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Explore convenient no-guarantor loans with LoanTube.
What are no guarantor loans?
The guarantor of your loan is a close friend or family member who assumes the loan’s repayment responsibility with you. Guaranteed loans are a good solution for those with below-average credit histories. To reduce the risk of loss, lenders ask the borrower to co-sign the loan agreement with a guarantor.
Now, if you fail to repay, the lender will hold your guarantor accountable for repayments. The lender may recoup their loss by selling your guarantor’s assets. Most loans are loans without a guarantor. Personal loans, secured loans, home improvement loans, short-term loans, or title loans, per se, won’t usually require you to present a guarantor.
However, not everyone can get guarantors to co-sign their loans. In some cases, you might choose not to involve a third person. No-guarantor loans are ideal in these cases. Fundamentally, a no-guarantor loan is a personal loan. You are neither required to provide collateral nor a guarantor to secure the loan. Your credit score will also determine the offers you receive on a no-guarantor loan.
If you’ve exhibited responsible credit behaviour in the past, you will most likely get manageable loan offers. It’s difficult to find a lender who offers a decent interest rate if you have a poor credit history. Even if you do find one, the terms associated with the loan can be unreasonable. The interest rates for such loans are higher than most forms of credit, such as a personal loan. With such exorbitant rates, you may end up repaying more in interest.
What are the eligibility criteria for a no-guarantor loan?
A no guarantor loan has some basic eligibility requirements. You will likely qualify for one if you meet the prerequisites. Lenders typically look at:
Provide accurate information about yourself to the lender. Before approving your loan, lenders will always perform a credit check. A CCJ on your record and a past default might make it difficult for you to secure credit. In addition, multiple credit checks can lower your credit score, regardless of whether the lender approves the loan or not. A good practice is to estimate your eligibility before applying for a loan.
Why might I consider a no-guarantor loan?
It can be stressful for a guarantor to partake in a guarantor loan. Thus, there cannot be just one reason for not wanting a guarantor. You may not be able to share your financial problems with anyone in your social circle. When you find someone, they may be reluctant to share their information or have stellar credit.
Assess why you’re taking out a loan in the first place. Do you need a loan to consolidate your debt? Are you planning to improve your home with a personal loan? Another loan, however, will only add to your debt pile if you already have problems with debt. Get professional assistance to deal with your debts. Trying to cope by denial will only make things worse in this case.
Is it wise to apply without a guarantor?
Choosing a loan without a guarantor requires thoroughly evaluating whether it is suitable for you. Assess all the options available to you, and then check your eligibility for each. If you think a no guarantor loan is an ideal option and you happen to satisfy the criteria, go ahead and apply for one.
Don’t borrow more than you can afford to repay.
Timely repayments are essential for any form of credit. Not only will a default deteriorate your credit score, but you may also end up getting a CCJ.
What are the pros and cons of personal loans without a guarantor?
Borrowing without a guarantor may help you maintain your financial balance. Before applying for a no guarantor loan, you should consider the following pros and cons:
What to consider before borrowing a loan without a guarantor?
Consider the following when planning to borrow a no-guarantor loan:
Make some calculations to determine how much you can borrow without a guarantor. Ensure that you only borrow an amount that you will eventually repay.
Will I be able to commit to the loan term? Long-term loans require a lot of commitment and discipline. The monthly payments of a long-term loan may be lower, but you will pay a higher interest rate. Make sure the loan term fits your financial situation now and in the future.
A missed payment can lower your credit score by up to 150 points. The loan’s default will result in 350 credit points and a County Court Judgment (CCJ). For up to six years, CCJs impact your credit file, making it more difficult to secure credit in the future.
A contingency plan is pivotal in ensuring timely payments, regardless of your financial circumstances. Make an informed decision before borrowing a no-guarantor loan.
No guarantor loans can be a good way to finance various expenses. Here’s what you might use it for:
Guarantor loans are a popular choice for borrowers who believe their own credit score is not high enough to qualify for a personal loan.
You can get finance through guarantor loans when you might not otherwise be able to. If you don’t already have one, paying off a guarantor loan in full and on time will help you boost your credit score and establish your credit history.
No guarantor loans offer the same opportunity to access money as guarantor loans if no one is willing or able to act as your guarantor.
You can borrow up to £35,000 over 12-84 months with LoanTube.
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Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK
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Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.