The world is full of advantages when we look at it in the right places. Things that we still get can give us many perks that we might ignore or miss out on. With that being said, we can say that we might cultivate values out of things which we otherwise think to be pretty common and boring.
When suffering from money worries, we often turn to lenders. And if you have chosen a direct lender, then chances are you are looking for a personal loan. And if you are looking for a personal loan, then chances are you can take out (or consider) loans without a guarantor.
In most cases, you might think that no guarantor loans are particularly those loans coming with many conditional matters. You might also want to find out why these loans construct a huge part in the lending field. To know all of this, we might need to consider defining this loan and going through its advantages.
- What Is a No Guarantor Loan?
Sit back and relax. You are about to be impressed with the qualities and information of no guarantor loans.
A loan of this kind is a personal loan as it is clear to understand that no guarantor loans are as same as unsecured loans, which do not have collateral regulations. If you decide to take one out, firstly, you do not have to include an asset as collateral; secondly, you can take it out without the hassles of a guarantor.
- Is It Difficult to Manage a No Guarantor Loan?
This factor can again be a misconception for many. You need to understand that a no-guarantor loan you are looking ahead is a loan that excludes guarantor obligations. It does not have extra fees or super-high interest rates, which can disturb your financial life. If you choose direct lenders like us to take this loan out, then the repayment process will be as easy as ABC.
Let us tell you what conditions count for taking out a no-guarantor loan. We can say that a no-guarantor loan is majorly a short-term personal loan, which works as same as a personal loan itself. You can get money without bringing in a guarantor along with you if you share your income details with us and if we find your income details to qualify for the debt-to-income ratio. We want to know if you can repay the loan on your income. If your income helps you make the instalments set for the repayment, then we do not have a problem offering you the money.
You do need to share with us valid documents of your income. Your salary or the amount of money you earn must be mentioned in the details you share. They must be current, and they should also contain your employer’s name and address. Along with that, do send us the fresh credit score and report.
- Who or What Is a Guarantor?
A guarantor is the person or organisation who will be responsible for repaying the money to the lender if you (the primary borrower) face hurdles to repay the money in full, and that too at the right time. Therefore, the guarantor is the authority who will owe lenders the money/ remaining amount of the payment.
- Why Is a No Guarantor Loan a Valuable Financial Product?
The previous point might convince you that a guarantor can have your back, right? Although it looks like that, a guarantor can complicate and complicate the lending process. Not offending the guarantors and not minimising the guarantor loans, here are a few reasons you might consider a no-guarantor loan more valuable:
- It Can Offer You Fast Money
If you need a loan in times of emergency, then the best option for you is a personal loan without a guarantor. Due to not involving the person or institution as a guarantor, you do not have to worry about an extensive and more time-consuming loan verification. It can get you your loan faster. It can be the perfect solution for an emergency situation.
- You Can Get a Loan in Bad Credit
What if you have a good credit score, but your guarantor does not? The situation can get even more complex if both of you have bad or poor credit scores. Choosing loans without a guarantor for bad credit is going to be a smart move in this regard. This loan is dependent on your income statement only. So, even with a bad credit score, you can still get a loan. As a bonus, you can make the deal free of a guarantor.
- The Deal Can Be a Hassle-Free Deal for You
Who wants to find complicated paperwork and bills lying on the desk? Although a guarantor loan does come with its benefits, it also makes the deal more complex and cluttered. Keeping the guarantor out of the picture can help you retain a good relationship with the guarantor and also professional conciseness with your direct lender.
- You Can Get a Variety of Short-Term Loans
Since no guarantor loans are basically personal loans for short-term funding, you can quickly get a loan of the type you want. For example, you might suffer from a poor credit score, and you are looking up loans for people with bad credit online because you know you can pay the money back with the help of your income. If you choose a no-guarantor loan and a direct lender, you can get a payday loan. You can repay a payday loan with the money you get on your next payday. Or else, you can choose a short-term loan, such as a 12-month loan, to distribute the repayment amounts evenly.
- To Conclude
When you are done thinking of the no-guarantor loans, do take some time to understand the loan affordability. A good idea to find it out yourself is to use a loan calculator. Although we, as direct lenders, are going to run a check ourselves, you can go through the same process to understand your borrowing capacity. It will help us both come to a conclusion about a loan faster.
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.
