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Cover
Types
Eligibility
Types
- Health insurance for Children
- Family health insurance
- Health insurance for over 50s
- Health insurance for over 60s
- Health insurance for over 70s
- Small business health insurance
- Corporate health insurance
- Group health insurance
- Health insurance for self-employed
- Comprehensive health insurance
- Health insurance for pre-existing conditions
- Couples health insurance
Cover
Insurers
Types
Eligibility
We don’t always get to decide when we need a loan. Sometimes, the need arises when you have poor credit and no guarantor to assist.
However, having a poor credit history shouldn’t force you to rely on a guarantor — you can still apply for loans. Just bear in mind that loans labelled as ‘non-guarantor’ will not be the best loan agreement deals out there. Getting a better credit rating will lead to better deals down the line.
If you have no time to wait to improve your bad credit score, let’s explore non-guarantor loans.
How to apply for a loan without a guarantor
Comparing secured loans is crucial to find the best terms and rates. Here are the steps to take during the application process:
Compare loans
Look at various options and consider factors such as the APR (Annual Percentage Rate), monthly repayments, and the total amount to be repaid. This will help you find the most cost-effective loan.
Choose a deal
Select a deal and provider that offers the best combination of APR, term length, and monthly payments. Ensure that the loan is affordable based on your financial situation.
Fill out the application form
Provide your name, address, and bank details, along with a summary of your monthly income and expenses. Double-check all information for accuracy to avoid any issues during processing.
Loan calculator
This helps you get a more accurate finance estimate
Representative example
What is a non-guarantor loan?
Non-guarantor loans are loan options for people with poor credit or no credit history. The person signing the agreement agrees to be solely responsible and pay back the loan entirely. If they can’t repay and fall behind on their monthly repayment schedule, they accept whatever consequences come from that situation.
Unlike guarantor loans, where someone with good credit promises to pay if you can’t, non-guarantor loans don’t require such a person. They’re made for those who either prefer not to involve someone else or don’t have anyone suitable to ask.
These loans are advertised as bad credit loans, which is great news for these applicants. The downside is they usually come with a higher interest rate than regular loans.
How do no-guarantor loans work?
No-guarantor loans are similar to regular loans, but you don’t need someone else to co-sign for you. Instead, lenders look at your credit history, credit score, income, and other details to decide if you qualify.
To apply, you fill out an online form with basic information like your job status, bank details, and monthly expenses. Once approved, the money is transferred to your bank account quickly. You can use it for whatever purposes you see fit.
As the only one paying back a no-guarantor loan, be serious with your monthly repayments. If you’re struggling to keep up with them, let the lender know right away. This allows you and the lender to have a discussion about alternative repayment plans that are more manageable and sustainable for your current situation.
Can I get a non-guarantor loan with bad credit?
If your credit score is low, getting a no-guarantor loan is more challenging because lenders see you as more risky, making default more likely. However, there are some options (we’ll discuss this difference in more detail later on):
- Unsecured loans for bad credit, no guarantor — These are available for people with a history of debt struggles and a low credit rating. Options are limited, and interest rates tend to be higher.
- Secured loans — These require you to use a valuable asset, like your home or car, as collateral. Interest rates are lower, but the lender could take the asset if you can't repay it.
Of course, having a good credit rating in the first place makes it easier to qualify for loans at standard terms and interest rates. If you have the time, it’s better to work on getting a good credit score before applying.
Lenders check if you can afford the loan, so having a backup plan for financial difficulties is wise. Also, paying your bills on time and managing your money well should boost your credit score, which means you’ll qualify for better loan rates later on.
Who is eligible to apply for a no-guarantor loan?
| To apply for a loan you need | Requirements |
|---|---|
| Your personal details, such as your name and birthdate | You need to be at least 18 years old—some lenders may require you to be older. |
| Your bank account information | Demonstrating a steady income is crucial as it shows you can handle monthly repayments. |
| Your current address and addresses from the last three years | An active bank account is required for the loan transactions. |
| Details about your job | Lenders will assess if you can comfortably afford the loan repayments without compromising your financial health. |
| You need to be a UK resident and have a permanent address |
All it takes to compare loans is a bit of information about you and your finances.
Compare loansHow to apply for a no-guarantor loan
Start by finding a direct lender who offers loans for adverse credit without requiring a guarantor. You can compare different no-guarantor lenders online to find one that fits your needs. Once you find a suitable lender, check their eligibility criteria. If you meet their requirements, proceed with the loan application.
Keep in mind that if you have very bad credit, it will be hard to find a lender who offers loans without a guarantor. Consider other options like secured loans or loans with a guarantor in such cases. There are still options available to help you get the loan you need.
What’s the difference between a secured loan and a non-guarantor loan?
Note: A no-guarantor loan can be either secured or unsecured, but in this section, we’ll compare unsecured loans that have no guarantor involved with secured non-guarantor loans.
Secured loans and non-guarantor loans have some key differences:
Collateral requirement:
Secured loans require collateral, which is an asset you pledge to the lender. If you fail to repay the loan, the lender will take your collateral. For example, a mortgage is a secured loan for which your home is the collateral.
Unsecured loans without a guarantor don’t need any security or collateral. You don’t need to provide an asset as security. For instance, personal loans without a co-signer are non-guarantor loans.
Interest rates:
Because the lender has the collateral to fall back on, secured loans usually have lower interest rates. This makes them cheaper.
Non-guarantor loans have higher interest rates since they are riskier for lenders. Without collateral, lenders charge more to compensate for the risk.
Borrowing limits:
You can borrow more significant amounts with secured loans because the collateral ensures less risk.
By the same logic, the borrowing limits are lower if you don’t have collateral to offset the risk.
What are the pros and cons of a loan without a guarantor?
| Pros | Cons |
|---|---|
| Fast approval — These loans are approved quickly, so you receive money fast, which is ideal for those needing cash urgently. | Higher interest rates — Due to increased risk for lenders, these loans typically have higher interest rates. |
| No guarantor needed — You don’t need someone else to vouch for you to borrow money. | Lower maximum loan amounts — Lenders often provide lower maximum loan amounts. |
| Available for bad credit — Some lenders consider factors beyond credit score, allowing even those with poor credit to access these loans. | Less flexible repayment options — These loans have limited repayment flexibility, which may make it harder to adjust payments if your circumstances change. |
| Potential cycle of debt — Missing payments can lead to high interest rates and late fees, possibly resulting in a cycle of debt over time. |
What can a no-guarantor loan be used for?
A loan with no guarantor can be used for various purposes, such as urgent expenses like unexpected vehicle maintenance, essential home repairs, or replacing important household items like a washing machine.
Before taking out a no-guarantor loan for whatever purpose, carefully assess your finances. Consider if borrowing money is necessary or if there are other ways to get the funds you need. If you decide to borrow, figure out exactly how much you need for a particular expense. It’s best to borrow only what you really need instead of taking out more.
What is a no-guarantor loan not suitable for?
It’s essential not to use loans without a guarantor for unnecessary expenses or to supplement your regular income. These loans are meant for short-term needs and must be repaid within a specific timeframe.
Using such loans responsibly means avoiding using them for frivolous purchases or daily costs like groceries or utility bills. Luxury items, unnecessary electronics, holidays or travel expenses, tickets, and subscriptions are not suitable uses, either. As long as you avoid borrowing for non-essential or impulse purchases, you won’t accumulate debt that isn’t easy to manage in the long run.
Is a no-guarantor loan available without a credit check?
Most non-guarantor loans involve a credit check, which is a standard part of the application process. However, there are distinctions between the types of credit checks:
- Soft credit check — Initially, lenders perform a soft credit check during the application process. This type of credit inquiry doesn’t impact the borrower’s credit score and is used to assess basic financial information.
- Hard credit check — If the borrower decides to apply for the loan and the lender sees them as a potential borrower, they will conduct a hard credit check. This check gives the lender a detailed view of the borrower’s credit history. It will affect the borrower’s credit score, usually by a small amount.
Some lenders offer loans with relaxed credit score requirements or alternative credit assessments, which is the closest thing to loans without credit checks. Also, remember that applying for multiple loans in a short period will plummet your credit score.
Is it more expensive to get a loan without a guarantor?
Yes, lenders charge higher rates to cover the risk of lending without the security of a guarantor. If you’re looking for one, compare options carefully to find the most affordable loan for your needs.
Is a no-guarantor loan better than a guarantor loan?
It depends. Choose a guarantor loan if you prefer better terms and interest rates and can get the support of a guarantor. You will have someone with a good credit history vouching for your ability to repay the loan, so you instantly become more reliable in the lender’s eyes.
Opt for a no-guarantor loan if you prefer not to involve a guarantor, and your credit rating supports this option. In this scenario, the lender evaluates your loan application by focusing entirely on your credit score, financial track record, and overall creditworthiness.
Why compare no guarantor loans through Moneyrepublic?
- 1Identify the no guarantor personal loans on benefits with the highest approval chances.
- 2Receive loan options tailored to your specific needs.
- 3Compare no guarantor loans without impacting your credit score.
FAQ
How can I improve my chances of getting a no-guarantor loan?
First, focus on improving your credit score. Verify the accuracy of your credit report and show consistent employment and residency. Next, compare lenders to find favourable terms that fit your finances. Finally, apply for a loan amount that aligns with your income.
Are non-guarantor loans secured or unsecured?
Non-guarantor loans are typically unsecured. This means they do not require collateral, such as your home or other assets, to secure them. Instead, they are based on your creditworthiness and ability to repay.
Can I repay my no-guarantor loan early?
Yes, lenders usually allow borrowers to settle their loans before the agreed-upon term ends, sometimes without any penalties. Before signing the agreement, check with your specific lender for their policies regarding early repayment to make sure there are no unexpected additional fees or conditions.
How much can I borrow without a guarantor?
Non-guarantor loans tend to range from £1,000 to £25,000 or more, depending on your financial situation and the lender’s criteria. Your income, credit history, and the lender’s assessment of your ability to repay will influence your borrowing limit.