Extramile Finance

You may not have the same income, financial circumstances, or credit score every time. It is bound to change with the shifting economic situation and lifestyle preferences. For example, when you move house, the expenses increase, but the income does not. One thus depends on external credit facilities like credit cards and loans. This eventually burdens the credit utilisation limit and affects the credit score.

It impacts your possibilities to qualify for further short and long-term loans. Even if you do, you may need to provide additional security, like a guarantor. However, it is not possible to invite another entity to a loan for minute loan needs. So, is there a middle way to tackle this? Yes, in this case, you can rely on bad credit loans without a guarantor requirement.

Why do individuals struggle to find a guarantor for a loan?

A guarantor is a third person who helps the prime borrower qualify for the loan with bad credit. He provides the strength of a good credit score, financial management, and income. This reveals and releases the worries for the loan provider regarding the non-repayment. Thus, a guarantor helps one qualify instantly for better interest rates.

Sometimes, finding a guarantor (a family member or a friend) with whom you share a good bond is challenging.  What if the other person does not want to be your guarantor? Moreover, finding one delays the process of accomplishing goals.

How do bad credit loans from a direct lender work?

A bad credit loan is a financial facility for individuals with missed payments, CCJ, penalties or bankruptcies. It helps one meet the needs regardless of the credit mistakes.  These loans don’t always require a third-party security like a guarantor or collateral.

Instead, you may get very bad credit loans with no guarantor from a direct lender for small needs. Getting one with a direct lender eliminates the information vulnerability. You can interact with the verified direct lender and get the funds through encryption. Your information remains safe without any security violations.

The best part of the direct lender’s loan is that you don’t need to pay a broker. Instead, you only pay the loan costs, like interest, along with the principal on the loan. Here is how getting a bad credit loan from a direct lender works:

• Step 1- You apply for an amount with a specific bad credit loan provider
• Step 2- Pre-qualify across different providers to finalise the affordable one
• Step 3- Apply by providing basic information and get a personalised quote
• Step 4- Provide the proof of affordability and other documents
• Step 5- You get the flexibility to choose the loan repayment term
• Step 6- Get the cash and repay it in small and fixed monthly instalments

Why choose a direct lender for a bad credit loan?

You may have multiple queries regarding a loan. It could be the borrowing amount, repayment term, total costs to pay, etc. A broker may not be able to provide clarity due to delayed turnarounds. Here, contacting a direct lender is helpful.  He analyses your finances, credit score, and income to provide detailed guidance regarding the queries. The right one answers all your questions fearlessly.

Bad credit loans from a direct lender	Bad credit loans from a broker
You get the loan fast by directly applying with a direct lender. They help you at each step and provide money the same day.	A broker takes your details and discusses the loan possibility with lenders in his network. It is a time-consuming process.
You share the information – financial and personal, only with a direct lender.	The broker shares your financial report and requirements with multiple lenders, making the information vulnerable.
You may get detailed and expert insight into reducing the loan costs and fees from private lenders in the UK marketplace.	Brokers don’t provide any insight into getting an affordable loan. They act just as a middleman between the lender and the borrower.
You can choose the direct lender according to your research and preference.	You share little dominance or freedom to choose a direct lender, as the broker provides one accordingly.

Frequently Asked Questions

Now, let’s analyse some common queries that we receive regarding the bad credit loan without a guarantor. It will help you understand the aspect well:

• What are the main eligibility criteria for these loans?

You may get a bad credit loan if you meet he basic eligibility criteria. It may differ across the loan providers. Here is what you may expect:

• Should be 18+ as a permanent UK citizen
• Have an active bank account with direct debit
• Must be living at the same address for at least 6 months
• Must have a recurring income (part-time/full-time/self-employed/pension)
• Should not have an active bankruptcy status and must have obtained clearance at least 6 months before
• You must be able to afford the loan payments, given the budget and liabilities

• Do I need to provide collateral?

No, you don’t need to provide collateral if you can afford to repay the dues comfortably. Alternatively, if you lack regular income, have pending debts and needs exceed £10000, you must provide collateral.  It is especially mandatory for individuals who cannot provide a guarantor in this case.

• How fast can I receive the funds?

You get the funds on the same day, within 24 hours, on a bad credit loan without a guarantor. It involves limited documentation, checks, and collateral is not mandatory. All this improves the loan turnaround times. Additionally, make sure to provide accurate information without spelling or numerical errors to avoid loan rejection or delay.

• Is the interest rate higher on very bad credit loans without a guarantor?

Yes, the interest rate you get on a loan without a guarantor is slightly higher than the one with a guarantor. It is because the direct lender lacks anything to look up to if you default (in case). Thus, they charge competitive interest to cover up for the non-repayment loss. 

You can reduce the interest costs by applying for a smaller amount than what you need. Update the credit report and other financial documents before applying.