What you need to know about no guarantor loans

Usually traditional banks and lenders ask a loan applicant to provide a guarantor for the loan. This is especially so if the applicant has bad credit, he or she has to provide someone with good credit and a good stable income to guarantee the loan. In essence the guarantor agrees to pay the loan if the original borrower is unable to do so. This greatly reduces the risk of the lender and hence they are ready to give the loan. Even some of the modern specialist lenders ask for a guarantor if the applicant has a bad credit rating. However, if you apply for loans through loan brokers then it is possible to get no guarantor loans. This means that you can get a loan without a guarantor even if you have bad credit.
 

Why opt for a loan broker
 

Loan brokers usually protect you from loan sharks and other unscrupulous elements who are out there to fleece you. This is because they carefully vet the lenders with whom they form an association. They check whether the lenders follow the guidelines of the Financial Control Authority and are licensed to operate in the UK. AT the same time, they also ensure that the lenders do not charge a very high rate of interest, so that you can get affordable loans from them.

 

 

 It is also more likely for your loan to get approved if you approach a loan broker rather than approaching a lender directly. It is also possible to get special loans like loans for bad credit, loans for unemployed people on benefits and others. At the same time, the regular loans like personal loans, payday loans etc. are also available with them.

The best part about applying for a loan through a loan broker is that the entire process of application and approval is online and you do not have to leave the comfort of your home or office. There is no need for a face to face meeting with any representative of the lender as is the case with traditional lenders. Also the paper work is minimal and the process of approval is very fast. In fact, you can get approval for the loan in as less as half an hour, where the same procedure with a traditional lender might take days or even weeks. At the same time, the disbursal of the loan is also conducted within 10 minutes of the approval and all that from within the comfort of your home or office.

Can you get loans without credit check in the UK?

The answer to this question is no, because according to the guidelines of the FCA it is mandatory for a lender to conduct a credit check of the applicant before approving a loan. However, when lenders and loan brokers advertise no credit check loans no guarantor, what they actually mean is that the lenders in questions go soft on the credit check. At the same time, they take factors other than an applicant’s credit score into consideration when they approve a loan. When lenders provide such special loans they usually charge a higher rate of interest, but if you apply for the loan through a loan broker then it is possible to get loans at an affordable and reasonable rate of interest.