When it comes to your finances, it’s important to understand all the facts and figures before filling out any applications that could affect your credit score. So, to help you understand the facts about ‘no guarantor loans’, here’s a handy guide. We look at what no guarantor loans are, who they’re best suited to, their advantages and disadvantages and how Sunny can help you.
What are no guarantor loans?
As the name suggests, a ‘no guarantor loan’ is a loan that doesn’t require a second party or guarantor to co-sign the repayment of the loan. A guarantor can be required for other loans to repay the money if the borrower fails to do so.
Loans with no guarantor can be a good financial solution for people who do not have someone willing to help them if their money falls short. However, some lenders are more likely to accept loan requests if there is a guarantor present, as this way they can be more confident their money will be returned to them.
Who is a no guarantor loan suited to?
Because the application for loans with no guarantor is quick and straightforward, these loans are best suited to emergency expenses. For example, an unexpected car repair or boiler breakdown will need fixing as soon as possible, so a quicker application process is desirable.
What are advantages and disadvantages of a no guarantor loan?
Loans without a guarantor mean you bypass the additional paperwork often associated with a loan where you do have a guarantor. You also don’t have to find someone who is willing to guarantee your loan for you, which greatly simplifies and speeds up the application process.
That being said, interest rates can be higher for no guarantor loans because they tend to be riskier for the lender. It also might be more difficult to get your loan approved alone, especially if you have a low credit score.
How can I improve my credit score?
Your credit score is based on your financial past and is generally in place to predict your future behaviour so companies can determine whether they can trust you to pay back any money they lend to you. If your loan applications keep getting rejected, your credit score could be the reason.
However, if your credit score is low, there are a few quick solutions that can help improve it. The first fix is to look at your credit score using CallCredit, Equifax, or Experian and check that there are no mistakes which could be bringing your score down. If you find any potential mistakes, report them to all three of the above agencies as soon as possible.
You can also register on the electoral roll if you are not already, or end financial associations and close joint bank accounts with those who have a poor credit rating. Do your best to stay on top of all of your bills, making at least your minimum payments on time each month. This includes utility and phone bills that can also impact your credit score if you miss payments. Try to avoid making any additional credit applications for a few months if you can.
Does Sunny offer no guarantor loans?
At Sunny, our loans do not require a guarantor, no matter how much you apply for, so if your application is approved, you can have money in your hand as soon as possible without the additional pesky paperwork. Although we do not ask for a guarantor, all of our applications are assessed thoroughly and quickly, so we can help ensure your financial security.
When considering a loan, we examine the applicant’s address, bank details, credit history and employment details to ensure that the loan is affordable for the borrower and their circumstances. Our checks are carried out in minutes once we receive an application. If the application is successful, the money can arrive in your account in as little as 15 minutes.
Our instalment loan sizes range from £100 to £2,500, over a variety of terms. Therefore, it’s likely there will be a flexible loan suited to your needs. For example, if you take out a loan with us of £150, on a loan term of 6 months, your total repayable amount with 1291% representative APR would be £299.82, which can be paid on a basis of £49.97 a month. The amount however, can always be repaid early at any time, which will save you money on interest.
Why choose Sunny?
As well as a quick but secure application process, we offer flexible repayment options. You have the ability to manage your loan through your online account, which allows you to spread the overall amount over a range of terms and make each repayment fit in with your budget. The time period you have to repay depends on how much you want to borrow, but you can of course repay early at any time to save money on interest rates. Even after borrowing, we offer a 5-day cooling-off period in case you change your mind, during which we will not charge you interest if you choose to call up and return the money.
In addition to this flexibility, we guarantee that there will be no extra or hidden fees throughout the process. This includes late repayments, application fees or administration fees. So, all you have to pay back is your original loan amount and interest.
We prioritise our borrowers’ financial future and aim to provide a lifeline that will help them in their time of need. Even if they are struggling to make their repayments, we do our best to work with them to help them through any troubles.
We encourage you to compare our loans and policies to other short-term lenders to find what is best suited to you and your financial situation. If you have any questions regarding our no guarantor loans, or our flexible repayment options, please check our Frequently Asked Questions. You can also contact us using our live chat, Facebook, Twitter or email and our friendly advisers will be happy to help you.