When your credit score is low, a guarantor can act as an armoured saviour to protect your credit needs. However, with bad credit situation, it is not easy to get the guard your way and you may urgently need to settle down with no guarantor loans.
However seeking no guarantor loans from conventional lenders would not be a cakewalk. Mainstream lenders lend after assessing the credit situation and charge interest rate at par with your credit score. With a low score, they would either reject the application or would demand a very high-interest rate.
A loan rejection brings a red flag on your credit report and thus you cannot afford to apply to several lenders and bear the rejection. Before filling the loan application you thus need to ensure that your application is valid and serve the lender’s purpose.
How to find a lender interested in no guarantor loans for bad credit situation?
A lot of online lenders are interested in offering no guarantor loans to people suffering from bad credit score. However, a lot of loan sharks are also functional in the UK. So you need to be really careful before sealing the deal. Here is a step by step process to search for no guarantor loans for bad credit.
1. Search for loan brokers in the UK on your favourite search engine. Make a list of 10 brokers in a diary. Now read their customer reviews and note down the details. Compare the results and short list a broker with maximum experience or relevant experience. Make sure you choose an FCA authorised loan broker only. The FCA is a financial watchdog for the UK and any financial company acting against the consumers’ interest can be reported here.
2. Visit the official website of the selected broker and contact them by filling an online form on their website. You would be required to share your personal details including account name, contact details and debt profile. The brokers do not charge any upfront fees from the borrowers. So you can contact them without worrying about your credit situation.
3. Within a day or two, the broking firm would contact you and seek further information about your credit requirements. They never initiate hard checks on your profile and ensure that no footprint is ever made on your credit report during the course of loan approval. The financial agent would assess your report and search for closest match loans which would not be as easy to find yourself.
4. While sharing your credit concerns, be firm on your repayment capability. You need not hide away your leaning cash flows. Be honest about how much you could spare every month. Whether you are looking for no guarantor loans for unemployed people on benefits or for those who have over used their credit limit, a broker can help you find the best match loan according to your credit situation.
5. You are under no obligation to abide by broker’s advice. You can follow the advice only after you seek a blueprint for credit improvement. The bad credit loans are offered at the higher rate of interest. And you should avail the loan only when you are determined to pay them back. With the repayment of the loan, you would build the good history. It will improve your score and you may soon be never required to call a guarantor to apply for a loan anymore.