Benefits to No Guarantor Loans

If you have put together some savings over the years you have done so for a reason. For many people, a savings fund that they have built over time is for a specific big-ticket item, such as a holiday of a lifetime, a new car, or a home renovation project. For many people though, your savings account is for a rainy-day fund, for emergency use only and if you are planning on some of those other items it might be best not to use up your savings and leave you with nowhere to go in the worst-case scenario in the future. If you are worried about finding the finance for a big project and don’t want to have to find a guarantor to get a loan, think about searching for a no guarantor loan to help you get to where you need to be.

Taking out a no guarantor loan to help you with whatever big project you have coming up, will help alleviate the pressure on you financially. A personal loan helps you to put a clear finance plan in place to get to where you need to be, without the worry of burning through your savings account. It helps you to spread the cost of a project and for you to pay back the loan at a manageable rate over the coming months and years, rather than worrying about paying for a project or item in full, up front.

What is a no guarantor loan?

Most loans come without the need for a guarantor to be listed on the agreement. For a personal loan, a home improvement loan, short-term loan, or any secured loan, you usually won’t see the need for a guarantor. A guarantor is a member of your family or a close friend who ‘vouches’ for you when it comes to seeking a line of credit. They become liable to make repayments on a loan if you are unable to do so. The most common case of a guarantor is where young people are renting property for the first time away from home and require assistance from their parent or guardian to make payments if they fail to do so.

What if I don’t have or want a guarantor?

There are many situations where people don’t have close family members or friends who are in a position to become legally liable to repay credit should they fail to do so themselves. A no guarantor loan is the best way to bridge your personal finances in these situations. It is important though in many cases, to have a good credit score if you are searching for a no guarantor loan to help you out. Eligibility for a no guarantor loan is different from lender to lender of course.

Seek out a financial broker with access to the best rates for no guarantor loans and eligibility criteria that suits your personal financial needs and the repayment terms that will work best for you over the coming months and years.

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