What is a no-guarantor loan?
A no-guarantor loan is when you apply to borrow funds from a lender and are solely responsible for repaying the money. In the next section, we’ll explore the key differences and similarities between guarantor and no-guarantor loans.
Guarantor loan vs no-guarantor loan
| Guarantor loan | No-guarantor loan |
|---|---|
| You apply for a loan and nominate a trusted family member or friend who acts as your guarantor and agrees to make the repayments if you’re unable to. | You apply for a loan on your own. You and only you are accountable for paying back the money you borrow. |
| Could be a suitable option to consider for people with poor credit history, as the guarantor provides an extra layer of security for the lender. | Bad credit no-guarantor loans could also be available through specialist lenders, several of whom are on the Growing Power panel. |
| You can search and apply for a guarantor loan through either a credit broker or a direct lender. Please note that not all brokers and lenders will offer guarantor loans. | No-guarantor loans are also available through both selected credit brokers and direct lenders. |
| If you default on your repayments, your credit score will be harmed. If your guarantor also defaults on the repayment, their credit score will suffer too. Your lender could issue late fees and charges for a defaulted repayment. | Making a late repayment or missing one altogether will cause your credit score to decline. You could also be charged additional fees, which will increase the overall cost of borrowing. |
| You should be aware of the possible negative impact on the relationship with your chosen guarantor if something goes wrong with your repayments. | You should be mindful of how making a late repayment or missing one altogether will impact any future credit applications. |
Before you apply for a no-guarantor loan
Any type of loan is a serious financial commitment. Here are some questions to ask yourself before you apply for a no-guarantor loan.
- Is a loan the most suitable choice for me at this stage?
- How urgently do I need the money? If the expense can wait, how long will it take me to save up instead?
- Can I afford to pay back the money I borrow, which will include interest?
- Have I thought about how I’ll keep up with my repayment costs if my financial situation changes during the duration of the loan?
- Am I aware of the potential risks of falling behind on or making a late repayment? Do I fully understand how defaulting on a loan repayment will affect my credit score and any future credit applications?
Could I get a no-guarantor loan with Growing Power?
Growing Power is a credit broker, working with a large panel of lenders who offer no-guarantor loans.
You’re more than welcome to search for a no-guarantor loan with Growing Power if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account with a valid debit card; and
- Have a regular source of income paid into your bank account.
What repayment terms are available with no-guarantor loans?
With Growing Power, you can search for a no-guarantor loan from £100 to £10,000 with a repayment term between 3 and 60 months, depending on the amount of money you apply to borrow.
Bad credit no-guarantor loan
A guarantor loan could be a suitable option for those who need to borrow money but are worried that a history of poor credit might hold them back. However, you might be eligible for a no-guarantor loan, even with bad credit.
A number of the lenders on the Growing Power panel specialise in no-guarantor loans for people with bad credit and could be willing to consider your application.
While it might be possible for you to get a bad credit no-guarantor loan, you should think very carefully before you begin your search. A bad credit loan could come with a higher rate of interest, and it might not be possible for you to borrow as much money as you need.
Search for a no-guarantor loan with Growing Power
- Let us know how much money you need to borrow and select your preferred repayment term. Tell us a bit about yourself using our online form.
- Using the information you’ve provided, we’ll run a soft search on your credit file, with no impact to your credit score.*
- We’ll scan our panel of lenders for a suitable loan, and if we find you a match, you’ll be redirected to the lender’s website. Please note that being matched with a lender does not guarantee acceptance.
- If you’d like to make a full application, the lender will be required to carry out some additional affordability checks, which will include Open Banking or a hard search.
- Once the lender’s checks have been completed and they’re satisfied with the outcome, you will be sent a loan agreement, which will include your terms and conditions, as well as your repayment schedule. You should read through this carefully before deciding whether to sign and return.
Six reasons to choose Growing Power to help you search for a no-guarantor loan
- We’re trustworthy.
- We’re convenient.
- We’re transparent.
- We understand that bad credit doesn’t define you.
- We could save you time and help protect your credit score.
- Our lenders appreciate that you might need money fast.
Growing Power, and all the lenders we work with, is authorised and regulated by the Financial Conduct Authority (FCA).
Our form can be completed entirely online, 24 hours a day, 7 days a week, and takes just five minutes to fill out.
We don’t charge any fees for our service.
We’re proud to work with a number of lenders who specialise in no-guarantor loans for people with poor credit history.
When thinking about searching for a loan, knowing where to start can be the hardest part. As a credit broker, we’re able to search for a suitable loan for you by scanning the multiple lenders on our panel at the same time, with no impact to your credit score.*
Some of the lenders on our panel are able to send your funds on the same day as your application is approved.**
What happens if I can’t afford to make the repayments on my no-guarantor loan?
When you apply for a loan with a guarantor, they agree to step in and make your repayments if your financial circumstances change and you find yourself unable to keep up with the cost.
With a no-guarantor loan, you don’t have the safety net of a guarantor and will need to make sure that your repayment schedule is met on time each month.
If you’re struggling to make the repayments on your no-guarantor loan, you should contact your lender at the earliest opportunity.
Can I get free financial advice?
Free money and debt management support is available through the following charities and organisations: StepChange, MoneyHelper, Citizens Advice, and National Debtline.
*If we’re able to match you with a loan and you choose to make a full application directly with the lender, an affordability check will be caried out. This will include either a hard search or Open Banking. A hard search will stay on your credit file for up to 12 months, and multiple hard searches within a short space of time will negatively impact your credit score.
**Every lender will have their own payout timeframe. The time it takes for the money to become available in your account will depend on your bank’s policies and procedures.