Learn how you could benefit from a no guarantor loan.
What are the benefits of a No Guarantor loan?
Here’s why a No Guarantor loan could be the right option for you.
Looking for a loan? When it comes to choosing between a Guarantor or No Guarantor loan, it can be hard to know which option is best. To help you decide, we’re taking a good look at No Guarantor loans and how they could benefit you.
What is a No Guarantor loan?
To understand what a No Guarantor loan is, it helps to understand what a Guarantor loan is first. A Guarantor Loan requires a family member or friend to agree to repay the loan if you can’t pay back the money you borrowed in full. This can often help people with bad credit get accepted for a loan.
On the contrary, a No Guarantor loan doesn’t require anyone else to support your application or step in if you’re struggling with repayments. You’re the only person responsible for making sure the payments are met. A No Guarantor loan can come in different forms, including a personal or secured loan.
What are the benefits of a No Guarantor loan?
Asking a family member or friend to be a guarantor could sometimes add pressure to the relationship. It can be hard to ask a loved one to help with your finances, and a No Guarantor loan won’t require you to put your financial commitments on anyone else’s shoulders.
If you hit a bump in the road and think you may struggle to repay a No Guarantor loan, you won’t need to involve anyone else, avoiding any personal conflicts on top of your financial concerns.
What are the negatives of a No Guarantor loan?
If you have a less than perfect credit score, it’s not always easy to apply for a No Guarantor loan. It’s likely that some lenders may prefer a guarantor as a guarantor generally has a better credit score, so they help reassure lenders that the loan will be repaid on time.
However, this isn’t always the case. Some lenders specialise in offering No Guarantor loans to people with bad credit, so a rocky financial past doesn’t necessarily mean you’ll need the help of family or friends.
At Evolution Money, we don’t automatically turn people away due to their credit score. We aim to offer No Guarantor secured loans to suit your unique circumstances, whatever they may be.
What happens if I can’t repay a No Guarantor loan?
If you can’t repay a No Guarantor loan, no one else is legally obligated to make your repayments. It will be down to you to make sure every repayment is met on time, even if you’re married. On the other hand, if you decide to take out a joint loan, the other party is legally required to repay the loan if you can’t.
However, that’s not to say help isn’t available. Speaking to your lender if you can’t keep up with your repayments, and they could help you avoid any serious consequences. The sooner you contact your lender, the better.
Can I apply for a No Guarantor loan with bad credit?
It’s understandable if you don’t want to involve other people with your finances. At Evolution Money, we offer No Guarantor secured loans to people with bad credit, as secured homeowner loans, debt consolidation loans, holiday loans and more. Your financial past shouldn’t always get in the way of borrowing the money you need, and we’re here to help you look ahead.
As we offer secured loans, you might find it’s easier to apply with bad credit. The equity you have in your home can help you build a stronger application, even if you’ve made mistakes in the past.
Our friendly advisors will offer a personalised loan quote based on your circumstances. It means you can get on with building your credit score independently, without involving anyone else.
Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
