No Guarantor Loan
If you have bad credit or no credit, getting a loan can be difficult unless you can find a loan company willing to take a risk on approving your application. Most financial institutions require that you can provide collateral for a loan and loan agencies emphasize the use of guarantor loans. A guarantor is someone who cosigns the loan application and offers security to the loan company by stating they will pay back your loan if you can’t. A no guarantor loan requires none of this. This can be helpful for people who either need a quick loan to get out of a bind or, who do not want to involve their friends or family in their financial difficulties.
Getting a no guarantor loan can be difficult because it represents a high risk to the company loaning. If you don’t have significant collateral to offer as security (such as a car or house), lending institutions are not going to look favourably on your application. If you do have collateral to offer, your chances become better although bear in mind that should you not be able to pay back the no guarantor loan according to the terms you agreed to, you will lose whatever it is you put up as collateral.
Some lending companies will consider approving a no guarantor loan if you can prove that you have a steady and reliable source of income, either through a salary or benefit. The amount of income you can prove must show that you can afford the payment terms without causing undue financial stress on meeting your other payment obligations such as rent, food and utilities. No guarantor loans typically also require that you have an existing bank account in good standing with a number of months proof by statement of a balance that would cover one or two payments of the loan.