No Guarantor Loan – What Does It Mean?

A no guarantor loan is a loan that does not require you to arrange a person with a good credit standing to guarantee your loan. A few lenders do not sign off a loan when your credit file is not up to the mark, and if they do so, they ask you to arrange a guarantor who has a good credit rating.

Focus Loans understands that arranging a guarantor is difficult when you need money urgently, which is why we give priority to your financial circumstances. The size of the loan depends on individual circumstances. We try all possible efforts that you do not get money more than your affordability.

How Instantly Can I Get Loans Without Guarantor?

At the time of financial crisis, you need money as fast as possible. We know that it is a do or die situation. Therefore, our lending procedure is very simple and quick. You just need to follow these four steps to get funds in your account.

  • Fill out the application form.
  • Qualify pre-stage approval.
  • Submit your income statement.
  • Get funds
steps to get loan

Are Loans Without Guarantor Right For Me?

Whether loans without guarantor fit your needs or not depends on your circumstances. Before applying for any type of loan, it is paramount that you do enough research to get a better deal. Make sure that you choose a loan with a lower APR (Annual Percentage Rate). Ask yourself the following questions before you take out the loan:

  • Do I really need a loan or I can manage without it?
  • How much money shall I borrow?
  • How much can I afford to repay?
  • What will be the length of the loan?

We suggest that you should carefully look over your financial condition before applying for any loan so that you do not fall behind repayments. Here are the factors you should consider while finding a best lender.

  • Interest rates
  • Repayment term
  • Customer service
  • Reputation of the lender
  • Processing fees

Note that FL does not charge any upfront or hidden fees.

Are No Guarantor Loans Different from Loans for Bad Credit?

Since you can get no guarantor loans in case of bad credit history, you may address them as loans for bad credit with no guarantor, but both types of loans slightly differ from each other.

No Guarantor Loans Loans for Bad Credit
Maximum disbursal limit £5,000 £25,000
The length of the loan 12 months 36 months
Obligation Neither collateral nor guarantor You can if you wish to get lower interest rates

How Much Can I Borrow?

The disbursal limit of loans without guarantor is between £1,000 and £5,000. Please note that our focus is to support you financially not to trap you in a debt web. If we suspect your affordability, you are likely to get less than what you mentioned in your application form.

Can I Apply For No Guarantor Loans Without Credit Check?

No matter which type of loan you apply for, a lender will peruse your credit file to evaluate the default risk. Bad credit is not a snag, but there is likelihood that a few mainstream lenders turn you down if you have a very bad credit. Even if your credit report is abysmal, we can consider your request.

Other lenders run a hard credit check that leaves hard footprints on your credit report. Each inquiry pulls some points and lowers down your score. It reduces your chances of taking out a loan down the road.

If you apply for a loan with us, you do not need to get worried for losing your credit score as we run soft inquiries. Your credit score will not go down because they do not show up on your credit file. We will peruse income statement to know the default risk and repayment capacity.

Am I Eligible for No Guarantor Loans During Unemployment?

You must have a stable income source to take out money. It can be either a full-time job or self-employment, but it is likely that you are out of work when you need money urgently. This is why we provide no guarantor loans for unemployed. To have the loan approved, you must have the income from any of the following sources:

  • Unemployment benefits
  • Part-time job/ freelancing/ side gigs
  • Rental income

What Makes Us Stand Out?

After comparing us with other direct lenders, you will get a better idea, but you can get a brief idea by following points:

FL Mainstream Lenders
We run soft inquiries. Mainstream lenders use hard inquiries.
We focus on your affordability. Other direct lenders focus on profits.
We charge no upfront fees. The others are likely to charge processing fees.
We allow for repayments in instalments. The others accept lump sum payments.

Faqs

Can I apply for a loan without guarantor despite poor credit?

Yes, you can apply for a loan without guarantor even if you have a poor credit rating. You can get funds as long as you are able to prove your repayment capacity. Our policy works in favour of borrowers, which is why we offer these loans at affordable interest rates.

How Should I borrow funds without a guarantor?

First off, you should research to get a lender who offers lower interest rates. Once you have decided it, submit the application form online. The disbursal limit varies from lender to lender, so make sure that you are not borrowing more than they lend. Try to choose a lender who runs a soft credit check.

Can I avail a loan without a credit check?

Some lenders are ready to lend you no guarantor loans with no credit check, but beware of them. You are likely to fall in a predatory cycle of debt as they charge very high interest rates. We run a soft credit check that does not leave footprints on your report. This is why you do not need to be afraid of losing your credit score.

Which loan company is best for very bad credit loans?

If you are looking to apply for no guarantor loans at affordable interest rates, you must consider FL. Having a decent income source can help you quickly get funds. Further, our interest rates are competitive and we approve your application after analysing your affordability.

Do all the direct lenders deal in low priced guaranteed loan?

Not at all, each lender has its own lending policy regarding the interest rates and it is not necessary that if one is not offering your low priced funding that other will follow the same. You should consider multiple options before taking the final decision.