A no guarantor loan is one of those loan options that come with a lot of benefits to begin with.
Here is where you can get an additional facility.
That is what we are going to discuss in this blog today.
A guarantor is a person or an institution who takes responsibility for your loan repayment or the entire loan term if you are unable to do so.
In other words, the lenders hold you responsible if you are not able t repay the loan at the right time.
Now the fact is that most guarantor loans aren’t as easy as you think them to be.
On the other hand, no guarantor loans are much friendlier to take out and repay. They involve little to no hassles in the lending process and are also very interesting to learn about.
As a bonus, you might be able to get some good financial benefits from it and make contributions to your personal finances more than ever.
But the guarantor loans are offered by lenders too, and they also have their plus sides.
This means that now you can get confused with a loan without a guarantor.
Drive the confusion out with this post, where you can find out at which conditions taking out a no guarantor loan can be beneficial.
Why a No Guarantor Loan Makes More Monetary Sense
Well, to answer that question, you need to understand the basic definition of a no-guarantor loan.
A loan of this type is particularly what we would like to call a simple personal or unsecured loan with the relationship entirely revolving around the borrower and the direct lenders. No third party, such as a guarantor or even a co-signer, is involved, which tends to complicate the loan further and make you get the money slower.
No offence to guarantors, though.
There are conditions or circumstances, though, when a guarantor makes enough sense.
We can talk about that later in some other post.
For now, you can consider the following points to learn more about the loans that we are speaking about and when taking them out can make sense to you in the financial sense:
When You Are in Need of Fast Cash
Cash money can help you pay bills; make necessary payments earlier; be serious with an urgent payment; handle emergencies; repair your home or make a purchase decision when your favourite product is on some offers and do a lot more…
So, if you take out a simple loan with no such people working as a guarantor, you can be sure that the money is going to be offered y your lenders at a blazing fast speed.
You can make your payments using that money and can also go for making the payments early on and
As mentioned earlier, the guarantor can be a person such as your family member, relative, or friend. In other cases, you can make an institution or an organisation perform the role of your personal loan guarantor, such as your employer.
Well, now that you know that you can make payments with such a quick service as this, it will be easier for you to manage your payments.
If You Need a Quick Help in Emergencies
Emergency circumstances can require financial aid from s in a serious way, and if we can provide it even faster than the actual need is, then we can even do it better.
A personal loan with no guarantor involved is the type of loan that does not involve the time-consuming process of checking the guarantor’s credit score and all other financial documents associated with the person.
As a result, the verification process is doing in a few minutes, and you get the loan approval even sooner than you expected.
Isn’t that a fast lending process?
In Case You Want to Keep Relationships Good
No one is saying that making a family member a guarantor will mess up your relationship.
But the thing is, there are some risks involved.
They are:
- The guarantor can have financial troubles.
- The guarantor can lose a job.
- Again, your relationship with the guarantor can be affected for personal reasons, which will affect the lending process.
- The guarantor might choose not to be your guarantor.
There might be many reasons why you and your guarantor can face problems among yourselves.
So, the bottom line is if you want to keep your relationship with your family members or anybody you have been thinking of making into a guarantor, then choosing the no guarantor way is going to keep things on the right track, in a generalised sense, that is.
If You Have a Good Income (Even in a Low Credit Score)
As you see, direct lenders are going to authorise the disbursal of a loan only when they are sure that you repay the money not just in a guaranteed sense but also comfortably.
Your income comes into play for that.
If your income is good enough and it can supply the lenders with a good debt-to-income ratio, and they find out you are not compromising the vital things in your life for the sake of the loan, then you are welcome to take out the loan from them.
And the good news is that you don’t need to bring in a guarantor with you for the loan.
Just make it certain to the lenders that your earnings are stable and that it makes sense to repay the loan amount.
You can do almost any job as you please. It can be a part-time or a freelance job. But it must be a stable occupation that would successfully make your loan repayments in time.
To Conclude
For parting advice, it can be that it is important to find a trustworthy lender.
You might miss out on those affordable deals if you cannot do that.
To make that happen, search for direct lenders and then analyse the loan rates they are offering.
If you track an affordable deal using a loan calculator, you can surely save money on a loan with no guarantor.Â
