No Guarantor Loans
No guarantor loans are a type of personal loan where you’re the only person responsible for making the repayments. This means you don’t need a family member, friend, or anyone else to co-sign or promise to repay the loan if you can’t. They can be an option for people who want to borrow in their own name or who simply don’t have someone willing or able to act as a guarantor.
In the UK, some FCA-authorised lenders offer no guarantor loans, making them a potential option for people with different credit backgrounds. Because you apply in your own name, your eligibility will depend on factors like your credit history, income, and affordability checks carried out by the lender.
What Are No Guarantor Loans?
No guarantor loans let you borrow money in your own name, based on your credit history and your ability to make the repayments. Unlike guarantor loans, you don’t need someone else to agree to repay the loan if you can’t. This can make the process simpler, as there’s no need to involve a third party. The amount you can borrow will depend on the lender, but it’s often between £100 and £5,000. Repayment terms can be from a few months to several years, depending on the type of loan and the lender’s criteria.
How Do No Guarantor Loans Work?
Application – You’ll fill in a form with details about your income, outgoings, and financial background.
Assessment – The lender will carry out credit and affordability checks to see if the loan is suitable for you.
Approval – If your application is accepted, the money will be sent directly to your bank account, sometimes on the same day, although this will depend on the lender.
Repayment – You’ll repay the loan in instalments or, in some cases, as a lump sum, following the agreed schedule.
Benefits of No Guarantor Loans
Independence – You borrow and repay in your own name, without needing a guarantor.
Accessibility – Some lenders consider applications from people with a range of credit histories, as long as the repayments are affordable.
Quick Process – Applications can be simple, and in some cases the money is paid out quickly, which can help with urgent costs.
Choice – These loans can come in different forms, including short-term loans, instalment loans, and personal loans.
Things to Consider
Interest Rates – The interest rate can be higher than other types of borrowing, especially if you have a poor credit history. Always check the total amount you’ll repay.
Repayment Obligations – Missing payments can mean extra charges, and it can also harm your credit score. Make sure the repayments are affordable before you commit.
Who Can Apply for No Guarantor Loans?
Lenders will each have their own rules, but you’ll usually need to be at least 18 years old, have a regular income, and be able to show you can afford the repayments.
Frequently Asked Questions
Guarantor loans require a third party to co-sign the loan and guarantee repayment if the borrower cannot pay. No guarantor loans rely solely on the borrower’s ability to repay.
Yes, many lenders offer no guarantor loans to individuals with poor credit, focusing on current affordability rather than past credit issues.
Funds are often available on the same day or within 24 hours of approval, depending on the lender and application timing.
Yes, all lenders offering no guarantor loans in the UK must be authorised by the Financial Conduct Authority (FCA). This ensures transparency and borrower protection.