No Guarantor Loans

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

Non Guarantor Loans – some examples

With non-guarantor loans, you are able to apply online one-on-one with the lender through their website. These types of loans include:

• payday loans
• logbook loans
• peer to peer loans
• personal/unsecured loans

Payday Loans

Payday loans are probably the closest to the guarantor ones and they involve borrowing up to £1,500 which is supposed to last you until payday, when you next get paid by your employer.

This type of loan is designed to fulfil an immediate cashflow shortage. Maybe you have an emergency expense such as a broken boiler, car repair or pet bill but you don’t have quite enough in your bank account. But with payday loans, you can potentially receive money within one hour of applying and in one lump sum, so you can quickly pay off your expense and then the loan repayment and interest will simply come out of your debit account on your next pay date from work, usually the last Friday of the month.

As the industry becomes more competitive, there are several variations of payday loans including revolving monthly credit from the likes of Sunny and SafetyNetCredit and instalment lenders where you can borrow over 3,6 or 12 months from the likes of Quickquid and MY JAR.

This product is not supposed to be a long term solution because the APRs are quite high relative to credit cards and other financial products. These are literally supposed to be for only a few weeks or months (if it is an instalment product) and not something like 5 or 10 years.

Logbook Loans

Logbook loans allow you to borrow between £500 to £50,000 and the idea is that you apply for the loan secured on your vehicle such as your car, van or motorbike.

This offers a great way to borrow a large amount but there are a lot of risks if you cannot repay your logbook loan such as added fees and repossession of your vehicle. This could be a huge disadvantage if you need your vehicle to get to work or if its part of your job.

Logbook loans also require a bit of paperwork so they are not ideal for fast cash or emergency money. The lender needs to asses the value of your car and how much they could potentially sell it for, your personal credit history and affordability. You will also need your MOT and ‘logbook’ of your car handy when applying.

Peer to Peer Loans

Peer to peer loans involve individuals lending to other individuals and the rate you get and amount you can borrow is based on how good your credit score is.

How peer to peer lending works is that good credit borrowers may be eligible to borrow up to £15,000 and they will get a better interest rate. The funds are provided by other members of the UK public who are usually investors and they will get a return on their investment based on the borrower repaying on time. Borrowers with bad credit will pay a higher rate to the investor whereas customers with good credit will pay a lower interest rate because they have a lower risk of defaulting.

Personal Loans

This is another individual loan but is associated with longer term borrowing and large amounts e.g £10,000 over 5 years.

These types of loans are typically unsecured and could come from your bank or other lender. The APR per year can be just a few percent e.g 2%, 3% or 4%

Loans Without Guarantors – why would you want this type of loan?

Cannot find a guarantor – Not everybody can find a guarantor. Firstly it involves speaking to someone about your finances and approaching them. Secondly, you need someone who has good credit. If the person you want to approach doesn’t have good credit or has worse credit than you, it is unlikely that your loan will be accepted. There is also the issue of whether the guarantor of your choice can afford to repay your loan if you cannot which is why sometimes it is hard to find the right guarantor for you. This is why a no guarantor loan is more convenient in this case because you can apply directly with the lender without having to approach another person.

Hassle – we appreciate that applying for a guarantor loan requires the person to sign documents (usually online) and also speak on the phone to one of the lender’s to give their consent. If the person is doing you a favour, they may not want to be bothered at home or work and take time out to speak to customer care teams. The person may not be available when you need them. If you need the loan soon or want it that day, your guarantor may not be available to speak over the phone. With this in mind, a no guarantor loan allows you to apply on your own without having to get another person involved and wait on their response.

Emergency – Similar to the reason above, if you need the loan for an emergency purpose such as a car repair or expensive dental or medical bill, you may prefer to apply straight with a lender on your own because you don’t have the time to speak to your guarantor beforehand and get them involved in the process. In the event of an emergency, you require the money fast and since a guarantor loan is a slightly longer process, you may prefer other loans without guarantors.

The no Guarantor Loans we offer

At Guarantor loan comparison, we are slowly adding more lenders to our site and we want to give our users the opportunity to apply with non guarantor lenders as well. Our site is completely free to use and we will never pass on any of your details to third party companies. To apply for a loan on our site, simply click on the lender of your choice and you will be taken straight to their site where you can apply. We take a small commission from your application, provided it is successful, and this allows us to make our site free and always free.