What is a No Guarantor Loan?

As the name implies a no-guarantor loan is a debt that you can have even if there is no one to co-sign your loan. If you just searched for “no guarantor loan” on Google, you are probably wrestling with an emergency situation but do not have the resources to tackle it. You’re not able to borrow money from friends and relatives, and you’ve had no luck with the banks because of bad credit.

With no-guarantor loans, you can have the money that you need without risking someone else’s credit standing. If you search for it online, you will see that there are many lenders out there who are more than willing to overlook your low credit score as long as you don’t belong to the very bottom of the credit score scale. The question is: Should you get a loan?

Please Note – You must fully understand the answer to the question, why do some lenders insist that borrowers need a guarantor?

Remember That These Loans May Be Expensive

Well, that really depends on whether or not you have no other choice. Make no mistake about it, personal loans of this kind are NOT cheap. They are very, very expensive and interest rates are applied daily.

The lenders will not tell you this, but the APR or Annual Percentage Rate of most lenders run up to over 400%. If that’s not usurious, we don’t know what is.

However, you will find lenders that offer lower interest rates than others and do not charge any fees. And this is where you can save money.

Compare All Interest Rates

So, if you really need to get a loan, the first thing you need to do is to compare the interest rates and terms and conditions of at least three different lenders. No, you do not need to get a quote individually from each lender. There are finance brokers out there that allow you to send a loan application one time and that application is going to send to different lenders.

  Is The Loan Process Fast?

How long does the process take to complete? You’d be glad to know that the process takes around 24 hours or less to complete depending on the loan amount. Loans in the area of 10,000 British pounds generally take longer. When your application is sent to the different lenders, it will be approved in principle by the different lenders.

What Are Your Responsibilities?

You as the borrower, it is your responsibility to compare and contrast the different loan products being offered to you. Compare the interest rates, terms and conditions, and the fees.

Check out the following video for a little background information on how APRs may be worked out.