When you need a loan, you want things to be the least complicated. It may involve seeking a loan with no credit check or a guarantor requirement. However, the ease of the loan approval depends on your finances and affordability.
It is the reason the loan providers run some basic checks. It helps them understand whether you can repay the dues timely. Therefore, getting a loan without a credit check is impossible in the country.
It is especially true when you seek one from a responsible loan provider. However, does this credit check reduce your loan approval chances? Is it mandatory to provide a guarantor to qualify? The blog answers your question- Can you get a loan without a credit or a guarantor?
Why basic credit checks are necessary?
Credit checks are the part of the loan process. It helps the creditor analyse the amount you can afford to repay comfortably. Alternatively, it assists them in understanding whether the person meets the basic loan eligibility criteria. Here is what a loan may look like with and without a credit check:
| Getting a loan with a credit check | Getting a loan without a credit check |
| Helps you get the right loan that you can repay comfortably | You may borrow an unrealistic amount that you may struggle to repay later |
| The experts provide a loan quote that aligns with the budget | The random quote may not align with your budget or income |
| Prevents you from situations like- unemployment, low income, or uncertain finances | Your credit and finances may drop further under uncertain circumstances. It may lead to bankruptcy. |
So, what would you prefer?
The loan provider conducts a check after you apply for a loan online. The creditor analyses basic aspects or information like- income, contact number, employment history, residential history, and citizenship.
Individuals with updated information get the preference. It makes it easier for the loan provider to track the person in case of missed payments or defaults. Therefore, always choose a creditor that conducts basic checks. It helps you understand the amount you can fairly afford, eligibility criteria and requirements.
How does a loan without a credit check help you?
It is generally ideal to seek a loan from a company that conducts basic credit checks. Here is how you may benefit from a basic or soft credit check process:
- No need to provide a guarantor
Loans without credit checks are usually ideal for emergencies and small uses. It does not require detailed documentation or even a guarantor. Instead, the loan approval solely depends on your basic affordability. If you can manage the loan payments without missing any, you qualify. Precisely, you may get loans with no credit check and no guarantor if you earn well. Your monthly income should be high enough to support loan payments apart from basic needs.
2. Get quotes without affecting your credit score
You may get pre-evaluation quotes from different loan providers. The initial application does not affect your credit history. However, don’t make several applications. Filter one by analysing the expected APR, interest, and other costs. Accordingly, it becomes easier to choose the one from different credit assessments. Go with the one that meets your expectations and budget.
3. Help meet the needs on the same day
You don’t need to wait for a week to get the cash. Instead, you get one the very day in your bank account. It prevents you from missing an urgent cash need or leading to panic-ridden circumstances. It also eliminates the fear that arises from not getting help from known ones when you need it the most.
Which loans can you get with no credit check and guarantor?
Yes, certain loans do not require detailed paperwork, credit assessment or even a guarantor. These are generally short-term loans suitable for quick needs. However, the purpose defines the right one to use. Here are some loans that you may get without a detailed credit check and guarantor:
a) Text loans
These are small loans of up to £1000 that you may get on a text. Yes, you don’t need a good internet connection for text loans. However, you must be able to provide earning proof.
b) Payday loans
A payday loan is an income-based loan. Individuals with decent employment history without earning gaps get preference. However, the unemployed may also qualify for a part-time income. It does not mandate a guarantor.
c) Short-term loans
As the name describes, a short-term loan is a facility that helps you counter emergencies. You may use it for bill payments, car repairs, examination forms, or funeral expenses. The amount stays low but is more affordable than a payday loan. You don’t need a stellar credit to qualify.
How to get a no guarantor loan at bad credit as a seasonal worker?
It is generally hard to get a loan without a guarantor as a part-time worker. It is because the loan provider lacks sufficient proof of your repayment capability. Moreover, poor credit history overshadows your potential to qualify.
Regular employees get more preference over part-time workers. However, you may get a no-guarantor loan at bad credit as a seasonal worker by:
1. Repaying some debts
Analyse the costly debts and draft a payment plan. Clear these one by one to optimise your credit history. If you struggle with that, consider a debt consolidation loan. It helps you merge and repay different debts with a single payment. It is the quickest way to improve your loan affordability potential and credit score.
You can even consolidate debts with bad credit loans in the UK from a direct lender nearby. It is when you do not qualify for a specific debt consolidation loan due to a poor profile. Bad credit loans provide flexibility and the rates stay a little more competitive than a specific debt consolidation loan.
2. Host valid income sources
It is important to have a verified part-time income source to qualify. Moreover, the amount you need must be less than the part-time income and monthly expenses. Provide only verifiable earning resources as income proof. Try to find another part-time or full-time income before searching for a loan.
3. Check-collateral-based loans
It is ideal for individuals needing an amount over £10000 with a bad credit history and without a guarantor. Check whether you can tap any personal assets like- property, vehicle, intellectual property, jewellery, etc., to get the loan. It is only ideal if you have valid assets whose value is higher than the amount you need. Under this, you may get a higher amount despite bad credit without any guarantor requirements.
Bottom line
Getting a loan without a credit check is not possible with a responsible provider. However, the loan provider conducts a basic soft check initially that does not affect the credit score. It helps you tap only the amount that you can repay comfortably. However, you may not need to provide a guarantor always. It becomes mandatory when your current finances fall insufficient to repay the dues.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
