Individuals dislike being explicit about finances. A quarter of Britons are “silent savers.” It means they keep their financial matters private. It is because they don’t want to bother their loved ones with meagre cash needs.
However, troublesome situations like low income, minimal savings and high liabilities prove to be the biggest obstacle. It makes it impossible to counter urgent cash needs. In this case, one seeks someone who helps them get a loan. It is known as a guarantor. They act as a loan payment guarantee and enter the scenario when the borrower struggles to pay.
However, the long-term loan may strain relationships. In some cases, the guarantor discontinues being the security on the loan. It thus hampers financial progress. Moreover, most individuals lack someone to rely on for their finances.
Solutions like loans without a guarantor prove to be relieving here. It prevents you from sharing your financial situation with someone. Instead, you can handle the situation privately by taking a loan. Individuals with consistent income and a good credit score may qualify instantly.
What does a no guarantor loan imply?
A no-guarantor loan is a financial facility to get a loan without a third party or a guarantor. It grants the opportunity to conclude financial matters privately. Individuals with a good credit score, consistent employment and well-managed finances qualify. The interest rates on the loan remain competitive. It is because there is no guarantor involved in the loan.
However, one can fetch better interest rates by revealing affordability strength. High and regular income with fair credit helps get low interest rates. The repayments are fixed for the loan term (12 months). It means you can budget for the payments or set direct debits.
Is it possible to get a loan without a guarantor for bad credit?
You may qualify for a no-guarantor loan with bad credit. It is because you get a loan based on your current affordability rather than your past credit mistakes. However, these loans come with high interest charges. You get no guarantor loans for bad credit in the UK, according to affordability. If you can repay the dues without affecting the basic bills, you qualify.
One must use a loan calculator to understand the costs involved. It reveals the approximate charges that you need to pay. Additionally, compare and fetch the lowest interest rate loans. It helps you pay less interest and the overall amount.
How to borrow money fast without a guarantor?
You can get a loan without a guarantor if you prove your affordability with authentic documents. You should be fully conscious of the fact that you are solely responsible for the payments. Thus, taking accountability is important here. Here are some ways to get a loan without a guarantor:
Step 1- Determine your requirements
Step 2- Use a loan calculator
Step 3- Determine the eligibility
Step 4- Apply by mentioning details
Step 5- Pass the credit assessment
Step 6- Provide the documents required
Step 7- Provide your consent
Step 8- Get cash in the account
1) Determine your requirements
The first thing is to understand the amount you need for your purpose. You can get up to 10000 pounds on a loan without a guarantor (maximum). It is generally used for short-term and emergency needs. Just be conscious about your income, monthly expenses and amount needed. Don’t borrow unnecessarily.
2) Use a loan calculator
If confused regarding choosing an amount, check a loan calculator. It may help you choose the right amount that you can comfortably repay later. Additionally, pick a loan term that suits and aligns with your existing financial condition. It may not tell you the exact amounts, but the approximate ones. However, the actual amount may vary in the final loan agreement.
3) Determine the eligibility
Every loan provider has its own terms and eligibility criteria. However, the basics stay the same. You must check the eligibility conditions to understand whether the loan is right for your needs. Here are the general no-guarantor loan eligibility criteria that you may encounter:
- You should be 18 and over as a permanent UK citizen
- You should have a fixed income (part-time/full-time)
- You must own a relevant bank account with a direct debit facility
- You should have a permanent residential address
- Provide bank statements and accounts for the past 6 months
4) Apply by mentioning the correct details
You should be conscious while applying for a no guarantor loan. Identify the details that are required on the application form. You generally need to provide- name, email, contact number, amount requirement, loan purpose, and bank account number. Always check the details that you mention for spelling, characters, and numbers. You must provide correct information on the loan. A small mistake could lead to loan rejection.
5) Pass the credit assessment
After applying, you may receive a quick quote from the loan company. He conducts a basic and detailed credit assessment to understand your affordability. It may affect your credit score temporarily. Making regular payments on the loan may help reinstate your credit score. The credit check helps you understand the loan approval chances.
The loan provider checks credit score, income, monthly bills, and other expenses to understand affordability. Accordingly, he approves and provides the loan. You may not get the exact amount that you applied for. You get it according to what you can afford on the loan.
6) Provide the documents required
You must provide the documents, like-
Income-salary slip
bank statements
ID proof
Residential address proof.
It helps you and the loan provider determine the exact amount you can afford.
7) Provide your consent
You get a loan agreement shortly after providing the documents. Read through the details and the costs. Analyse broad parameters like – loan amount, monthly amount payable, repayment term, interest rates, total amount repayable and APR. It helps you understand your liabilities better. Look for additional costs like early repayment charges. Avoid pre-paying the loan in this case. Once you find the terms affordable, provide your consent via email.
8) Get the cash in your account
Once you agree to the terms, the loan provider releases funds shortly into the relevant bank account. You get the money the same day to meet your requirements. Check whether you got the exact promise for. If yes, you can use it to meet your needs. Later, repay the dues in small instalments to close the debt.
Bottom line
You may need a loan without a guarantor to build credit or meet needs individually. However, analysing the purpose it is used for, loan amount limits, and eligibility helps decide better. Ensure the best combination of a strong credit score and income. It helps you fetch better interest rates. Identify the additional costs and enquire if confused.
