No guarantor loans are loans that do not require another individual with good credit rating, perhaps a friend or a family member, to guarantee or co-sign the loan repayment agreement.
These loans are the best scope of getting required funds for meeting financial emergencies especially for bad credit individuals who do not have the means of taking out loans from different lending organisations.
To Guarantee or Not to Guarantee?
This is the main question. Whether you are taking out a guarantor loan or a non-guarantor loan is completely dependent on the circumstances that you are facing. In case you have poor or bad credit which has been the cause of your rejection for loans, looking for a guarantor or a non-guarantor loan might be the right option for you.
However, if you have no problems in asking a friend or a family member to serve as a guarantor for your loan repayment agreement then a guarantor loan or 12-month loans would be the perfect choice for you. Here, it is important to note that if the guarantor of your loan has better credit scores than yours, it would help you in getting loans at better terms and better rates of interest. This is because you are at the low risk of not being able to pay back the loan amount every month.
Nevertheless, if you do not find it a good idea to ask somebody close to you for co-signing your loan repayment contract, you have the option of applying for a no guarantor loan and getting approved for the same. However, in this case it would be essential for you to take the services of a broker. Brokers have wide lender panels and are able to get their clients the best loans suited to their circumstances and requirements.
Is it Beneficial to Apply for a Loan without a Guarantor?
The lending organisations offering no guarantor loans clearly understand the fact that it might be very difficult for bad credit individuals to get loans from banks. Therefore, these organisations look beyond the credit scores of individuals if they are not good and take pride in helping out the ones struggling to avail the right loans in the market.
Prior to applying for any kind of credit or loan, it is very important for you to carry out a thorough research. Whether you need cash for consolidating debts, urgent car repair or for paying medical bills or for other planned expenses like home renovation or family holiday, it is necessary for you to take a considerable amount of time in understanding your financial condition fully and in asking yourself the following questions:
• What exactly should be the amount that I must borrow as a no guarantor loan?
• Do I genuinely need money?
• What is the amount that I can afford to pay back every month?
• What are the terms and conditions of the loan?
For any kind of help required in answering the above questions, try out the services of a broker for helping you in getting a clear idea of your financial situations and your affordability at the same time.