Looking for a loan but not with a full credit check

As I have blogged before there are one or two lenders around that will offer you a no credit check loan so long as you can meet certain criteria. There are asset backed facilities where to borrow money you will need to put up your luxury car, piece of fine art or watch for example. You can can borrow up to £1,000,000 in this way.

For smaller personal loans or between £500 and £7500 with no credit check then a guarantor loan is likely to be the only viable option . You simply need to provide the added security of a guarantor who gives the lender comfort that the loan will be repaid if you default. This can be especially useful if you have little credit history or indeed a rather tarnished one. 

These loans can be processed very quickly and can be useful to perhaps consolidate other loans at higher rates such as payday loans. Granted a loan like this with an APR of circa 50% may sound high to some but if you have payday loan borrowings and aren't clearing them every month you will inevitably be paying APR's of 1000 plus. If you can find a guarantor and have not been made bankrupt or are in an IVA then a no credit check loan or guarantor loan may well be the answer.

We helped a customer on limited verifiable income and with adverse credit get a car loan paid out yesterday on an application she made only the day before. This shows precisely how swiftly the application can be processed if you have a suitable guarantor to help you with getting a loan.

For more information visit our site page dedicated to loans with no credit check 

Guarantor loans - A possible solution for people with a poor credit history

Guarantor Loans are a solution for customers who have never had credit in the past or have got a history of bad credit. There are many loan products available in the Uk, but the guarantor loan enables customers who have a good character and willingness to pay the opportunity to raise a loan should they need one. It could be seen as an irony that consumers in the uk who require credit the most are the least likely to get it. privilege.

Customers who have a lower credit score, whatever the reason are generally perceived to be a higher risk to banks and finance houses many lenders are therefore simply unwilling or unable to take on this type of financial liability. 

If you apply for a guarantor loan then you are effectively “guaranteeing” that your loan will be repaid to the lender. The lender is able to protect their exposure by allowing a guarantor to cosign the agreement so that if you, the applicant fails to pay your loan back to the lender they’ll be able to pursue your guarantor also for payment. It gives them a way of mitigating their potential losses so offering loans with a guarantor allows them to lend money to those who normally wouldn't qualify for such services.

Guarantor loans are most likely not for customers who may have a poor credit history but have no genuine intent to improve their situation. It is similar to applying for a job and not being able to supply character references. This type of loan will only be helpful to a customer who can find someone who is deemed a secure and responsible individual to stand guarantor to the loan. The guarantor for the loan is ultimately responsible for the payments should the applicant default, this is the lenders security.

You can borrow from £500 to £7500 and can find out more about this type of loan by visiting us HERE

Alternatives to payday loans

So, Derbyshire Building Society have just launched an incredibly low personal loan product  5.5% APR Representative for loans of £7,500 to £14,999 for up to 5 years. If you "Only" want to borrow £5000 then the rate jumps to a still excellent 7.2%. By comparison Payday loan lenders are regularly seen advertising APR's that run into the 1000's. Of course the APR's are skewed by the short term nature of the loan and comparatively processing costs also have a greater impact but none the less here you have the two ends of the personal loan spectrum. 

In between these poles is a broad range of lenders that will advance anything from £500 to £50,000 on an unsecured basis subject to your credit profile and affordability measuring up. Now, not everyone will be eligible for a loan at 5.5% because to be frank this will only be available to customers with an excellent credit profile, stable employment and fully traceable residency history. It's fair to say as well that many customers are only looking to borrow lesser sums and simply don't want £7,500. There are still though plenty of other lenders whose rates for example start at 12.9% for borrowings of at least £2000 that are worth considering.

If you can get a loan from your own bank then my advice as a broker is often to take it. We can offer a competitive rate of 7.9% for unsecured homeowner loans over £5000 but quite often your own bank or one of the major high street lenders will do a better deal on larger loans assuming again that your have good credit history.

The options for tenants or those with a weaker or bad credit profile become more limited. Guarantor loans though expensive at circa 50% APR are still a snip if you have run up and rolled over a couple of payday loans at 2000%. So long as you have someone who trusts you to repay the loan and is happy therefore to stand guarantor then you can borrow form £500 to £7500 if required.  

Ultimately you want to try and get the best rate you can and the most manageable monthly payment - so shop around, use a broker (ideally one not charging up front fees) like moneysolutionsuk and think before you apply.

Commercial Asset Finance solutions

 

Following the announcement of ING Lease UK to wind down their asset finance lending as of November, we can now offer a new hire purchase loan for values of £20,000 and over.

We can arrange funding up to 120% of the purchase price by funding the VAT if required. Qualifying assets for a hire purchase loan include any assets with a high resale value such as wheeled items, oil dripping assets, plant, machinery, equipment and more. The existing credit assessment simply requires two years of filed accounts and demonstration of affordability of the loan.
Don't forget we can also lend for any asset purchase up to £100,000 using our unsecured loan. Contact us today with your enquiry.