Whilst no one can absolutely and completely 100% guarantee that they can get you a loan, they do have a good track record.
Need a Loan Without Guarantor?
However, you will still need to pass the lender’s criteria to get your loan.
If you know that you have a lot of bad credit in your recent history, you might be better considering a guarantor loan if you know someone that might be suitable to go as a guarantor.
You will get details of the different types of guarantor loans by clicking to get to the relevant page.
Loans with poor credit score
Those that do have a bad credit rating, however, are advised to apply for loans with a guarantor to have a higher chance of being accepted.
There are many reasons why you may have found yourself having bad credit.
By not keeping up to date with your other financial commitments can have a detrimental effect on your credit rating.
This is why we would suggest only those with good credit scores apply for a loan not having a guarantor and those with bad credit should apply for loans with a guarantor.
When applying for any kind of finance or credit the lender will look at an individual’s credit score to decide whether they will accept or decline the application.
If you have checked your credit rating or you have a history of late payments or County Court Judgments (CCJ’s) etc. it is likely you will be declined for a standard loan.
Lenders for loans without guarantor
So by applying for a loan without using a guarantor the lender has less chance of getting their money back as it is too much of a risk with a history of poor money management.
So by not considering loan without guarantor and instead applying for guarantor loans it is giving the lender some kind of security of getting the money back should you be unable to do so yourself.
But if you need someone to go Guarantor?
Guarantor loans are similar to personal loans but it requires a family member or close friend to be a guarantor for the loan.
This means if you fall behind on the payments it is up to them, the guarantor, to pay it back.
Ideally, the lender would like the guarantor that is named to have a good credit score and ideally have equity of some sort, like a house or car.
However, the lender will still make sure you yourself are in a position to make the repayments as agreed.
A good way of using a guarantor loan is to help build a good credit rating by staying below your credit limit and ensure you pay the agreed amount on time.
A bad idea, however, is borrowing more than you know you are able to pay back and getting yourself into more bother financially, but also the person that has put their name down as a guarantor.
So when you have bad credit, a loan without guarantor is not your best option, a guarantor loan is your best option to get your hands on the cash you need.
See also Loans Anyone Can Get.