Borrowing money in times of need has become one of the most popular ways of managing a financial shortfall. Keeping in mind the needs and requirements of a borrower, lenders have adopted advanced technology for creating a smooth borrowing journey and also, they ensure to maintain transparency in the entire process. As the name suggests, a no guarantor loan allows you to borrow a loan without any guarantor or co-signor. Not all the loans in the market are the same. Some lenders may need you to arrange for a guarantor while some of them may not. A financial emergency demands our instant monetary attention and there are times when we are not well-prepared for it. During such situations, people who have savings use their funds towards managing sudden expenses. While the savings may not be enough for a particular situation.
Most of us are living in a world where we do not find it pleasant and good to drag and involve someone close to us in the matters of our personal finance. Loans without Guarantor is one of the ways you can consider if you do not want someone else to vouch for you.
In this article, we will discuss:
- 3 major reasons that you should consider a no guarantor loan
- Things to be careful about
- How Loan Broker can help you?
3 Major Reasons to Consider a No Guarantor Loan
There are numerous reasons for which you should consider a no guarantor loan, and we’ve listed the top 3 reasons below:
In today’s world, everyone needs a product or service that is flexible enough to meet their demands. This financial tool is quite flexible as it allows you to borrow an amount from £100 to £1,000, without providing any guarantor. Also, the cost of repayments can be spread over several months (maximum 12 months). It becomes easy to handle the monthly repayments along with your outgoings. Before borrowing a loan, calculate the monthly repayment that you have to pay each month in advance. You can use free loan calculators available online for your calculation and then apply for it – only if you feel that you can afford all the repayments on time and in full.
Good for Emergencies
These loans are quite beneficial during emergencies. Because lenders have developed their systems to immediately cater to the needs of the borrowers. The decision of the lender is also instant as it only takes a few minutes for them to check your affordability and eligibility. If the lender finds everything on the mark and if you agree to every Terms & Conditions laid down by them, then they transfer the funds to your bank account within the same day. However, it varies from lender and lender and is also greatly dependent on who you bank with.
Whether you need to repair your faulty boiler or a leaky roof – the decision to spend the money lies with you. You can use it for a variety of reasons except for illegal activities such as gambling. Lenders also do not lend you money if you want to invest it in a new business or in the share market. As this is a short-term personal loan, you can use it for your personal uses only.
Things to be Careful About
Undoubtedly, this financial tool is a life-saver, however, there are a few things that you should keep in mind before filling out the loan application.
- Interest Rate: Every lender will offer you different rates of interest. Do not rush and choose the first offer as you may miss out on all other offers which may have a lower interest rate than the one that you’ve decided on. To ensure that you’re choosing the right loan offer, compare different loans from various lenders, and pick the one that has the lowest APR out of all the other options that you’ve received. You will find many brokers who allow you to compare loans for free.
- Repayment Behaviour: Never take out a loan only because you’re eligible for it. Determine your loan repayment capability according to your income and outgoings. If you fail to repay the lender according to your repayment agreement, your credit score will be ruined. A ruined or poor credit score will make your profile risky for other lenders when you may attempt to take out a loan in the future. Therefore, make sure that you repay the loan each month/week on time and in full to avoid any inconvenience.
- FCA Authorised: The Financial Conduct Authority (FCA) is the financial watchdog of the United Kingdom. Every lender or credit broker has to be registered with them to operate their business. Check the details of the lender or broker you’re about to deal with on the Financial Services Register to know their credibility. If they are not authorized by the FCA, then take a back step and do not indulge in any kind of business with them. It may be a scam and you may become a victim of this if you are not careful.
How Loan Broker can help you?
Loan Broker is a credit broker and not a lender. Loan brokers help you compare all of the loans that are available to you. Instead of applying on countless loan provider’s websites, you’re now able to see offers from a whole host of loan providers, all in one place. That makes the whole process easier and convenient.
Not only does this save you the time it takes to find all of these offers by yourself but a broker also saves you money. Many loan providers show loan brokers their best deals because they know they will be in direct competition with other loan providers for your business.
We’re registered by the FCA and we deal only with lenders who are authorized by the FCA to promote responsible lending. It all starts with your loan application with us. Provide us with the details we need – details like how much money you would like to borrow, how long you will need to pay off the loan, what your monthly expenses are, and whether you are insecure employment. After you’ve provided us with the information we need, we then submit your application to all of our lenders. Within a matter of minutes, we’ll have all of their offers back for you to look at and compare. By doing it this way, you can find the best deal on a loan that works for you. And the best part is that this service is completely free for you to use and you’re under no obligation to accept any of the loans that you are offered.