Having bad credit can make applying for a loan incredibly tricky.
More often than not, a poor decision in your youth can come back to haunt you in today’s financial world. Whether you failed to make ends meet with your debts, or you struggled with late payments, your credit score will have paid the consequences. That means that even if you’re extra careful with your cash today, companies will still treat you as a risk when you’re applying for a cash advance.
The majority of loan providers will simply reject people with bad credit outright, requiring them to go and seek specialists for financial support instead. However, some companies also offer the option to get a loan with a guarantor.
A guarantor is someone who will agree to step in and pay off your loan for you if you fail to offer the money on time. While some people do have friends and family who can act as a guarantor in their lives, others don’t.
What do you do when you need money in a hurry, and you don’t have the credit, or the guarantor required to get a deal from mainstream lenders?
The easiest option is to seek out bad credit loans.
Unfortunately, while a £300 loan might not make you happy, it still makes the world go around. You can’t apply for a mortgage, get a car when you need one, or even pay for something on a credit card if you don’t have the credit rating that tells providers that you’re worthy of their trust. Unfortunately, if you’ve had issues with your money in the past, then this could mean that your credit is less than perfect.
As more people around the country continue to struggle with poor credit ratings as a result of unfriendly economic environments and difficult living standards, loan providers have been looking for ways to help. One option that they have given is for people to offer a guarantor as a form of security when they’re applying for their loan. This guarantor is there to step in and pay for your loan if you can’t afford to deliver the cash on time.
Guarantors can be a helpful addition to a loan, as they make it easier for you to apply for a better rate with your bank or building society. Guarantors also remove the risk of being rejected for the majority of loans, as they reassure your provider that someone will give them the money that they’re owed – even if it’s not you.
However, finding a guarantor that you can rely on isn’t easy. If you’re dealing with a financial emergency and the people that you have in your social circle don’t’ have the best credit either, then you’ll need to try bad credit loans without a guarantor instead.
As the name suggests, these loans are special lending products designed for people who don’t have the best credit but need money fast. These loans don’t ask you for a guarantor so that they can give you the money that you ask for. There’s also no collateral required to secure your loan. This means that you’re not putting any relationships or property on the line.
Companies that offer this type of service can give you access to the money you need fast, with no restrictions on how you use that money. This means that you won’t have to explain your emergency to your provider or fill out any complex forms. Although the interest rates on these loans can be a little higher, they’re also a lot more convenient than traditional loans.
If you’re required to bring a guarantor into your loan, you’ll need to find someone who’s willing to vouch for you. You’ll also have to make sure that they can fill out the forms required quickly, so you can get the money you need in a time frame that suits your schedule. Sometimes, the process can take days to complete.
On the other hand, when you apply for these types of loans, you can get the money you need into your bank account within a matter of hours. What’s more, you’re not putting your relationship with your loved ones in jeopardy.
Bad credit loans with no guarantor are quick and easy to apply for. As long as you’re over the age of 18, live in the UK and have a valid bank account, you’ll have everything you need to get started. Additionally, since you’ll be applying for your loan with a poor credit history, you’ll also need some extra information to show your provider that you can be trusted to give back the money that you owe.
For instance, most loan providers will ask you to offer up information about your employment history, and the money that you get each month in the form of income. This is so that they can make sure that you’re capable of affording the loan repayments that you’re signing up for.
Unlike with guarantor loans, you won’t have to waste time looking for someone with a better credit history than you to improve the quality of your application either. This means that if you need money to pay for an emergency like a broken down car or a vet bill, you’ll be able to access that cash a lot quicker.
Most of the time, you’ll be able to apply for the loan that you want in a range of different ways. Some companies have in-person applications where you can sit down and talk through your requirements with an advisor, face-to-face. Other organisations deliver application processes that you can handle over the phone. The easiest option of all is to apply online. If you answer all of the questions comprehensively and have a valid bank account, you can get the money that you apply for within the same day.
This type of loan takes a lot of the stress off your shoulders when you need money quickly, and without the typical headaches of requesting a cash advance. You don’t need someone extra to come along and co-sign the repayments for you. There’s also no need to offer any collateral or security in case you might not be able to pay your loan back on time.
Although bad credit loans with no guarantor can be more expensive than their counterparts for people with the best credit and guarantor options – they have many benefits to consider. For instance:
Importantly, although this type of loan isn’t always given exclusively on your credit rating, your provider will still need to check your score. According to the FCA, lenders throughout the UK must always complete a credit check before any loan is approved. Any lender that offers you a loan without checking your credit history may be more dangerous than you think. It’s important to stay away from lenders without FCA approval.
Just because you don’t have the best credit, and you don’t have a guarantor that you can use to improve your application for a cash advance, doesn’t mean you have no options. There are plenty of lenders out there that are willing to accept people for loans regardless of what their history might be with money. After all, just because you made a mistake in the past doesn’t mean that you can’t be trusted with the money you might want to borrow today.
With that in mind, remember that you don’t have to accept the first offer you’re given. Just like any other financial product, you can check your options online using a comparison website to ensure that you’re getting a deal that suits you.
Use a comparison website to check through all the different lenders in your area that offer access to money without a loan. Remember to check the APR ratings offered by each provider, the interest rates, and also any additional expenses or fees you may need to pay.