Loans for Bad Credit: No Guarantor

A guarantor loan requires someone else to agree to cover any payment you are obligated to make. No guarantor loans are the inverse - you apply on your own and are entirely responsible for repayments.

Borrowers frequently seek guarantor loans because they are afraid that lenders may reject their loan requests due to their poor or no credit history.

How Do No-Guarantor Loans for Bad Credit Work?

If you have bad or no credit yet required to take out extra money on the side, bad credit loans with no guarantor might be an excellent alternative to consider. These funding options are easier to qualify for if you have less than perfect credit, but higher-than-average interest rates may leave much to be desired.

Advantages and Pitfalls of Bad Credit Loans with No Guarantor

The Pros:

  • There is no need to be concerned that someone else will be responsible for paying off the loan if you fall behind on your payment.
  • The loan processing would be much quicker and easier since the credit arrangement is only between you and a lender.
  • No-guarantor loans for bad credit are feasible when unexpected costs arise, such as a car breakdown or a medical emergency.

The Cons:

  • No guarantor loans offer relatively higher interest rates compared to secured bad credit or guarantor loans.
  • You may have a pretty limited choice of quick funding alternatives when you have bad/no credit. Thus, you are required to choose between loans with higher price tags.
  • You are more likely to get offered a one-time payment than multiple installments spread over a long period when it comes to credit repayment. Consequently, you will have no wiggle space if you have a tight month. Before taking out a loan, make sure you can manage to pay off the loan on time; otherwise, you are doomed to roll it over periodically for a very long time.

 

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