How Loans with No Guarantor Should Be Your First Choice?

long term loans with no guarantor

Experienced borrowers know that it is comparatively very easy to get a loan in which a guarantor is involved. Moreover, the good credit history of the guarantor makes it easy for the direct lender to approve the loan because of the guaranteed security that the co-signer brings to the table during the loan deal.

In this article, we will try to understand that even though the approval is easy and almost guaranteed with a guarantor, them why do loan advisors strongly recommend opting for long-term loans with no guarantor as a better option.

Who can be a Guarantor or a Co-signer?

A guarantor is somebody who consents to pay whatever is due from the borrower’s end in case the lender does not receive the total principal amount along with the interest. Basically, the guarantor goes into an agreement with the lender consenting to assume liability for settling the total loan. This assurance opens him or her to a severe vulnerability.

When defaulted, the borrower receives notices from the lender but after a certain period, the notice is forwarded to the guarantor. In case he or she defaults on the payment, then the lender can take the legal route to take back his money. This not only affects the borrower’s credit score but it also devastates the credit score of the guarantor.

To avoid such circumstances, lenders ensure that the guarantor must:

be a minimum age of 18 and maximum of 75
have a good credit history
should have a collateral

The aforementioned criteria may vary from lender to lender but most of the direct lenders refrain from putting this information on their official channel. However, while signing the deal, it is the responsibility of both the agent as well as the recipients to know and understand all the terms and conditions involved in the loan deal.

What are the Benefits of No Guarantor Loans?

No guarantor loans are extremely prevalent among borrowers, especially in the UK. The application procedure in such loans takes less time since lenders just need to conduct a financial background check including the credit score and the alternative data check of just the borrower rather than that of the guarantor as well.

This makes getting a "yes" or "no" on your loan application a straightforward process. Such prompt response also enables you to rely upon No Guarantor Loans for urgent situations where you may want some money to repair your home or car, or invest in a short-term or long-term financial goal.

Having a bad credit certainly puts the borrower a few steps back in the deal as the loan approval then depends totally at the discretion of the concerned direct lender who most probably would be pressing high interest on the borrower.

How do Long-term Loans with No Guarantor Help Your Credit Score?

Guarantor loans, when mentioned in your credit history, do not make a good impact when considered by any lender. Even if you were leading the deal, the direct lenders usually assume that the guarantor would have been driving the wheel. Acquiring credit especially personal loans or long-term loans with no guarantor can help uplift your credit authority enabling you to apply for the loans you wish to apply in the future with the least possibility of loan rejection.

How Can I Find a Guaranteed Loan Lender in the UK?

Whether you are in any Britain, Wales or Northern Ireland, you can easily apply for no guarantor loans by contacting the concerned lender through a call, email, in some cases - text, and through their official website. Although there is a fair amount of risk involved in such transactions, following some basic background check on the internet itself or by personally contacting them, you can easily avoid and sort fraudulent individuals or organizations from the legitimate direct lenders.

Similar Articles

4 Tips to Save Money to Keep Debt Threat at Bay

Paying off debt is a mammoth task regardless of their terms. Even though you whittle down your expenses, you find it extremely difficult to reimburse all of your dues on time and eventually you end up with a painful circle of debts.

No guarantor loans

Borrowing has become a part of life these days. Of course, the reason behind this is, the cost of living goes high by each passing year. Living paycheque to paycheque seems the trickier task of the life.

No guarantor loans

Financial decisions are difficult to take. From savings to investment, you need to be on your toes, as nothing regretful should happen. There may be no second chance and then the loss becomes your destined destiny. However, with a cautious mind, it is also possible to get your desired results.

small business loans

Every entrepreneur wants ‘Growth’ as a fundamental thing from his or her business. The combination of intelligence, manpower, and funds predicts the growth in any business. Of course, the brilliant idea is the key to become a successful entrepreneur.

 Top 4 Ways to Manage Financial Crisis

Life and career have same nature. For both you make numberless plans but both are unpredictable and depend on situations around you. When you have a good career, the life seems happy, while a little jerk in your profession or career can bring turmoil in your life.

Guaranteed Loans

The budgeting is always a matter of worry for someone, who does not only dream of having a luxurious but also a satisfied financial life. However, not every person understands the importance of budgeting. And, this is the major reason why people often struggle due to the financial insecurities.

unemployed loans

The tag of an employed person gives us so much proud and relief. In fact, it guarantees a secured and settled life for us. We can complete the requirements of our family without any difficulty. By having a permanent job means a tension-free life but those people, who are particularly working in the private sector, can expect unemployment in any phase of their life. 

Unsecured Debt Consolidation Loans

The encounter with small but sudden, unexpected expenses is a frequent thing to happen in your life. Every time they come, you look to arrange funds in haste for them. This causes an imbalance in your finances and makes you compromise on other aspects.

unemployment

Working hard is the nature of every person, who wants to see his or her family financially satisfied. No one can even express how it feels to see the loved ones sleep easy at night. Of course, the hard work, sacrifices, tireless efforts and the stress you endure would make you eligible to complete the necessities of your dear ones