Do I Need A Guarantor To Get A Payday Loan?
Access your money right away with no-guarantor payday loans. Deal with your personal financial problems without hassle.
Loans Without a Guarantor
Time is of the essence during a cash emergency. You may find it hard to borrow with bad credit, so you opt to find a guarantor, but that takes time. You may not have the luxury to go looking around for a kind relative or friend to help you on such short notice.
Your kind-hearted relative or friend might not be enough. They may not even qualify to co-sign, even after they agree. Uptight and strict credit checks may refuse your guarantor – this can further upend your application for a much-needed loan.
If you are in such a familiar situation, you are best off getting a loan that does not need a guarantor. Avoid the complexities of finding a guarantor only to face rejections for lenders. Ensure that you can take care of yourself and your loved ones at once during times of dire need.
What is a Non-Guarantor Loan?
A non-guarantor loan is a small, short-term loan that does not need a guarantor. Non-guarantor loans are ideal for borrowers who need cash as soon as possible.
Non-guarantor loans only ask for the personal details of the borrower. Thus, only the borrower will be responsible for the loan, no one else.
Non-guarantor loans come in all shapes and sizes. Some may need alternative loan security; they may need a good credit score or property collateral like your car or house. Some non-guarantor loans may not need to be secured; however, these only allow smaller amounts in comparison.
What Are The Advantages of Loans Without a Guarantor?
Loans without a guarantor provide the following advantages:
1. No Burden
Guaranteeing a loan, no matter how small, is no small favor. Not everyone is comfortable sharing financial responsibility with other people. Mere asking may be a burden to you as much as it is uncomfortable. Non-guarantor loans save you from the mini-heart attacks of asking.
Non-guarantor loans allow you to keep things to yourself. No one needs to know your business, crisis or not.
3. No Risk of Burning Bridges
Making a relative or friend a guarantor takes a toll on your relationship with them. Like it or not, you are bound for better or worse. In the worst scenario, you may lose a well-earned trust and friendship.
4. Faster Access
Getting a guarantor takes time and resources. To ask, you may need to travel miles to get to your potential guarantor. Then, it will still take time to get approval from your lender. If your guarantor’s application fails the credit check, you will need to spend even more time on Plan B.
This cycle may not be work for some people, including you. Your medical bills may be piling up, you may be in danger of losing your house, or worse. Non-guarantor loans do not pose such challenges. Not needing a guarantor to get a loan makes the loan process easier.
What Are a Disadvantage?
Higher Interest Rates
A non-guarantor loan is an unsecured loan. Such loans are high-risk for lenders. In the unfortunate case that you fail to meet your loan repayments, there is no collateral or guarantor to act as your backup – this is the reason for the high interest rates for non-guarantor loans.
Banks and other traditional financial institutions will never go near unsecured loans. Lenders deserve compensation for the high risk they take on these types of loans.
How to Get a Payday Loan with No Guarantor
Here are the requirements and processes to get a payday loan with no guarantor.
1. Pass Identity and Fraud Check
To get a payday loan without a guarantor, you must prove to lenders that you are who you claim you are. You will need to be the following:
- At least 18 years old.
- Have at least one (1) valid government-issued ID.
- Have a valid bank or checking account.
- Have a residential address.
- Have an active and valid phone number and email address.
2. Stable Income and Employment
You are responsible for repaying your loan. You have to have a regular job or have another source of stable income. You must provide proof of a steady source of income.
Should I Apply for Loans Without a Guarantor?
All financial decisions need to be well-thought-out. Bear in mind that your choices today will affect your financial future. Consider all the facts to make the best decisions.
Is a Loan Without a Guarantor a Payday Loan?
A payday loan is a type of non-guarantor loan. One of the primary features of a payday loan is fast cash with a direct deposit within 24-48 hours. The requirements are easy to comply with, but the loan amounts are small.
Is it More Expensive to Get a Payday Loan with No Guarantor?
Getting a payday loan without a guarantor is high-risk and comes with a higher interest rate. A higher interest rate can lead to higher fees on top of the original loan amount.
Do I Need this Loan? Is There Another Way to Access the Money I Need?
Ask yourself, how much do I need this loan? What will I use it for, and how urgently do I need it?
Non-guarantor payday loans may be fast, but they can be more expensive than other loans. Think about whether your main goal is to get money now or pay as little interest as possible.
Non-guarantor loans are ideal if your primary goal is to get money as soon as possible. Otherwise, you may want to consider other types of loans with lower interest rates.
How Much Money Do I Need to Borrow?
Non-guarantor payday loans only allow the loans of small sums of money. They are for cash emergencies only, not for big spending. So, if you need a large amount, non-guarantor payday loans may not be the best option for you.
Can I Afford the Repayments on a No-Guarantor Noan Each Month?
Every no-guarantor loan is unique. No loan has the same terms and conditions. Carefully review all the details of every loan option available to make sure that you can pay them. Borrow only as much as you can afford to pay and avoid problems with repayments.
What Are The Terms and Conditions of the Loan?
The terms and conditions vary from lender to lender – no two are the same. Law requires no-guarantor payday loans to disclose all necessary loan information to borrowers. It is your responsibility to review them and make sure you fully agree.
Amanda is a senior financial copywriter at AdvanceSOS. Amanda has been writing about finance since 2015. She graduated with a Master’s in finance from the University of Oklahoma. As a result, she has a wealth of experience and knowledge to share with her readers.