Bad credit is an unavoidable situation for many. If you consider that you are the only one that is suffering the bane of bad credit history, you might be surprised to know how many others have fallen into a credit trap. The situation becomes especially dire when along with bad credit, you have debts to pay off or have emergencies coming up that need a bit of money. Are there ways to get a loan then? Well yes, we can say searching online for loans for bad credit UK no guarantor is a great help. Read on further to know a brief about the options available to you.
Having bad credit limits access to overdrafts, credit cards and loans. Even then, some firms provide loans in such situations. Some of these firms don’t even need a credit check before approval. When you are already under a lot of debt, taking another loan seems very imprudent. But there are situations where a loan can be of great help if you are facing a bad credit scenario.
One such situation is – Debt consolidation. Debt consolidation simply means paying off outstanding debt in a healthy and regulated way. Regular and timely payments, albeit of small amounts can help boost your credit score gradually. Credit card charges are the biggest culprit when it comes to high debts. Urgent medical expenses, emergency repairs and renovations, are other ways where debt can steadily build up and before you know it, the situation becomes unmanageable. Being unemployed can also rack up debt.
In these cases, a loan can ease problems quite a bit. But in the face of bad credit, banks will typically require you to get a guarantor if you need a loan from them. Depending on how badly you are in debt, there will rarely be anyone who would be willing to help you out by becoming a guarantor.
Still, if you don’t have a guarantor and have a bad credit score, there are firms that can help. A great way to opt for in this situation is to go for a guaranteed loan. There are multiple benefits of guaranteed loans –
- Gradually boost your credit score
- Easy approvals
- No need of a guarantor
- Credit checks are less or non-existent
- Easier repayments
- Collateral-free options
You might be wondering that something this good cannot possibly exist. If it does, there must be some hidden agenda. To be clear, guaranteed loans typically deal with lesser amounts of money. Consequently, the build-up of interest is not as extreme compared to other loans. Gradually paying off the smaller EMIs of such loans also improves your credit score.
Then there are options like personal loans, short-term loans and payday loans. These variants are offered under guaranteed loans. Typically, the largest sum of money possible under a guaranteed loan can be through a personal loan. In case you have a very large debt from a single source or overbearing credit card balances, a personal loan can come in handy. Emergency expenses or medical emergencies can be dealt with by taking a short-term loan. If the need is very minimal and can be balanced with your next payslip, a payday loan would be ideal. Guaranteed loans can have repayment terms from 2 months right up to 36 months.