If you are struggling with poor credit score and need an additional loan, you should, first of all, understand the basics of bad credit borrowing. For, availing an additional loan with bad credit situation is not a choice but a necessity to beat the crunch and improve your credit health.
You may require a guarantor or collateral to back your loan application. With the addition of a high worth guarantor, your loan application becomes less risky and chances of availing a better rate of interest increase at the same time.
However, in the absence of a loan guarantor, a very high-interest rate is offered and not too many lenders would be willing to offer loans to the low worth borrowers. Herein it is thus important to use a professional help and learn how to avail a bad credit loan without a guarantor.
Know the loan options
Payday loans: Payday loans are emergency loans which are provided essentially as signature loans. The amount is directed to the bank account as soon as your loan is approved and identity is verified. The loan is sanctioned without a guarantor and without a credit check. However, the ease of swift payday loan comes at a very high cost and a tight deadline. You are required to repay the loan on your next salary day. Those who need urgent loans for a very short term apply for payday loans.
As the charges on late payment or refinancing of payday loan is very high you should opt for payday loans only when you have an assured arrangement to pay out the loan on time.
Doorstep loans: If paying back loan on a strict deadline is cause of concern, you can choose to apply for doorstep loans. These too are small cash loans, but repayment is collected from your home on a weekly or fortnightly basis. The doorstep loans are ideal for those who need bridge loans without a credit check or have some personal credit issues. Your past history doesn’t make you ineligible for doorstep loan.
Personal loans: When you need moderate amount of loan on instalments you should opt for personal loans. The loan can be raised for short term or long term according to your credit situation. Personal loans are unsecured loans which are signature loans. Your credit history and credit worth define the terms of personal loans.
A step by step process on how to avail no guarantor loans:
1. Know how much you want to borrow.
With bad credit situation, it is important to borrow only for the amount you compulsively need. You should not apply for more than what you need. Also clearly know how much you can spare for loan repayment every month.
2. Contact a loan broker
Contact an FCA regulated broker and he would search for an authorised lender according to your credit situation. A broker is an expert who can help you search for hassle-free cheap deals in the UK.
3. When you contact a loan broker, they search for the closest match loans without making any footprint in your credit report. They search the loans according to your loan repayment capability. You can choose the one without any obligation.
All in all, with an FCA regulated broker by your side, you could be rest assured of availing an affordable no guarantor loans, right from the comfort of your home.