as a sustainable source of financing.

Can I Get A Loan With Bad Credit And No Guarantor?

Here at Wizzcash, we do not automatically disallow applicants who do not have a perfect credit score. Also, just because you have a bad credit, does not mean you will only be eligible for a guarantor loan. No guarantor loans for applicants with bad credit are available from Wizzcash but all customers will still be subject to an eligibility criteria.

Hard times and financial emergencies fall on all of us and we do not believe that individuals who are already under pressure should be automatically excluded. Bad credit is not always an accurate representation of someone’s financial situation, because it can show misdemeanours or marks against your credit from 6 years ago. We will take your current earnings into consideration for all loan applications. Each lender (including us) puts a different weight on the credit score when it comes to deciding whether to lend or not.

What Checks Are Carried Out For No Guarantor Loans?

We need to check that you are in a suitable position to repay a no guarantor loan. We will also need to confirm your identity. To do this we will:

  • Carry out a credit check before lending to you
  • Carry out an affordability assessment
  • We may also request your bank statement(s)

How To Get A Loan With No Guarantor

To apply for no guarantor loans, you can fill out our easy application form. It won’t take long, but you will need to provide us with some basic information about yourself so we can run some affordability checks. You will also need to:

  • Be over 18 years old
  • A legal UK resident
  • Employed or self employed with a monthly take home salary of £750 (minimum)

If you have previously only been able to get a guarantor loan, it’s probably a sign that you look quite risky to lenders. We understand that this can be a tricky situation, especially when you need an emergency loan, and we will always try to help however we can!

If we are unable to help you by fulfilling your loan request, we may be able to connect you with partner services. This means you only have to fill out one application to find a range of no guarantor loans options available to you, or alternative financial products that could be best suited to your situation.