Problems have solutions and the bad credit have too. People, with the poor credit scores, struggle when they do not have enough savings and they need funds urgently. Standard rules and regulations of conventional lending organisations do not allow them to fill the application forms and get the approvals. They face many hardships and when it comes to the guarantor, bad credit score holders struggle one more time, as no one wants to take guarantee of the credit defaulters. On the other side, people with standard credit scores can easily get the loan approvals. No more stress for the low credit score, apply for loans for bad credit with no guarantor when you are in the financial emergency.
Differences between no guarantor and loans with guarantor:
You have to be the citizen of the UK and your age should be 18 or above in both cases. Apart from this, you should have an income status and not falling under the category of CCJ (County Court Judgement). There is a difference of presence of guarantor between both of the loan policies. In one, you need to present a person as guarantor and in other, you are compelled to present for getting the approval of the funds.
No guarantor loans keep the least obligations like no credit check and no need of a guarantor. These loans are generally provided to the people, who have low credit scores or no credit history. While the guaranteed loans need a guarantor and the standard credit scores.
Loans with no need of a guarantor are fast in approvals, as the obligations are least so the time is reduced and the overall online procedure also helps in making it speedy. On another side, guaranteed loans may take time than no guarantor loans, as the obligations are more so the time is consumed in fulfilling them.
4. Cost of the loan:
Loans with the absence of person working in good faith are expensive in comparison of guaranteed loans. The interest rates of loans without any co-signer are high as there is no security to the lender to protect its funds from the default. Interest rate is its only way to secure its loans. Contrary, loans with guarantor are lower in cost as there is reasonable interest chargeable. The loans are reasonable because these are secured with the people, known as the guarantors.
5. Risk of approval:
A loan which does not include any guarantor is more risky than the loan which involves the presence of person, who gives the guarantee. Loan with guarantee can be approved with an assurance while the approval on the previous one depends upon many factors.
These points differentiate each of the loan products. You should analyse them to make sure which kind of a loan product suits you the best.
How much can be borrowed?
Line of Credit
Line Of Credit is the limit of the borrowed amount which differs in both of the loan types. People, who are choosing the funding options without any guarantor, can borrow a small amount only. These are the short term loans, which do not provide larger amounts. In case of guaranteed loans, you can borrow more funds for a much larger financial purpose of your life.
At last, do not borrow the large amount unnecessarily otherwise, you can stick in the loan cycle, where you have to take one loan to pay another. Repaying the amount on time is your duty; do not forget that there will be negative impacts on your credit profile. One can improve his or her credit score with the help of loans with no need of the secondary borrower if you are on time with the repayments. You can ask the lender for the reasonable interest rates by telling your poor financial conditions.
All the best!