A past credit mistake can restrict you to get loans from the standard lending institutions. It is because these loan providers cannot afford to take high risk to provide money to a credit defaulter even once in a life. It does not mean that you cannot get money from anywhere if you do not have the standard credit ratings. Many direct lenders or FinTech Companies provide loans in the UK even when the borrowers are the bad credit scorers. These lenders can afford the risk of lending you anytime even on the easy rules, like no mandatory presence of a guarantor, as it is difficult for a bad credit scorer to arrange a guarantor for the loan. The perfect example of it can be the guaranteed loans for bad credit with no guarantor in the financial emergency.
Guaranteed loans: Definition, Types and Benefits
You might have heard the term guaranteed loans many times. The approvals on the loans are fixed just after the borrower applies if the credit application meets all the requirements like good credit scores and the presence of a guarantor (most of the times). The loan application is the face of the borrower for a lender to know about and judge its financial status and capacity to repay the loan. However, the policy of one lender differs from one lender to another.
This is why a borrower must do research on the lender’s terms and conditions to successfully get the money, when he needs it.
Note: To confirm, whether your credit scores are meeting the requirements of the lender or not, use the credit checking agencies, whichever you prefer to know your credit scores. You can mention it on the loan application and then, the lender might not check your credit report, which will reduce the risk of more credit hits on the credit report.
As above discussed, there is a need of guarantor in most of the times when someone applies for the guaranteed loans. People with bad credit scores struggle a lot here and the credit check is one of the issues, which led the borrowers to lose more credit ratings from time to time when they apply for a loan and get rejection. This is why some direct lending companies offer guaranteed loans in various forms.
- Guaranteed loans for bad credit:
It is already discussed above that people with bad credit scores are allowed to apply for guaranteed loans to sort out their urgent financial needs. Not every lender provides such loans, so find out the suitable lender for the particular policy.
- Guaranteed loans with no guarantor:
A bad credit scorer always struggles to find a guarantor and when he needs the funds for urgent cases like pay off medical expense or any utility bill or rent, some online lenders can provide them guaranteed loans without the requirement of guarantor.
- No credit check loans with no guarantor:
A credit check is risky for a low credit scorer because with the rejection of the credit application, a more credit strike ruins the current credit ratings. This is why many online lenders provide no credit check loans with no guarantors. Other than credit defaulters, new borrowers can also take advantage of these loans as they do not have any credit history and they fail to arrange a guarantor due to many reasons like they recently shifted to the new place.
Are jobless people allowed to get loans?
Generally, the unemployed candidates are not allowed to avail loans from the mainstream lending institutions same as the credit defaulters. But a credit defaulter earning a good income might be given a chance to reconcile the financial records. Some online lending companies give chance to the unemployed candidates too in the emergency financial conditions by providing loans in the name of emergency money for unemployed.
Are no guarantor loans affordable or not?
Yes, these can be affordable if backed by any collateral like property or vehicle. In case, the person is not submitting the collateral then the interest on these loans are high due to the unsecured nature of these loans. These are short term loans, which can be allowed under both secured and unsecured category. Choose one of the categories as per your needs and situations.
The Bottom Line:
Never forget to do research on the lender to know its rules and regulations and the authentic nature. One more thing is that never fail to pay money on time and use automatic deduction option to improve the credit record.