Getting a loan with bad credit and no guarantor can be sometimes daunting to accomplish. When you need to borrow money with a bad credit, there are not so many options that you are left with. This can even get worse if the only viable option that people with bad credit can borrow money – a guarantor loan is not an option for you because there is nobody who is willing and able to be your guarantor. You do not need to give up because it is possible to get a loan with bad credit and no guarantor as there are a number of options available to you.
Ways to Get a Loan With Bad Credit and no Guarantor
Peer to Peer Lending
A lot of people who have a bad credit and no guarantor are now looking in the direction of peer to peer lending to help them out. This type of borrowing is a new way people are borrowing and lending money. This can be likened to borrowing money from a friend but in this case it is from strangers online. These individuals are willing to lend you money that you need and many times they offer repayment terms that you would not get in a bank. That said, it is important to be careful when lending money on peer to peer lending platform as this is still a new method of borrowing and lending so caution needs to be exercised when lending on this platform as it is not strictly regulated by the FCA as it ought to be.
From Family and Friends
It might be a good idea to speak to your family and friends if you are struggling to find a loan. Most times, these set of people are usually happy to lend you money and allow you to repay when you are back on your feet. However, it is important to bear in mind that family and friends may have to dip into the emergency fund in order to lend you money, so don’t get offended if they can’t afford to do this. Also be careful not to put too much pressure on them, you just have to keep an open mind and make them to understand that they are free to say no.
Commercial banks are not a charity organization and so they have strict guidelines that are followed in order to approve a loan request. This is not the same with payday lenders as they have a simple way of granting a loan with bad credit and no guarantor. Payday loan is good when you are in a one-off situation and you need money to see you through to payday. If you are certain that you would be able to repay the loan by the end of the month and not leave yourself short for next month, then this option might just be right for you. You do not need a guarantor in order to secure this loan and the debt you will be incurring is relatively a short term one. Be very careful when applying for payday loans as it is very easy to fall into a cycle where you will be solely dependent on payday loans.