How can we get loans without a guarantor from a direct lender?



A loan without a guarantor is a financial facility you can tap into without involving a third person at the table. It implies the person accepting the loan agreement takes complete responsibility for repaying it within the decided agreement date.

If you share a bad credit profile, having a guarantor or a person can be helpful as he may assist you in qualifying for the loan that you otherwise may not get approval on.

There are times when you need money over 3 digits in an emergency. If you are a little low on credit or finances or are waiting for the salary credit, you would need immediate help to get across the situation. A bad credit loan without a guarantor can help you with the cash.

There are several types of loans that you can get without a guarantor- Secured and Unsecured. Before that, you must analyse your situation and identify whether these loans are for you.

5 Ways to get bad credit loans without a guarantor

Getting a guarantor with a poor credit history is sometimes challenging. Someone agreeing to back your finances with unstable income and pending bills is nothing less than a miracle.

It is only possible if you two share a deep bond. In most cases, individuals seek a bad credit loan without a guarantor for 2 reasons-

No guarantor possibility

Want to manage the finances independently

If you find these situations apt for your circumstances, here are some ways you can tap loans for bad credit with no guarantor and no feesfrom a direct lender as a feasible agreement:

1)      Sufficient and consistent income

Individuals with low credit profiles should make extra efforts to get loan approval. If you have a consistent income and a good employment history, you may get the loan without a guarantor on bad credit.

While providing a loan on a low credit check, lenders consider other aspects than just credit score. Income is one of those aspects. Self-employed may also apply if they hold pending invoices or have new projects.

2)      Lower Debt-to-income ratio

It is one of the most prominent factors when seeking a loan on bad credit without a guarantor. You need to ensure the lender that you can repay the loan amount without default.

A lower debt-to-income ratio implies that your income is more than your monthly debt payments.

For example, if you earn 25000/month and your debts total 8000/ month, you may get the loan. Thus, in-hand income should be more than your disposable income. It helps the lender believe you can pay the loan on time without missing payments.

3)      Borrowing a lower amount

Regardless of your needs, borrowing a lower amount increases the chances of approval. Check whether you can manage with a lower amount or bridge the rest amount with savings or friends’ help.

If your present finances and income do not meet the eligibility criteria to avail of a higher amount, the lender may reject the loan. Evaluate the possibilities to bridge some amount and borrow a small amount.

It not only means reduced interest rates, but you can also save on additional costs. What could be better than paying off the loan without impacting the bottom line?

4)      Get a co-applicant on a loan

You can think about it if you lack both income and credit score. In that case, the lender may not approve a loan without a guarantor.  A co-applicant is different from a guarantor. It may help you qualify but is equally responsible for loan payments.

Unlike the guarantor, who resumes payment only if the borrower defaults or lacks the income to continue payments. You can split the payments with a co-signer. It will be more affordable.

5)      Clearing the loan account

It is one of the best ways to secure a bad credit loan without a guarantor. You do not need someone to back your finance when you can reveal a stable credit history. You can ensure the same by clearing off some dues.

Check some loans that you can clear off. Spot the one with competitive interest rates. It will help you qualify for a small amount without a guarantor.

While these are some ways to qualify for bad credit loans with no guarantor, you may be thinking about the loans you can get on bad credit.

Which loans can you get for bad credit with increased approval rates?

Yes, there are some bad credit loans to get guaranteed approval from direct lendersin the country. Check the below facilities:

a)      Payday loans

Payday loans or salary-day loans are unsecured loans you can get on bad credit without a guarantor. The primary criterion to qualify for these loans is a stable income. 

The loan shares the most competitive interest rates. Thus, it is always ideal to use it for emergencies only. The amount you can borrow remains £1500 (maximum).

b)      Text loans

As the name symbolises, these are text-based loans where the lender provides cash via SMS. The only requirement here is to have income proof in any form.  You can avail of these in emergency and connectivity issues. You do not need a guarantor here.

These are short-term loans ideal for extreme financial tension and complications requiring immediate cash.

If you want, you can get the money in your account as well. It is ideal if you can meet your needs within £1000. Unemployed and retired individuals can also get doorstep loans.

c)       Guaranteed loans

These loans work as the name symbolises. You can get guaranteed loans for your needs if you meet the lender’s income, affordability, and repayment parameters. You can get up to 10000 for your needs. Check the urgency of th situation before applying for the loan. You should provide an income source slip and address proof to get these loans.


6)      Loans for people on benefits

If you are unemployed and share bad credit history, you can get loans for people on benefits.  All you need to provide is income proof in the form of unemployment benefits you receive. Some lenders consider it as income proof to provide a loan. It implies you can get the loan without providing a guarantor.

Bottom line

These are ways to get a loan on bad credit without a guarantor. You can get the aforementioned loans for your situation. Analyse which one suit you best.  You must host a regular income proof and stable credit profile to qualify.

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