No Guarantor Loans.

Some people taking out a loan will be worried that needing a guarantor will slow down the process too much. If you take out a loan that requires a guarantor, it means your circumstances made the lender want to add a little extra security. A young person with no credit history might need a guarantor if it’s their first-ever credit.

The guarantor also gives the lender a second port of call should you default on your loan. Some people won’t want to discuss their financial predicament with anyone else, which is another reason they will want to avoid using a guarantor.

Whether or not you require a guarantor is more often because of your circumstances rather than the amount you’re borrowing. If you’re eligible for a no guarantor loan, then you probably still will be regardless of the amount. Most lenders that require a guarantor will still need a guarantor if you only borrow a small amount of money. Some direct lenders will never ask for a guarantor, regardless of your situation.

If you have a no guarantor loan, they will contact you to see why the payment hasn’t been made. If you foresee a problem with making a payment, you should always contact your direct lender at your earliest convenience. This shows them your intentions are good, and you do want to make your payments.

Contacting the lender will often allow you to avoid this situation, as you can resolve any issues together. It also demonstrates that you’re being honest, responsible, and have a genuine desire to pay.

Some people will want a no guarantor loan because they’re afraid a loan company will contact a guarantor if they miss a payment. Most lenders will usually only contact a guarantor as a last resort. They will nearly always try to contact you first, so if you don’t ignore them, they shouldn’t need to contact the guarantor.

Not all loan companies offer the option of a no guarantor loan. Our broker has lots of direct lenders on our panel that specialise in lending money to people with a variety of circumstances, from bad credit to first-time borrowers. Some won’t need a guarantor to complete the loan and will lend you the money unsecured. This is preferable to a more traditional lender, that will probably refuse you for the loan, guarantor or not.

Other factors usually dictate interest rates. A guarantor adds an extra element of security for the lender, which does reduce the risk the lender is taking, which can reduce the interest rate. However, the bulk of the interest rate will be decided by your circumstances and credit history. A lender is more likely to ask for a suitable guarantor if you’re classed as higher risk, as a guarantor with a good credit history can help to reduce the level of risk to within the acceptable parameters for that specific lender. However, other lenders may offer you a no guarantor loan.

Our brokers panel is full of direct lenders that specialise in providing loans to people with bad credit. Some of them will not require a guarantor, others will. They will show you the best loan offer available to you regardless of whether a guarantor is required. Our brokers panel of direct lenders maximises your chances of being approved for a loan, whatever your situation.

You can complete the whole application process online on your smartphone, tablet, or computer. Our brokers direct lenders understand the importance of providing access to money as quickly as possible. Therefore, they offer an instant decision and instantly compare the loans on offer to show you the best one, doing all the legwork for you automatically.

When you initially apply for a loan, lenders will only perform a soft credit search. This type of credit check leaves no mark on your credit record and will not be visible to lenders who look in the future. It provides them with enough information to check your eligibility against the criteria of our lenders. You will already know you meet the lender’s criteria before accepting a loan offer, but the lender will still need to perform a full credit check before they release any funds, as this is a requirement of the FCA (Financial Conduct Authority).

If you then continue to make all the agreed payments on time the loan, with or without a guarantor, will only improve your credit score, as it will show you have successfully taken out credit and paid it back as per the agreed repayments.