What are No Guarantor Loans?

Sometimes you are in need of financial help and there doesn’t seem to be any person, service, or financial institution around that is willing to help you. If you are looking for certain types of financial help there might be the requirement from traditional lending services of a guarantor to sign the application documents alongside you in the event of you failing to keep up with agreed repayments. A no guarantor loan takes this hassle away from the application process of payday loan applications and ensures that you can acquire the finances you need to make a difference to your life right now, without having to jump through too many hoops to do so.

Whether you need a same day loan for £200 or a larger instalment loan of £1,000 needing a guarantor on an application can slow the entire process down to a crawl, and go against the whole reason you are looking for a fast cash injection in the first place. With fast no guarantor loans from a short-term loan lender you can have the money sent direct to your bank account within a day of your application being processed in most cases with reputable and responsible payday loan companies.

A guarantor is a person who acts as the safety net on your application for any form of credit where a guarantor is required. When a lender would like to know that they are covered in the event of the borrower being unable to make repayments under the agreed terms, the guarantor would then step in and be liable for the debt. This has been a popular way to award credit in many forms over the years, with the guarantor taking over the debt repayments until the total debt and interest has been paid off.

A guarantor loan might come with lower interest rates than no guarantor loans, but there is the snag that it often takes a lot longer to process an application of this nature. Compare this with the fast nature of no guarantor loans and you can see why they are so attractive to people requiring a fast injection of cash into a personal bank account. A no guarantor loan also means that you don’t have to go through the process of finding a suitable person to be a guarantor, someone that agrees to take over payments in the worst-case scenario, and you don’t have to put close personal relationships and friendships to the test.

The application process should always be as straightforward as possible for a no guarantor loan, so do extensive research and find a payday loan company that provides short-term financial assistance in the form of no guarantor loans. With the right choice of firm you can guarantee that your application is processed in minutes, and that you are fully aware of the interest and applicable fees that you are expected to pay, as well as the time in which you have to pay back the loan and any additional fees and interest.