No Guarantor Loans
Bad Credit Accepted

If you’re thinking about searching for a loan, you may feel confused by some of the jargon that can pop up.
For example, you might find yourself asking, ‘what’s the difference between a guarantor loan and a no-guarantor loan?’ or ‘can I get a no-guarantor loan with bad credit?’.

Cashflex has broken down some of the jargon surrounding no-guarantor loans and shared the answers to some frequently asked questions.

What’s the difference between a guarantor loan and a no-guarantor loan?

A guarantor loan is a sum of money borrowed from a lender, which is lent to you alongside a responsible person of your choice, known as a guarantor. If you were to experience difficulties in repaying your loan, your guarantor would step in and cover the cost of the repayments for you.

You should choose your guarantor carefully; ideally, this should be someone with whom you share a trusted relationship, such as a family member or close friend. While criteria will vary between lenders, your guarantor will typically need to be over the age of 21; be a UK resident with a UK bank account and valid debit card; be in employment; and have good credit history.

It’s important that both you and the nominated guarantor understand the potential risks involved.

As the name suggests, a no-guarantor loan is a type of loan that doesn’t require you to nominate a guarantor. Subject to successful affordability checks, the lender will approve your application to borrow credit, with the expectation that you, and you alone, will be responsible for repaying the money owed.

Can I search for a no-guarantor loan with Cashflex?

Please be aware that Cashflex do not work with any lenders who offer guarantor loans at present.

You are, of course, welcome to check your eligibility for a non-guarantor loan.

You can use Cashflex to search for a loan if you:

• Are over the age of 18;
• Are a UK resident;
• Have a UK bank account and valid debit card; and
• Have a regular source of income paid into your bank account.

Could I get a no-guarantor loan with bad credit?

Several of the lenders on the Cashflex panel specialise in loans for people with bad credit, and could be willing to consider your application without needing a guarantor.

If you’re matched with a loan through Cashflex and you choose to make a full application, the lender will run a series of checks to make sure that any loan offered is affordable for you.*

Please be aware that a bad credit loan could come with a higher interest rate. Having bad credit history could also prevent you from being approved to borrow the full amount of money that you need.

How much money could I search for?

With Cashflex, you could search for a loan between £100 and £10,000.
Depending on the amount of money that you apply to borrow, you could repay your loan across a term from 3 to 60 months.

How to get a loan without a guarantor

Having a good credit score could increase your chances of getting approved for a no-guarantor loan, although you should bear in mind that approval will depend on the outcome of the lender’s affordability checks.
Affordability checks will take various factors into consideration; not just your credit score. Even with an ‘excellent’ credit score, no loan can be considered as ‘guaranteed’ or ‘easy to get.’

If your credit score is a little on the lower side and your need for money isn’t urgent, you might choose to work towards a healthier credit position before you apply.

Could improving my credit score increase my chances of getting a no-guarantor loan?

As we’ve talked about in the section above, working on your credit score could improve your chances of being approved for a no-guarantor loan.
You can begin your journey towards a healthier credit position today.

• Register to vote.
• Check your credit report for errors.
• Pay your bills and any existing credit commitments on time.
• Where possible, keep your credit applications to a minimum.*

If you have a credit card…

• Try to refrain from using it to withdraw money from a cash machine.
• Stay well within your credit limit. Your credit limit is the total available amount of money that you could spend on your credit card.
• Keep your credit card utilisation as low as possible; this is the amount of money you are using of your overall credit limit.
• If building up your credit score is your main goal, you may wish to do some research into credit builder credit cards.

*When you apply for credit directly with a lender, they will carry out an affordability check, which will consist of either a hard search or Open Banking. Multiple hard searches within a short period of time could have a negative impact on your credit score. The free Cashflex FastCheck tool will reveal your chances of approval before you apply and could help to protect your credit score from multiple hard searches.

What happens if I can no longer afford my no-guarantor loan?

When you take out a loan without a guarantor, you are solely responsible for making your monthly repayments. If you’re no longer able to afford these, you should contact your lender.
They will be able to talk you through any options that may be available to help with your finances during this tough time.

I’m struggling with money; where can I get help?

Free money and debt management advice can be found on sites such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.