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How to get a loan with no guarantor if you have bad credit

In the UK, you can get a loan without a guarantor, even with bad credit. It might be hard and expensive, but several lenders do offer no-guarantor loans specifically for people with poor credit scores.

These loans are usually unsecured, meaning you don't need to provide collateral or have a guarantor co-sign the loan agreement. You will usually only need to show that you’re employed and have a stable income.

However, this also means you’ll be at a higher risk for the lenders.

As a result, you may be offered higher interest rates and a lower loan amount. Make sure to figure out if you can afford the repayments before committing to one of these loans.

Regarding the process, you can usually apply for a no-guarantor loan online straight on the lender’s website. The application is typically straightforward and can be done within a few minutes. Lenders will then run a soft credit check to see if you’re eligible.

This can give you an idea of your approval chances without affecting your credit score.

What are the requirements for getting a no-guarantor loan with bad credit?

To get a no-guarantor loan with bad credit in the UK, you usually need to meet the following requirements:

  • Be at least 18 years old.
  • Be a UK resident: if you’re new to the UK, you might need at least a year of continuous address history; three is better.
  • Have a regular income and stable employment. You might need three years' worth of tax returns if you're self-employed.

Some key things to keep in mind when applying for a bad credit loan without a guarantor:

  • Lenders may run a "soft search" first to check your eligibility without impacting your credit score.
  • Although having bad credit may mean higher interest rates and lower loan amounts, it is still possible to get approved for a loan without a guarantor to back your application.
  • Make sure to gather as much data as you can about your income and expenses. Having a side gig, for example, matters.
  • Don’t rush to sign the loan documents without reviewing the loan terms, interest rates, and fees. They’re often higher than they seem. APR, for example, includes most fees that a loan charges, which is why you’ll see APRs are higher than interest rates alone.
  • Most importantly, make sure you can comfortably afford the repayments. Otherwise, you’ll damage your credit score even more.

What is the lowest APR I can usually get for a bad credit loan with no guarantor?

The lowest APR you can usually get for a bad credit loan without a guarantor in the UK varies depending on the lender and your individual situation.

While some lenders offer rates as low as 19.9% APR for bad credit loans if you bring a guarantor, the interest rate for a similar loan without a guarantor could be around 70% or even higher.

This is not surprising.

APR percentages for loans without a guarantor tend to be higher because you’re a bigger risk for the lender. But you should also remember that APRs vary quite a bit, so compare quotes from different lenders to find the best one.

I have an emergency. If I apply for one of these bad credit, no-guarantor loans, how fast can I get the cash?

If you have an emergency and need cash quickly, you may be able to get a bad credit loan without a guarantor on the next business day or even the same business day.

Some things you need to be mindful of if you need money quickly:

  • Some lenders sometimes advertise same-day payouts, with the money deposited into your account within an hour of approval. However, some lenders are faster than others.
  • Applying in the morning increases your chances of getting the cash the same day.
  • To expedite the application, make sure to have all the documents upfront, such as proof of income and bank details.
  • Lenders will still need to run credit and affordability checks. Still, they may be able to at least provide an instant decision.

One more thing: even if you’re in a rush, please review the loan terms carefully so you can make sure that you can afford the repayments and the interest rate charges.

How can I get better terms for a personal loan?

To get better terms if you have bad credit and can’t bring a guarantor, you only have a few options:

  • Shop around and compare offers from different lenders to find the best terms. Look for lenders specialising in bad credit loans and offering reasonable interest rates and repayment terms.
  • Consider getting a secured loan. For example, putting a vehicle as security can mean lower APR rates compared to unsecured loans. Secured loans may take longer to approve but can offer better terms.
  • And, of course, take steps to improve your credit score. This is by far the best thing you can do. Not only will it help you get loans without a guarantor or security, but it will also give you many more options and much lower interest rates.

One way to improve your score is to download a credit-building app like Wollit.

Wollit reports your fixed-fee monthly subscription as a loan repayment to credit reference agencies (Experian, Equifax, and TransUnion).

This helps you improve your credit history by showing that you can pay debt on time, one of the main factors influencing your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills on time.

Eventually, this will help you get the loans you want on the terms you wish to, guarantor or no guarantor.

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