Have you ever been in a financial rut and had no one to turn to? Did it seem impossible to obtain a loan without involving someone to co-sign it?
Having a loan is a dire need for many people. The ability to scale up your business or facilitate personal transactions heavily relies on the capital you have. To qualify for a loan, you need to fulfill some essential factors.
What is a non-guarantor loan?
A non-guarantor loan refers to a loan that does not require another person to repay if the borrower defaults on payment. Typically, this loan is an agreement between the borrower and the lender only.
There is something raunchy and forbidden about finding a guarantor. For one, your credit score could be lacking. With a poor credit score, finding someone to act as a buffer in case of a default could be hectic. Secondly, you place a higher risk on the assets of your guarantor in case an unexpected event comes up.
Advantages of non-guarantor loans
Usually, a situation that requires a loan is relatively urgent. Being able to access funds fast is a huge priority among many borrowers. The rigorous process of finding a guarantor can be daunting.
You need to find an established person with a good credit score and assets that will act as security. Further, you need the person to verify and co-sign the loan agreement. Although many people have good credit scores, some are unwilling to take the high risk inherent in guaranteeing a loan. The simple application process that non-guarantor loans bring is very convenient.
Non-guarantor loans prove to be more practical, especially where you need emergency funds. For instance, if you need a loan for your medical bill, then a non-guarantor loan comes in handy.
Accessibility by All
Non-guarantor loans are less stringent in terms of accessibility. If you have never taken a loan before and have no credit rating, you can still get funds. Further, if you have a poor credit score, your history does not impend you from getting funds. Some appealing facilities such as guarantor loans instant payout are for people with poor credit ratings.
Types of loans that you can get without a Guarantor
Payday loans are funds that the lender deducts the repayment on the date of your payday. So if you expect your monthly salary on a particular day, but some unforeseen emergency comes up, you can take a loan before that payday.
Payday loans have less stringent requirements and offer emergency funds. In case of default, the lender debits the account that you give during the loan application. You also do not need to have many assets. The collateral for your loan is your paycheck on the specific payday.
Another type of loan that you can get without a guarantor is a logbook loan. The lender, in this case, will use your vehicle as a security measure in case of default. All you need is to present your logbook for a swift process. The lender will then make valuations of the car and approve the loan based on the amount you require.
You can get the funds from the loan and still use your vehicle. The terms are excellent as long as you are religiously paying your repayment amounts at the due date.
Home Ownership Loan
Sometimes you can find yourself in a financial rut, and you need a lot of funds. Here, a homeownership loan will be ideal. The security of this loan is the property, and there is no need for a guarantor. Many lenders will facilitate funds for such a case, and the risk of default automatically means the property belongs to the lender.
Finding emergency funds within a short time can cause great turmoil. Overdrafts exist for this reason. You can either arrange with your bank for an overdraft in advance and enjoy the benefits of having more cash than you hold.
Where you have an emergency, you can still get an unarranged overdraft. Although the interest rate is relatively high, you can cater to your needs sufficiently.
If you need a loan to meet your personal needs, you will likely take a personal loan. The unsecured personal loan is popular within the industry because of its simplicity. You might need to take this loan for your bills, to purchase an item or for a fee.
One key factor lenders are keen on is your credit score. Once you pay up your previous loans in good time, then your credit score rises.
For personal loans, guarantor loans instant payout do not look at your credit score. Instead, a close friend or relative needs to co-sign the loan with you, and you can stand on your feet.
Salary Advance Loans
You can also get a salary advance. You can either talk to your employer or seek a scheme offering such services. There is usually a fee that comes with the higher advance. But, ultimately, you can get funds in good time.
Getting a loan without the gruesome task of having a guarantor is refreshing. Not only do you get to apply for the loan swiftly, but you can cater to your needs without being a burden. There is an array of loans that you can access without a guarantor. Depending on your condition, choose what works best for you.