No Guarantor Loans for People with Bad Credit

Do you need a bad credit loan but don’t have a guarantor? You might be surprised to know that you could be eligible for a loan without one, depending on your circumstances.

What are no guarantor loans?

With a guarantor loan, someone else agrees to cover any monthly repayment you're due to make if you're not able to do so. No-guarantor loans are the opposite – you’re applying by yourself and are solely liable for the repayments.

Borrowers may choose to apply for a guarantor loan because they're concerned that their bad credit rating means that lenders will be likely to decline the loan request; however, this may not necessarily be the case. There are lenders who are willing to consider applications from people with poor credit history and no guarantor.

Possible advantages and disadvantages of no-guarantor bad credit loans

Can I get a no-guarantor payday loan?

A no-guarantor loan could be either a payday or a short-term loan.

Little Loans is a credit broker, working with a panel of over 30 responsible lenders. Please be aware that none of the lenders on our panel offer guarantor or payday loans.
The lenders we work with provide short-term, personal, no-guarantor loans between £100 and £10,000, which can be repaid between 3 to 60 months, depending on the amount of money you apply to borrow.

Can I get a bad credit loan without a guarantor?

You might be able to get a bad credit no-guarantor loan, depending on your circumstances. While there are lenders who need a guarantor before they’ll consider your application for finance, others do not.

Some of the lenders on the Little Loans panel specialise in loans for people with bad credit without the need to apply with a guarantor.

Again, you should bear in mind that a bad credit loan, either with or without a guarantor, could come with a higher rate of interest, and you might have to apply for a lower amount of money than you need.

What if you default on a guarantor loan?

Without a guarantor, you alone have full responsibility when it comes to paying back the money borrowed. If your financial circumstances change and you find that you’re unable to repay your loan or worry that you might default on a repayment, you should contact your lender as soon as possible. They will be able to talk you through any options that could be available to reduce some of the pressure.

Defaulting can severely damage your credit score and the ability to borrow money or obtain credit of any sort in the future.

As well as harming your credit score, your lender may charge you a fee if you make a late repayment or miss one altogether. You can find out more about additional fees and charges in your terms and conditions.

What can I use the money for?

If, after thorough research, you decide to apply for a no-guarantor bad credit loan, you could use the money to cover an unexpected cost. This could include urgent car or home repairs, or an essential household item replacement.

Remember, a loan is a serious financial commitment and should only ever be applied for after careful consideration. It’s important to be mindful of responsible spending.

Can I get a bad credit no-guarantor loan without a credit check?

No. A reputable lender will not offer a loan of any type without a creditworthiness assessment.

Guidelines set by the Financial Conduct Authority (FCA) require all authorised and regulated lenders in the UK to complete a creditworthiness assessment on anybody who applies for a loan. This will include either a hard search or Open Banking. Please be aware that a hard search will remain on your credit file for up to 12 months. Undergoing multiple hard searches within a short space of time could harm your credit score.

With your consent, Open Banking allows the authorised lender of your choice to view your recent financial activity via your online banking account. Authorised third parties access your account with a read-only view, and you can withdraw your consent at any time.

Is it safe to apply for a bad credit no-guarantor loan?

A bad credit no-guarantor loan is safe as long as you apply to a lender or a credit broker who is authorised and regulated by the FCA. You can check to see whether a company appears on the FCA register here.

Companies or individuals who do not appear on the FCA register are unlikely to be operating in line with FCA guidelines, which means that you will not be protected if something goes wrong. Be wary of companies who try to lure you in by claiming to offer ‘guaranteed’ and ‘no credit check’ loans.

For your peace of mind, please know that Little Loans, and all the lenders we work with, is authorised and regulated by the FCA. Little Loans will never charge a fee for using our service and we’ll never contact you to ask for a payment.

If somebody alleging to be a lender or credit broker contacts you out of the blue to offer you a loan or requests an upfront payment, you should be very cautious, as this could be a scam.

Borrowing responsibly

Please only consider searching for a loan if you are certain that you can comfortably meet all the monthly repayments in full and on time. Concerned about debt? You may benefit from contacting one of the following organisations: StepChange, MoneyHelper, Citizens Advice, and National Debtline.