When you end up getting stuck in a financial mess, it is never so easy to overcome this crisis. In the situation of a financial emergency, you will always have to survive a tough time, if your credit record is not up to the mark. How are you then going to overcome this situation?

As it is clear that getting the fund in the form of a loan is quite difficult. Additionally, your financial condition is such that arranging a guarantor is very unlikely to happen. In order to get a fund at a short notice and that too without facing any obstacles, you can apply for loans for bad credit with no guarantor.

Importance of Your Credit History

The most important question in a borrower’s mind is what the worth of their credit score is.

That’s the right question indeed to come up in your mind while thinking about a loan.

And the answer to your question is- Yes, your credit history plays some role in getting a loan. But the thing is that your credit score is not as important to a lender as you think.

Most people in the UK have an imperfect credit record. And many people suffer in their lives when the money coming into their house is not sufficient enough to meet all their requirements. Although these are a rare and temporary phase of one’s life an adverse credit record can become an obstacle in overcoming your financial crisis.

The best thing is that your credit report is only one factor a lender considers- the other factor is your current financial circumstances.  

Why Would Any Lender Will Offer You a Loan Despite Bad Credit Record?

That’s a wonderful question actually. The answer is that some lenders designed a loan product to help borrowers with a poor credit score. They lend to people with low credit score and that too without any guarantor.

There are many direct lenders who are involved in this business. They understand the need for such type of borrowers and so have introduced this type of loan options without putting the company at risk.

Guarantor Vs No Guarantor Loan

In a guarantor loan, you need to bring someone like your friends or family members to be the guarantor of your loan agreement. The only purpose of this is in case you fail to make the payment of loan then the lender can their money from the guarantor. This is just for the security of the lender.

Nowadays, it is very difficult to convince someone to become your guarantor. And when you are in an emergency situation then obviously you would not like to spend much time searching for a guarantor. In this situation, a no guarantor comes handy.

Benefits of No Guarantor Loans

• This type of loan is ideal for any emergency purpose like unexpected medical expenses, car repair bill, utility bills, etc. It can be availed by small and large amount both- work out what you need.

• It can be availed on a quick decision. All the processes are done online. You just need to fill an online loan application and you will get the instant decision about your approval.

• Easy repayment option is one of the main features of this type of loan. Lenders provide very flexible and easy repayment options to the borrowers.

• No hassle of looking for a guarantor. You don’t have to convince anyone to become the guarantor of your loan. This will save your important time which generally any borrower spends in arranging a guarantor.

• No security or collateral involved. To get this type of loan you don’t have to provide any collateral like your house, car, etc. Basically, these are an unsecured type of loan without any security or collateral.

• The only drawback of this type of loan is a comparatively high rate of interest compared to other categories of loans. Since lenders are taking a risk by providing you the loan without any guarantor hence they tend to keep a high rate of interest to compensate their loss in case of non-repayment.

Hence, when an emergency arises and you need money as early as possible but unable to get one due to bad credit then in this situation loans for bad credit with no guarantor can be a suitable option for you. With the online application process, it is very fast and quick to get a loan. Just keep in mind to pay the loan on time to avoid further deterioration of your credit score.

Description: People with a bad credit score are more neglected by the lenders these days because of their past mistakes in repayment of a loan. But there are many online lenders who are willing to help such type of borrowers.