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Why do some lenders require a guarantor?

In the past, most direct lenders required you to have a guarantor when applying for a loan, making no guarantor loans very rare if you had a bad credit score. Furthermore, if you were able to find a lender willing to offer you a loan with no guarantor, the repayment terms were often so bad that the loans simply became an unrealistic option for many people.

A guarantor serves as an extra level of protection for lenders, and that is why some lenders are keen for you to have a guarantor when borrowing money. A guarantor also serves as a character reference for you; showing the lender that your guarantor deems you trustworthy enough to enter a loan agreement with. Because of this, loans that require a guarantor may offer better terms than loans that do not need a guarantor. However, this does not mean that loans not requiring a guarantor are still very expensive.

All of the lenders that we work with are authorised and regulated by The Financial Conduct Authority, you can be assured that loans not requiring you to have a guarantor will still be monitored to ensure they are fair and competitive. The FCA have also introduced a rate cap on all short term loans of 0.8% per day.

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Are no guarantor loans more expensive?

When looking for short term loans with no guarantor, it is understandable to wonder whether they are more expensive than other loans or not. Whilst some direct lenders may offer more favourable terms to people who can provide a guarantor, many lenders now realise that lots of people either do not have access to a suitable guarantor or simply do not wish to involve one. As such, more lenders are now offering loans that do not require a guarantor.

Add to this the fact that all loans regulated by the FCA are constantly monitored to ensure they remain competitive and within the rate cap of 0.8% interest per day, and this means that no guarantor loans are now a much more realistic option for many.

Available quickly and in a variety of formats, you can now get a competitive, short-term loan that does not require you to have a guarantor. Available exclusively online and featuring incredibly simple application processes, we can help you get access to funds the same day as you apply.

In addition, because short term loans are available in a wide variety of amounts; from the very small to those running into their thousands, you can use these loans for a much larger variety of reasons. This flexibility is increased when taking into account most lenders will let you decide how long you want to have to repay back the money you borrow.

How fast can I get a loan with no guarantor?

When you need a loan, it’s often required urgently. As such, fast loans requiring no guarantor are now offered by many direct lenders. As many of these lenders operate completely online, you can apply and be approved for a short term loan from the comfort of your own home. No more lengthy trips to a bank or worrying face-to-face interviews, lenders often approve loans without even having to speak to you over the telephone.

Loans that can be paid out the same day you apply are now much more common. Once you apply for a loan online, completing the application process and provided all the information needed, your loan will be processed incredibly quickly. So fast in fact, that many lenders will give you an instant decision as to whether you have been approved or not. This means you will know right away whether they are going to give you the money.

If you are approved, the money you need will be paid into your account in just 10 minutes* in many instances. Whilst this time may be extended slightly depending on your own bank’s processing procedures, it still means you will get the money very quickly.

Can I get a no guarantor loan with no credit check?

As a fully authorised and regulated credit broker, we do not offer ‘no guarantor loans’ with no credit check. This is because every lender is required by The Financial Conduct Authority to conduct a credit check on your application.

We understand that this is worrying for some, that is why we have only selected lenders that specialise in providing loans to people with less-than-perfect credit scores. Therefore, even whilst you will be subject to a check, these lenders will take a much more favourable view on your score. They do this because they know such scores can often not be a true reflection of your ability to borrow and repay the money you have borrowed.

As such, if you do have a poor credit score, you are still advised to apply for loans with these lenders as you now have a much greater chance of being approved. All of the direct lenders that we feature on our panel use soft search technology, this means that when we search the market for the best no guarantor loans for you, we will not harm your credit score in any way.

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Will a no guarantor loan damage my credit score?

If you have bad credit and are looking for no guarantor loans, you may be worried that your choice will be restricted. When this happens, it is easy to end up taking out a short term loan that is unsuitable for you in terms of the amount you borrow, how long the repayment plan is for, and of course the total amount you end up repaying.

When this happens, you can quickly run into trouble, such as missing repayments. As a result of this, your credit score will be damaged, making it even harder to borrow money in the future. It is therefore very important that you select a loan that meets your needs in terms of what you want to borrow and what you can afford to repay back each month. When this happens, and you successfully repay the money in the agreed period, your credit score will actually improve as it shows you are a good lender and therefore can be trusted for further such loans in the future.

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