No Guarantor Loans

What are no Guarantor Loans?

While a lot of people have actually heard of the term loan guarantor, many people are unsure of what it means exactly. Even then, it's another thing to know what will actually transpire in that type of loan. There are also no guarantor loans that can be had, and they're a different story altogether. 

Worried about the following question, is a guarantor loan worth the risk? A visit to our homepage offers insight into whether they are a risk worth taking.

Let's take a quick look at the two types of loans and how they differ.

A Guarantor Loan Is Like An Unsecured Loan

These loans aren't made against a piece of property or home but instead are made against a friend or

family member that will guarantee that the loan gets repaid. If the loan isn't repaid then the friend or family member has to make good on the loan. These are usually made to people with little or no credit history or really bad credit that will include repossessions and missed payments.

The person that agrees to repay the loan in case of default needs to have plenty of faith in the individual that's getting the loan. These can be risky, especially for family members, since other issues sometimes come into play when it comes time for payback. The person that guarantees the loan will have to have good credit and usually have to own their own home.

To find out more about ‘unsecured debt’ such as this type of loan, please check out the following article - https://en.wikipedia.org/wiki/Unsecured_debt

A No Guarantor Loan Is A Little Different

There is no friend or family member needed to get the loan, and they're usually made to people with either no credit or bad credit. The person requesting the loan will need to have a job, be over 18 years old and have a checking account as well.

To provide proof of a job a check stub or deposit slip is usually required, but not always. If the loan officer can find the phone number online and call your place of employment to verify that you work there, then they can usually still make the loan.

The reason that you have to have a checking account is that you will most likely have to have automatic deductions made for each payment on payday. This is a common requirement of guarantor loans without a guarantor that helps ensure that they get paid on time. They won't be checking your credit at all, so that's not a worry with this type of loan.

While Some Companies Charge Up Front Fees Not All Do

You'll want to look for companies that advertise no upfront fees, they do exist and you can find them online if the local lenders all require them. Read the paperwork carefully to make sure there are no hidden fees and that the terms and conditions are easy to understand and abide by.

If you happen to be unemployed, it's still possible to get a no guarantor loan, but it's going to be more difficult. Each company will have its own ways of trying to get you a loan, and you'll have to be patient in order to find one that can help you.

Be sure and do an online search and read some of the reviews from their previous customers to make sure they're on the level and treating their clients well. There are plenty of online companies to choose from if the local offices near you are difficult to deal with.