No Guarantor Loans

What is a no guarantor loan?

As the name suggests, no guarantor loans don’t require a second party or guarantor to be on standby to pay for you in the event you can’t make a payment. This means you can apply on your own for the money you need.

Loans without a guarantor can be a good financial solution if you aren’t in a position to ask somebody to help you if you should fall short of money, whether because they’re unable to help or because you’d prefer not to ask.

Guarantors are often required for those with bad credit, which can be an obstacle to getting the finance you need. This is because you are seen as a bigger risk with a poor credit history. However, it is possible to receive a no guarantor loan even if you have poor credit, but make sure you research the loan you are about to take out and fully understand the T&Cs.

Pros and cons of a no guarantor loan

The main benefit of a no guarantor loan is that they often require less paperwork than is often associated with a loan where you do need a guarantor. You also don’t have to find someone to guarantee your loan for you, which simplifies and speeds up the application process.

However, there are downsides to no guarantor loans. For instance, interest rates can be higher for no guarantor loans. This is because they tend to be considered riskier for the lender. It also might be more difficult to get your loan approved alone, especially if you have a poor credit history.

At Sunny, loans do not require a guarantor, no matter how much you apply for, so if your application is approved, you could receive your money quickly. Although our broker partner’s lenders do not ask for a guarantor, all of our applications are assessed thoroughly and quickly, so we can help ensure your financial security.

Eligibility for no guarantor loans

When considering any application for a no guarantor loan, lenders will examine the applicant’s address, bank details, credit history and employment details to ensure they meet their criteria, and that the loan is affordable for the borrower and their circumstances. All direct lenders have their own criteria for loans without a guarantor, but, in general, you must:

• Be over 18 years old
• Be a UK resident
• Have a regular income source

Also, lenders will perform a thorough credit check and affordability assessment when considering your application. Your credit score is based on your financial past and is generally used to predict your future behaviour so companies can determine how likely you are to be able to pay back any money they lend to you. If your loan applications keep getting rejected, examining your credit history is a good place to start in understanding why.

Our partners lender panel will first perform a “soft search”, which doesn’t affect your credit rating. They’ll then let you know if your application is likely to be accepted. After this, a full credit check will be done if you decide to apply.

Can I get bad credit loans without a guarantor?

Yes, it is possible to get a no guarantor loan with bad credit, though you will have less choice. If you have poor credit, having a guarantor can increase your chances of borrowing, but at Sunny, we understand that everyone’s financial circumstances are different, and you can apply for any loan without one, with good or bad credit. Take a look at our bad credit loans guide for more information on obtaining a payday loan with a poor credit history.

Related: What is a credit score?