{"id":1545,"date":"2020-10-21T11:23:57","date_gmt":"2020-10-21T05:53:57","guid":{"rendered":"https:\/\/www.extramilefinance.uk\/blog\/?p=1545"},"modified":"2020-10-21T11:24:00","modified_gmt":"2020-10-21T05:54:00","slug":"how-to-borrow-without-a-guarantor-despite-a-bad-credit-rating","status":"publish","type":"post","link":"https:\/\/www.extramilefinance.uk\/blog\/how-to-borrow-without-a-guarantor-despite-a-bad-credit-rating\/","title":{"rendered":"How to Borrow without a Guarantor despite a Bad Credit Rating"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_52 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f892f7db204\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f892f7db204\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-borrow-without-a-guarantor-despite-a-bad-credit-rating\/#You_show_sufficient_income\" title=\"You\nshow sufficient income\">You\nshow sufficient income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-borrow-without-a-guarantor-despite-a-bad-credit-rating\/#Small_amount\" title=\"Small\namount\">Small\namount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-borrow-without-a-guarantor-despite-a-bad-credit-rating\/#You_have_been_making_recent_payments_on_time\" title=\"You\nhave been making recent payments on time\">You\nhave been making recent payments on time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.extramilefinance.uk\/blog\/how-to-borrow-without-a-guarantor-despite-a-bad-credit-rating\/#Borrowing_only_for_the_right_purpose\" title=\"Borrowing\nonly for the right purpose\">Borrowing\nonly for the right purpose<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>A credit\nscore is a key determinant to approve a loan application. If your credit report\nis not up to par, you will get a loan at a high-interest rate. However, there\nare some people who want to borrow money but they do not have a credit history.\nThis is the case when you are applying for a loan the first time. <\/p>\n\n\n\n<p>Since\nyour lender has no base to believe the fact that you will repay the debt on\ntime, you end up with a high-interest rate like in the case of bad credit borrowers.\nUnder such circumstances, the lender may require you to arrange a guarantor\nwith a good credit rating. This is because it mitigates the risk on the\nlender\u2019s part. <\/p>\n\n\n\n<p>Of\ncourse, a lender will hesitate to lend you money when you have a bad credit\nrating and the nature of the loan is unsecured. This is why a lender will\nrequire you to arrange a guarantor with a good credit history. However, it is not\npossible all the time. <\/p>\n\n\n\n<p>Now\nthe question is how you can get an approval for the loan without a guarantor. You\nmay think that you are fantasizing about getting a big loan approved without a guarantor,\nbut you can get money if you meet other conditions. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_show_sufficient_income\"><\/span>You\nshow sufficient income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Regardless\nof the size of the loan,. a lender will look over your affordability. If you\ncannot prove your repayment capacity, you will not get money no matter how good\nyour credit history is. <\/p>\n\n\n\n<p>If you are a first-time borrower or your credit rating is abysmal, you can still get <strong><a href=\"https:\/\/www.extramilefinance.uk\/loans\/without-guarantor.html\">loans without guarantor from direct lenders<\/a><\/strong> by proving that you can easily repay the debt on time. I<\/p>\n\n\n\n<p>f\nyou cannot arrange a guarantor due to any reason, your income should be high\nenough to prove your affordability to your lender. A higher-income improves the\nchances of approval despite a less-than-perfect credit score. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Small_amount\"><\/span>Small\namount<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You\nall know that no guarantor loans are aimed at funding unforeseen expenses and\ntherefore the size of these loans is not very big. Lenders generally lend as\nmuch amount as \u00a32,500. <\/p>\n\n\n\n<p>Make\nsure that you are not borrowing more than that. However, there are some lenders\nthat can lend you money more than this, but it does not mean they will not look\nover your income statement and needs. <\/p>\n\n\n\n<p>Borrowing\na small amount is always a better way to convince your lender to sign off on\nthe loan even if you have a bad credit rating. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"You_have_been_making_recent_payments_on_time\"><\/span>You\nhave been making recent payments on time<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Hard\ninquiries will show up on your credit file for six years. It means once you\nhave fallen behind repayments, your credit score will go down. <\/p>\n\n\n\n<p>Of\ncourse, your lender will make a decision after taking into account your credit\nrating, but they will also look at your current repayment ways, for instance, whether\nyou have been making your credit card bills and utility bills on time or not. <\/p>\n\n\n\n<p>To\nmake a good decision, it is crucial to look over recent repayments because your\nbad credit rating can be the result of default occurred one year ago, and ever\nsince you have been making all payments on time. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Borrowing_only_for_the_right_purpose\"><\/span>Borrowing\nonly for the right purpose<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Do\nnot forget that lenders ask the reason to borrow money although it is not\nnecessary but sometimes it can be a part of the process. Regardless of the\namount you are borrowing, make sure that you have the right reason to do so. <\/p>\n\n\n\n<p>No\nguarantor loans are small loans aimed at funding unforeseen expenses, for\ninstance, a medical treatment. <\/p>\n\n\n\n<p>If\nyou have come up with an emergency and your savings have fallen short of cash, you\ncan take out for these loans, but you should avoid borrowing money to fund your\nregular expenses. <\/p>\n\n\n\n<p>For\ninstance, if you have lost your job, you should try to cut down on your\nexpenses and dip into savings to make ends meet. Likewise, these loans are not\nan ideal option just because you want to buy a new mobile phone.<\/p>\n\n\n\n<p>You\ncan borrow money without a guarantor even if your credit rating is not perfect\nif you have a high income, have been making recent payments on time, and are\nborrowing a small amount of money. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>A credit score is a key determinant to approve a loan application. If your credit report is not up to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1545"}],"collection":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/comments?post=1545"}],"version-history":[{"count":1,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1545\/revisions"}],"predecessor-version":[{"id":1547,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/posts\/1545\/revisions\/1547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media\/1546"}],"wp:attachment":[{"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/media?parent=1545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/categories?post=1545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.extramilefinance.uk\/blog\/wp-json\/wp\/v2\/tags?post=1545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}