Non-Guarantor loans are an alternative to guarantor loans. A non-guarantor loan allows you to borrow money from a lender without having any 3rd party supporting your application.
There is no agreement or contract between the lender and guarantor on this type of loan; instead, it is purely an agreement between the borrower and the lender.
If you are wondering whether there are benefits of taking a non-guarantors loan, consider the following.
Ease and Quick Application
Unlike secured loans, the application procedure for a non-guaranteed loan is super easy and quick. Applicants can complete the application process in less than 2 minutes!
There is no need to go anywhere or even wait in line, and this saves your precious time
No Guarantor Needed
When you need money, you need it now. But unfortunately, most banks will not offer you loans without a guarantor, especially if you have had previous problems with your credit rating or finances.
It may seem like an obstacle to sorting your demanding financial needs, but not all is lost. There’s non guarantor loan that you can apply for directly without the inconvenience of requesting someone to guarantee you.
No Eligibility Criteria
One more thing that makes non-guarantor loans an excellent choice for many is that they have no complicated eligibility criteria. As long as you are of the right age (over 18 years to 75 years), you can qualify even if you have a poor credit score.
You Don’t Need to Attach Collateral.
Unlike other types of loans offered by many lending institutions, non-guarantor loans don’t require you to attach anything in the form of security to qualify. This is added plus, particularly to people who have minor possession.
Note: Since these loans don’t require any security, the lender might impose high interests on them.
Customized Repayment Modes
Since non-guarantor loans involve an agreement between borrowers and lending institutions, the borrowers can negotiate repayment periods depending on their income flow.
What this means is that there’s no fixed duration as to when you should clear the loan. In consequence, you are more flexible in your repayments and have fewer burdens.
Non-guarantor Loans Offer You Versatility
Whether you need a quick loan to fund your home refurbishing project or purchase a new smartphone, non-guarantors loans are readily available. You will realize that most lenders of these loans won’t require to know what you intend to use the loan for – as long as you can make agreements on interests and repayment durations, you are good to go.
Another significant benefit of non-guaranteed loans is that you don’t need to do too much paperwork.
In some cases, the lender will not even require you to fill out application paper, and when they, it’s just a few documents that can be uploaded even online, e.g. your ID or Passport.
Your Credit Score Doesn’t Matter.
Unlike banks and some other loans lending institutions, non-guaranteed loan lenders are fair to everyone in the sense that they won’t deny you loans simply because your credit score is poor.
Everyone is eligible for a loan with them as long as you meet their requirements, such as age and nationality.
Non-Guaranteed Loans Can Help you Build a Positive Credit Score
If your loan applications have been facing rejections due to your poor credit score, you can turn to non-guaranteed loans and use them to impact the credit score positively.
To achieve this, however, you need to borrow regularly and make repayment on time.
Note: Delays in repayment of non-guaranteed loans would worsen your credit score even further, and you may not be able to secure financial help from the same lender in the future.
Non-Guarantor Loans are Readily Available
If at one point or the other you’ve been in desperate need of cash, then you may have observed how hard it is to find a readily available willing lender. This is more so, particularly when you have no person to guarantor your application.
Luckily, non-guaranteed loan lenders are available at your convenience. Discovering them is as simple as making a few searches on the web, and you will have a comprehensive list you can’t exhaust.
The good thing is that you can also do your non-guaranteed loans application online– something that saves you t.
You Don’t Need Existing Membership to Any Financial Institution to Quality
The final thing you will appreciate about non-guarantor loans in the UK is that you don’t require existing members of any loan lending institutions to qualify. This means that you can borrow from any non-guaranteed loan lender even if you never dealt with them before.
For some other types of, e.g. guarantor loans, you will need to be well known by the lender before they can resolve to offer you a loan.
Non-Guaranteed Loans Upholds Your Privacy
This is common sense. When taking out a guarantor loan, you involve third parties who will probably want to know why you are taking loans and the amount you exactly need. They ask for such information so that they are fully aware of the amount they would be liable to pay if you fail to clear your loans.
Although the information is necessary, disclosing it exposes your financial deals – some of which you’d want to remain private.
The Bottom Line
As you can see from our discussion above, non-guaranteed loans have plenty of much to offer. These loans come in handy when you have pressing financial needs that can’t wait but have been denied help by other lenders such as banks. Besides, you avoid lengthy application procedures and get support when you need it the most.