When a person needs a loan, he goes to the bank with paperwork and gets the approval easily. But is it so effortless to get a loan? Generally, any loan is given in two forms – loans with a guarantor and loans with no guarantor. If in any condition the person who got a loan in the first place isn’t able to repay it, the guarantor will be responsible for paying back the money to the lending company.
When the person asking for a loan has a bad credit score or low income, the bank may ask you to provide a guarantor in the loan to get approval. If you fail to do so, there are higher chances of you getting rejected. In a not so ideal world, if you are unable to get a guarantor for yourself who can co-sign for you, then it is not the end of the world.
What does it mean by loans with no guarantors?
It means that you do not need to find a person who will co-sign as a guarantor for your loan. A guarantor can be your parents, spouse, siblings with good credit score, and collateral. Sometimes you might not get a chance to get a loan without a guarantor if you do not have a good credit score. Still, it is no end to the world.
Seek help from Professional Lenders
If you have tried everything and get rejected by major banks, then you can try to seek help from a flexible lender who accepts application for loans without any guarantors readily. You should research about top financial companies that provide loans in such cases. Several companies offer personal loans or student loans to people without much hassle.
If you are left with no choice, you can also go for other options such as Peer to Peer Loans, Private Lenders, Short term loans on a salary which also helps you to improve your credit score or Loans with a higher interest rate from NBFC.
Loan Eligibility Criteria
When you are seeking loans from lenders, you might need to submit regular income proof, hold a bank account and a residence in the country. Getting a steady income proves to be a big help in such a situation. It gives an idea to the lender that you are in a condition to repay your loan without fail. Choose months for paying monthly instalment smartly as for loans without guarantor in the UK, you have the option to split your repayment months in 3 months, 6 months, or also a year for up to 1000 Pounds. The applicant must be above 18 years of age and have a minimum income of 500 pounds.
You can also consider seeking a loan for a smaller amount first to get faster approval in case you have no guarantor. It will help the company build trust in you with time and also help you in improving your credit score.
Avoid becoming a victim of Wrong Deals
There might be a chance that you come across with such deals where hidden fee is there without borrowers’ prior knowledge. Cross-check the company and their policies thoroughly before choosing to take a loan from anyone.
- No paperwork and only oral commitment is a big sign for a false deal
- There is no registered office address of the lender and manipulating you into not coming to the office.
- Instead of an official account of the company, you are sending the money into an individual personal account.
Improve your Credit Score
To get the opportunity for faster loan approval, consider improving your score. It will help you in getting unsecured personal loans as well. If you are looking for some ways to increase your score altogether, here are some simple tips that you can follow:
- Pay your monthly instalment timely and before the due date.
- Try not to spend over 50% of your credit limit.
- Don’t apply for multiple credit cards or loans in a short period.
- Keep track of your credit score and try to remove the errors.
In a challenging financial crisis, loans are a big help for everyone. But loan application approval is a big task and is more prone to rejection due to small mistakes. Some alternatives might help you in getting the funds for your need. Private Lenders, Peer to Peer loans, and big private financial companies come to the rescue in such situations without getting into the hassle of documentation, and good credit score.
Summary: Get an easy approval of loans with no guarantor to have stable cash flow, leading financial lenders, and low loan amount. Get hassle-free service from lenders without any questions asked.