How To Get No Guarantor Loans With Bad Credit

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Are you in a tight spot and need emergency cash, but you have a bad credit score? You’re not the only one. Customers take out almost £1.3 billion in no guarantor loans every year! These short-term loans have become a market of their own, as people of every age bracket use unsecured bad credit loans to pay for unexpected bills. Read on as FamilyMoney explains everything you need to know…

Find out about loans for bad credit with no guarantor here - Family Money

Find out about loans for bad credit with no guarantor here - Family Money

Why are Loans For Bad Credit with No Guarantor in the UK So Popular?

Loans for bad credit with no guarantor are so popular because, as the name suggests, you can apply regardless of your credit history. Additionally, you don’t have the hassle of finding a guarantor to co-sign the loan.

These loans are easy to apply for online and come with high acceptance rates. The loan application usually takes a few minutes to complete. Once you get approved and sign the consumer credit agreement, the money is usually funded into your bank account the same day.

Loans With No Guarantor

A guarantor is somebody willing to take up the responsibility of your loan if you cannot pay due to difficult financial circumstances. These days, not many are willing to take the fall for another person’s financial problems. Therefore loans with no guarantor came onto the market.

No guarantor loans do not require collateral or a guarantor to co-sign the loan. The sole responsibility of the loan falls on to the person taking out the loan. Since there is no guarantor, the interest on these loans will be more, as they are riskier for the lender.

These loans fall under the category of short-term unsecured loans. They are a short term loan, with a maximum of one year to repay the loan amount. Along with a shorter repayment period, these loans can attract higher APRs!

Lenders tend to look past a person’s credit history when approving such loans. Despite the inherent risk associated with such loans, you’ll find multiple options. Make sure to shop around before you settle on a loan.

How Much Can I borrow with a Loan for Bad Credit with No Guarantor UK?

Since a loan without a guarantor is much riskier and does not have collateral for lenders to fall back on, the amount you can borrow isn’t very high. Most lenders offer up to £2,000, but it depends on the credit broker or lender that you apply with.

Many lenders offer first-time customers less than customers that are applying for a second time around. Before applying for a loan, make sure that you have enough disposable income to make the repayments. This will increase your chances of getting approved even with bad credit because it is the primary concern of every lender. If you can’t afford the loan and make a late repayment, it can leave negative marks on your credit report.

Are Loans with No Guarantor More Expensive Than a ‘Regular’ Loan?

If you have a good credit score, you’re likely to pay a lower interest rate since the lender is confident that you can repay your loan. On the other hand, those with bad credit scores face higher APRs. This is reflected in the annual interest rate for the loan with no guarantor.

So, they are technically more expensive than a regular loan. Still, the amount isn’t too much more if you apply with an FCA authorised lender. The FCA has capped the interest a lender can charge to protect the borrower.

A lender that’s regulated by the FCA is less likely to charge customers hidden fees and will be more transparent in the loan process. To get an idea of how much the lender will charge you, look at the representative example they display on their website.

Note: If you can get a guarantor to co-sign your loan you can click here to find out everything you need to know about guarantor loans in the UK and see how much interest you will save yourself.

Is It Possible to Get a Loan for Bad Credit and No Guarantor?

For a long time, it was impossible to get a loan with bad credit and no guarantor. However, lenders have noticed that people with a less than perfect credit score often need most access to money.

In recent years, lenders started offering loans for people with a poor credit score or thin credit file, including; payday loans for bad credit with no guarantor. The market for bad credit loans has become massive. You’ll find many direct lenders offering loans to people with all types of credit scores!

People with a good credit score will find getting a no guarantor loan easier than those with poor credit, and they will pay less interest on the loan overall.

Can I get a Loan for Bad Credit and No Guarantor on Benefits?

Yes, benefits are considered a source of income. As long as you have enough disposable income from your benefits to make the loan repayments and you meet the rest of the eligibility criteria that all lenders in the UK require; be 18 +, hold a UK bank account and be a UK resident, then getting a loan on benefits with no guarantor is possible.

A no guarantor loan is one of the fastest ways to get funding for emergency expenses. - Family Money

A no guarantor loan is one of the fastest ways to get funding for emergency expenses. - Family Money

Advantages of Loans with No Guarantor

Payday loans, with no guarantor, have several advantages;

  • Flexible
  • Compared to other loans, no guarantor loans have more flexible loan repayment terms. Depending on the lender, you can adjust how much of the loan amount you pay month to month.

  • Multiple Uses
  • Bad credit loans with no guarantor can be used for short term emergencies, including; car repairs to consolidate debt or to finance urgent medical expenses. We only recommend that you borrow money for the short term and not alleviate long-term money problems as this can lead your debt to spiral out of control, and late payment could further damage your finances.

  • Convenient
  • You can apply for loans with no guarantor from the comfort of your home with just a click of a button. The application form should take a few minutes to complete, and you will get your loan decision within the hour. These loans are straightforward and save you the hassle of searching for a guarantor.

  • Safe
  • As long as you borrow from an FCA authorised direct lender, your loans are safe and secure. Check if their FCA reference number is listed on their website and on the Financial Services Register. If it isn’t, they’re not a lender you want to borrow from.

Is It Right for Me?

No guarantor loans are designed for people with a poor credit rating who don’t want to burden another person. They also work for people who can’t find a guarantor when applying for a loan.

In the past, not having a guarantor and a bad credit score was a red flag for lenders. It was unheard of for lenders to give out loans without a guarantor. But, the market of unsecured loans has changed, making quick loans with no guarantor more readily available in the UK.

However, non-guarantor loans come with the implicit knowledge that repayment is crucial. Since you are the only one liable to repay the loan, it further depreciates your credit score if you miss out or make a late repayment.


A no guarantor loan for bad credit can help tide you over when life throws you surprise expenses and help you get back on your feet financially. However, getting a loan should only be done to finance short term emergencies. If you are suffering from long term money problems, you can seek free financial advice from the following organisations; Stepchange, Moneyhelper and Citizens Advice. You can find beneficial information about debt support charities and organisations here.

Frequently Asked Questions

What is a Bad Credit Score?
A bad credit score is a direct result of a negative assessment of your borrowing history. Your borrowing history gets assessed and filed by the Credit Reference Agencies in the UK.
Credit history refers to how regular you’ve been with repaying borrowed money – think of credit card bills as an example.
A bad credit score can severely limit your financial options, so make sure to take every opportunity to repair and build your credit score.
Will Taking out a Loan with No Guarantor Affect My Credit score?
Every credit application usually leaves a credit footprint on your credit file, so only apply for a loan when it’s essential. However, take out a loan and make the monthly repayments on time. This can improve your credit score as it gives you a positive history of borrowing responsibly and shows that you are a reliable borrower.
Can I Get a No Guarantor Loan Without a Credit Check?
No, you cannot get loans with no guarantor without a credit check. The FCA require all the lenders to perform credit checks to protect the borrowers’ financial safety.

Initially, lenders will perform a soft credit check that does not leave a mark on your credit file. It is to assess whether you are eligible for the loan. However, once a loan offer has been made, and you have accepted it, reliable direct lenders are required to conduct a full credit check and conduct an affordability assessment.

If a direct lender claims they can process and offer you a no guarantor loan without credit checks, they are probably not affiliated with the Financial Conduct Authority and do not have your safety in mind. Always check that the lender has an FCA reference number on their website and listed on the financial services register before applying for a loan.

Are No Guarantor Loans Legal in the UK?
Yes, the FCA has capped the interest and default fees that lenders can charge on short-term loans. You can always check the representative example on the lenders’ website to get an idea of how much interest they are charging and compare loan options.