What is Commendable about No Guarantor Loans?
Your reputation in the society is largely weighed upon your financial status. People judge you on your financial capacity and it is a bitter truth that you have to accept it. You cannot change their perception and you cannot prevent what can happen next. Your life may trap into such financial crisis from where it is difficult to come out. People may make fun of you instead of helping. Only you have to find out the solution which could be applying for the loan.
A loan brings necessary funds into your pocket and you do not have to request others for having funds. But still a problem is here. Since people are already making distance from you, then how would you manage a guarantor? The absence of a guarantor may dismantle your chances of borrowing funds because it would be very hard for you to acquire loan from a bank without a guarantor. By looking at such difficulties of the people, few private lenders have come up with an alternative called no guarantor loans. As the people are utilising this credit alternative, its demand is increasing at rapid pace that forces loan companies to bring efficient deal on loan with no guarantor required.
The concerned financial authority in the UK is, however, strict on these sorts of loans. It is because a guarantor has an importance as a second borrower and signs the loan documents to co-hold the responsibility of loan repayments in case primary borrower fail to make repayments. In spite of that, loans have become a vital category of short term loans in this part of the world.
Guarantor Loan Vs No Guarantor Loan - You Should Know the Difference
As the trends are changing now, the debate is still continuing on whether a guarantor loan is better or no guarantor loan. The financial experts have their opinions on both the loans and they have suggested the importance of both at the different circumstances. However, it also depends upon the individual's circumstances and the credit scores.
A GUARANTOR LOAN is more like a traditional sort of lending where the borrowers seek the help of their friend or relative to become their guarantor. It would be a wise option to choose, but it is mandatory to have a guarantor with good credit rating. Majority of the credit lenders do not accept the guarantor with poor credit record. The benefits of guarantor loans include low interest rates and a chance of borrowing large funds for longer financial purposes.
There might be a situation when borrowers do not want to share their financial situations with anyone. But simultaneously, they require a guarantor to co-sign the loan agreement. In such scenario, NO GUARANTOR LOAN proves more effective because there is no such need of presenting a co-signer. Although, banks might not allow borrowers to avail loans with no guarantor, but a reliable direct lender can be approached in such scenario.
Why Should You Apply For No Guarantor Loan?
Prior to pick a loan option for yourself, you need to do a complete analysis on your own. At first, you have to be clear on the purpose of applying for no guarantor loans. Is your car damaged and do you need money to repair it? Do you want to clear off your dues? Do you require funds to renovate your home? You should analyse all these things before filling the application form for the loan.
Here are some of the questions that must be answered before applying for loans:
If you are still confused on answering these questions, then you might research online and read the experience of those people, who have already taken benefits of no guarantor loans. However, one thing that should be in your understanding that loans, where no guarantor is required, are suited for only short term financial purposes.
How Much Amount Can Be Borrowed?
The amount to be borrowed is varied from one borrower to another. It depends upon the financial needs of a particular borrower and also on the lenders' terms and conditions. Since no guarantor loans are applicable for the small funds, majority of the credit lenders provide loans for up to £5,000. The minimum amount could start from £100 to £500. Borrowers can pick the lender to borrow a specific amount that they think is adequate to save their finances. However, exceptions are always there, as few lenders are also offering loans up to £10,000, but they might need collateral to get back their amount within time schedule.
Will The Funds Deposit On The Same Day?
Borrowers have so many concerns while applying for the short term credit like no guarantor loans. They generally assume that lender will take time in approving their loan applications and the disbursal of funds will take few days to complete. It would be surprising for them to know that funds will come their way on the same day of application submitted by them. In fact, most of the modern-day lenders follow the method of 'SAME DAY APPROVAL'. It means borrowers do not have to wait for so long to get their desired funds into the deposit accounts.
A Concluding Remark
Provide loan is the profession of the loan companies. However, only few of them work according to the financial compulsions of the people. As a result, we can see now loans are available with no guarantor option. But there is also a reality that these lenders would help you up to some extent. As a borrower, you have the responsibility of making the right decision for you and your family. It is always correct to opt for no guarantor loan if your need is getting funds quickly, but it also means that you have agreed to pay higher interest rates because your application form has an empty column where guarantor's signature is generally required.
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