Apply Now
  • August 25, 2020
  • Leo

Are you confronting unforeseen financial strain? Why worry when many easy loans are there and that are just fantastic and could be a good alternative for you!

For instance, you can have loans without a guarantor from a direct lender.

A loan with no guarantor means you are entirely responsible for the loan you are solely taking to address the financial issues. Many borrowers are opting for this choice at the point of getting a loan. It also needs to be borne in mind that such loans need to be settled in the ephemeral period as per terms negotiated with direct lenders.

Simply put, that means you can contact a lender and borrow money from him at a specific rate of interest even though you don’t have anything to pledge or invest.

Like all other kinds of loans, you can owe and start paying back a certain sum of money for an agreed time frame.

You can apply for both long term and short-term loans without any guarantor. Let us highlight a few advantages and disadvantages of such loans:

Advantages

  • Useful for both Tenants and Homeowners:

The most significant breakthrough of such unsecured loans is the reality that they permit everyone to borrow money. Irrespective of you are a tenant or a landlord, you can take funds without placing any guarantees or collateral.

  • Zero risk to bear

These loans are the ideal choice for those who do not have reliable people to back them and do not want to reveal their financial condition to anyone.

  • Swift Completion

Since there is no guarantor or other security to check, and because loans are typically in moderate amounts, completion of the loan is much faster than secured loans. In some instances, you may receive the money on the same day once it gets approved.

  • Easy Repayments

It boosts your eligibility for loans and lowers the risk of default repayment as your cumulative income goes up. Provide appropriate records to your chosen financial institution to demonstrate that you have enough earnings to repay a loan from a direct lender without a guarantor.

Disadvantages

  • High-Interest Rates

Since no guarantor loans are only guaranteed by faith, they are much more of a liability to the lender. The greater the risk, the higher the borrowing costs. Low credit borrowers will experience high-interest rates on loan, but if you have a good credit history, that won’t be a concern for you.

  • Confined Loan Amount

If you need a huge sum of money to borrow, a small loan like this is not the option. These loans are offered in low amounts. Generally, you can only borrow up to £10000.

  • Less Flexibility

If you take out an unsecured loan, you have to repay it in instalments over a defined period at a pre-agreed rate. For instance, you will not be allowed to change the stipulated instalment of 1000 a month for 5years to a lower rate or but if you plan to pay off the loan sooner, you will be faced with an early repayment fee.

  • Difficult bank approval

There may be some hurdles in obtaining approval from the bank. Albeit, one can choose to get fast approval via online access portals, particularly from the direct lenders like OneClickLoans.

  • Muddling abrupt circumstances

Sometimes the bizarre situations can hit you hard. In such scenarios, no guarantor loans for the short term will help you cover expenses like:

  • Vehicle maintenance, services.
  • House repairs expenses such as boiler replacements, washing machines, air conditioners, and so forth.
  • Sudden expenses like insurance premiums or health care costs.

  • Prolong repayments-spread

Additionally, you might need to borrow a greater sum over a prolonged period and spread repayments. This will help to recoup the cost of:

  • A new vehicle
  • A wedding or family vacation
  • Larger infrastructure enhancements

Leave a comment

Your e-mail address will not be published. Required fields are marked *