No Guarantor Loan | 786 Loans | UK

5 Tips to Apply for a No Guarantor Loan

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An unforeseen expense may agitate your finances. Tapping into your savings to cover these expenses isn’t the wisest idea. A personal loan can help you get through the rough patch. So, you won’t have to exhaust your savings, and you’ll have some time to stock up money to repay the loan.

A personal loan is an unsecured loan, meaning you won’t have to secure an asset against the loan. However, if you are looking to borrow money with a poor credit profile, lenders may ask for a guarantor – a Guarantor loan. Since it isn’t always feasible to involve family and friends in your finances, it is better to opt for a personal loan without a guarantor.

In this article, we’ll learn more about what no guarantor loans are and how you can get one.

What are no guarantor loans?

A guarantor is a friend or member of your family who partakes in a loan’s obligations with you. Guarantor loans are ideal for those with a below-average credit profile. Lenders ask for a guarantor to co-sign the loan agreement with the borrower to reduce the risk of loss. Now, if you fail to repay, the lender will hold your guarantor accountable for repayments. The lender may recoup their loss by selling your guarantor’s assets.

Most loans are loans without a guarantor. Personal loans, secured loans, home improvement loans, short-term loans, or title loans, per se, won’t usually require you to present a guarantor.

However, not all of us can get a guarantor to co-sign our loans. Or, you simply might choose not to add a third person into the equation. This is when no guarantor loans are ideal. A no guarantor loan is, fundamentally, a personal loan wherein you don’t need collateral or a guarantor. The offers that you get on a personal loan, however, will be determined by your credit profile. If you’ve exhibited responsible credit behavior in the past, you will most likely get manageable loan offers. It’s difficult to find a lender who offers a decent interest rate if you have a poor credit history.

Even if you do find one, the terms associated with the loan can be unreasonable. The interest rates for such loans are higher than most forms of credit, such as a personal loan. With such extortionate rates, you may end up repaying more in interest.

What is the eligibility criteria for a no guarantor loan?

There are basic eligibility criteria for a no guarantor loan. So long as you meet the pre-requisites, your chances of qualifying for one are high. A lender generally checks the following:

  • Credit history
  • Latest credit score
  • Residential history
  • Employment history
  • Annual income
  • Debt-to-income ratio
  • Monthly expenses

All you need to do is provide the lender with accurate information about yourself. The lender will perform a credit check on your profile, and any discrepancies will have consequences. Lenders always perform credit checks before approving loans, regardless of your credit rating.

If you have defaulted in the past and have a CCJ issued against yourself, you might face a hard time getting a loan. Moreover, multiple credit checks can negatively impact your credit score, irrespective of the lender’s decision. So, estimating your eligibility before applying for a loan is good practice.

Is it wise to apply without a guarantor?

You need to thoroughly evaluate whether or not a no guarantor loan is suitable for you. Assess all the options available to you, and then check your eligibility for each. If you think a no guarantor loan is an ideal option and you happen to satisfy the criteria, go ahead and apply for one. 

The key is to ensure that you’re only borrowing the amount that you need and can afford to repay. Timely repayments are essential for any form of credit. Not only will a default deteriorate your credit score, but you may also end up getting a CCJ.

Applying for a no guarantor loan

The loan application process for a no guarantor loan is pretty straightforward. Below is a list of steps to complete your no guarantor loan application procedure, along with some tips:

  • Decide an amount – Assess your finance to identify the amount of money that you want to borrow.
  • Finalize a loan term – Work out how long you will take to repay the loan and decide on a term accordingly.
  • Do a credit assessment – Carefully go through your credit report to find the gaps. If you find any errors, get them fixed to improve your credit score.
  • Identify your loan type – Run research on the types of loans available in the market. Find out which type of loan fulfills your need.
  • Apply for loans – Fill out your details to apply for no guarantor loans.
  • Do some loan shopping – Gather all your loan offers and choose the best, most feasible option.

5 Tips to Apply for a No Guarantor Loan

Here are 6 tips to help you apply for a loan without a guarantor:

  • Watch out for loan sharks – Loan sharks have loan offers which ‘appear’ to be nice. However, there are exorbitant interests associated with their loans, so beware.
  • Rectify any mistakes in your credit report – Before applying for a loan, scrupulously check your credit report for mistakes. If you find some, get them rectified so that your credit score gets a boost. This will help you get better loan terms with lenders.
  • Borrow only what you need – Carefully assess your expenses and borrow only what you need, and can afford. Don’t over-borrow just because you can qualify for a higher loan amount.
  • Check the cost of your loan – Determine the overall cost of a loan before accepting a loan offer. Ideally, you would choose one with the lowest interest. But it’s important to check which offer comes with the lowest APR.
  • Make a repayment plan – It is important to have a clear and precise repayment plan in place, before taking out a loan. This will help you align your monthly expenses with the loan repayments so that you don’t miss any.


A no guarantor loan, or, put simply, a personal loan, is a convenient option for those without a guarantor. You will need to work on improving your credit score to get better terms on loan offers. Shop around for offers before accepting one and ensure that you compare the APRs. Try to steer clear of loan sharks, who, despite the FCA’s strict measures, still operate in the UK.

786 Loans can be your helping hand when you find yourself stuck in a financial crisis. Visit us to find a loan that suits your needs.