What Loan Options Can One Qualify for On Bad Credit and No Guarantor
Harry June 7, 2022

Are you facing a stiff budget and need emergency cash on a bad credit score?

With the UK’s economy taking serious financial turns, it leads to increased confusion and income issues. You are not alone.

In this crucial phase, dreams cannot rest. Sometimes, the things you like are complicated to buy in a single go. If you cannot do so, what might be your option? With the help of someone you rely upon, you can buy the thing. What if you never find that person?

The person talked about here is called – “Guarantor”. A guarantor is a close relative of a borrower and agrees to offer his good credit score to assist the borrower qualify the loan. He is also responsible for making loan repayments if the borrower defaults. A guarantor can walk out of the agreement owing to mutual trouble or complicated finances.

 Having a guarantor over the loan help reduce stress, fear and chances of defaulting.

What if you never find one because of credit issues? Is it a full stop to your dreams?


Thankfully, lenders provide loans for bad credit and no guarantor to help individuals achieve their goals without any restrictions and regrets.

What Does a No Guarantor Loan Imply?

Loans with no guarantor do not require a third person to qualify. The lender agrees with the lender and vows to pay the loan by the term’s end. In case of bad credit and no guarantor, the lender provides loans at high-interest rates to the borrower. The reason is that the lender shares the risk of losing money in case the borrower cannot repay the loan.

When to use a Loan without a guarantor?

A loan without a guarantor could be used for urgent purposes like:

  • Plumbing issues
  • Electricity issues
  • Fixing a boiler
  • Paying a tuition fee
  • Paying for subscriptions
  • Attending small medical emergencies like- dressing

How Can One with Bad Credit Qualify for No Guarantor Loans?

Lacking good credit does not automatically eliminate a seeker from fetching the loans. In this situation, lenders consider other aspects and parameters than a credit score to provide the loans. They factor in multiple aspects under bad credit no guarantor loan affordability check. These are:

a) Employment status

Lenders while providing loans, analyse how long you have been working and the year’s dedicated current employer.

b) Income status

It is one of the major parameters that decide the loan approval thing. If you have been working for a long and receive payments consistently, you may qualify for a loan for bad credit and no guarantor. Individuals working in some prestigious posts and professions share more probability of getting the loan approval.

c) Spendings/ Outgoings

Time-critical loans have higher APRs and interest rates. They are short-term loans, such as payday loans. These loans have strict rules. If your monthly expenses and liabilities, like other debts, exceed your income. It may impact the loan confirmation or approval.

What Loans Can You Apply for Without a Guarantor on Bad Credit?

Loans for bad credit and no guarantor are fairly popular in the UK. Firstly, these are easy-to-accessible loans, and secondly, you do not require a sound credit profile to qualify for the loan. These loans have high acceptance rates. Once you apply for these loans, you may get immediately accepted. The funds are disbursed in the account the same day.

However, there are limitations to individuals applying for loans on bad credit through high-street lenders. Some offer the greatest relief by providing loans to individuals with bad credit and no guarantor.

 1) Credit Builder loans

Credit builder loans are borrowings that help an individual improve their credit score. It does not have any credit score barrier to qualify. The interest rates could be more elevated than the recognition limit you may qualify for.

2) Payday loans

Lenders provide these loans to individuals needing immediate cash assistance. These are generally short-term loans for up to £1500. The individual can borrow these loans for 30 days- the repayment period. However, you can spread the payments according to affordability in months/ weeks. Talk this out with your lender.

3) Doorstep loan

Doorstep loans are home collection borrowings that one may borrow in case of strict time constraints to travel to the bank. These door-to-door loans do not require a borrower to make several bank visits. Once you contact the lender for your loan, you may receive it at the door. The representative collects the repayment or the loan amount from the borrower’s home on the due date. Analyse the requirement before borrowing as both doorstep and payday loans are high-interest offerings.

4) Secured loans

If you require an extensive amount without a guarantor on bad credit, you can opt for secured loans. You do not need a guarantor by putting up collateral as a security. The lender may approve the loan as quickly as possible. You can put up any valuable or precious belongings, like a car, or dividends match up the loan amount.

What Are the initial Advantages Of No Guarantor Loans?

One can use no guarantor loan for any purpose – from conducting home repair to strenuous car repairs. Whatever you choose to take the loan for, one should never rush into decision. Identify the monetary requirement and the urgency. If you find it unavoidable, then you can reach out to lenders. Here are some primary benefits of bad credit loans without a guarantor:

1. Multiple loan options

As mentioned above, there are multiple loans you can qualify for without a guarantor. You can check among these and apply for those aligning with your personal circumstances.

2.Reduces obligations and burden

No guarantor loans do not involve a third-person intervention, unlike guarantor loans and hence avoid mental pressure. It is especially true if the borrower struggles to repay the loan. In no guarantor loan, the borrower is solely responsible for making loan payments over the loan tenure.

3.Quick loan access

These loans do not require any stiff credit check or collateral check. Hence, individuals get approved as soon as they apply for the loan.

Having a guarantor or someone you trust is a blessing to individuals on bad credit. If you lack one, you can go for no guarantor loans. The blogs lists are options that you may qualify for without a guarantor.