Vague doubts about overspending become concrete when unexpected expenses caught you. Permanent financial stability does not exist in this world, which asks you to brace yourself for crisis. Direct lenders provide you with financial assistance in case you are running out of money. You just have to put in an application and you are all set to go, but it is not as easy as it seems.

Short-term loans are easy to avail as you do not need a guarantor, collateral and credit score, but lenders consider a base, which cinches their decision to sign off on your loan. You may have a myth that unsecured loans for bad credit with no guarantor cannot be rejected as lenders take no heed of credit reports, but they consider other factors that debilitate your application. If a lender casts aside your application, you should look at the following points.

You have asked for more

With a bad credit history, loan companies charge a high rate of interest and they always have a mind-set that you may make default anytime. Affiliated with FCA, lenders have to make sure that they lend you only what you can afford. To avoid risk investing money in you and keeping you from a painful debt web, they will look over your income statement to analyse the amount you are left with after meeting your other regular expenses. If your amount in the application is much more than your affordability, they will refuse to finance your needs.

Tip: Always estimate the total amount of required funds before applying for a loan.

You have already an existing 24 month loan

Not all financial institutions follow this approach, but a few deny disbursing you the loan if you have already taken 24 month loans for bad credit with no guarantor, which is yet to be reimbursed. In this situation, they will think that you want a new loan to repay other debts, which will throw you in a permanent debt spiral, and as a result, they refuse.

Tip: Make sure that you have repaid all of your existing dues or you can choose a lender whose loan agreement does not have this clause.

Your profile does not align with the lender’s policies

Every lender follows different policies, which means suitability for one lender is the cause of rejection for another. No matter how urgently you need funds, you should research properly before making a quote. Lenders lend funds to those who meet their standards as closely as possible. However, it is difficult to know the criteria, as they do not expose it to public.

Tip: To meet the unknown profile of the lender, control over your outgoings so that you have enough to pay.

You have made several loan applications

No credit is given if lenders find that you have filled barrages of loan applications. It is inferred as if you are in dire need of money that you have lost all of your savings. However, not all lenders turn down your application in this situation. They understand that you need funds for emergency and you might not have met a lender’s criteria yet.

Tip: There is no problem if you put in several requests, however, it is suggested that you should be a bit patient.


There are a few chances that lenders will rebuff your application if you have applied for unsecured personal loans with a bad credit and no guarantor. To make certain of the approval, follow aforementioned tips.