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Loans without a guarantor

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Key points

  • The term ‘loans without a guarantor’ tends to mean loans for people with poor credit history and no guarantor
  • Payday loans are a type of loan without guarantor
  • High APRs and charges are a common feature

Most loans are loans without a guarantor surely? Well yes and no. We’ll investigate these particular types of loans and what to look out for… and don’t call me Shirley. 

What are loans without guarantors? 

Before we talk about loans without a guarantor, we think it's wise to chat about what a guarantor is. A guarantor is someone who'll keep up the payments if you can't make them. 

So strictly speaking, most loans are loans without a guarantor. Loans from a bank, building society or other lenders will just be between you and them.  

Yet it seems loans without a guarantor has mutated in meaning. It now refers to loans for people with poor or bad credit who don’t have a guarantor. 

So is a loan without a guarantor a payday loan? 

Again, yes and no. Payday loans are a type of loan without a guarantor, but it’s not the only example. Remember that payday loans have a reputation for a reason, so look for other options which will help you stay out of debt that can spiral out of control quickly. 


Other types of no-guarantor loans include: 

What loans without guarantors do have in common with payday loans is how they can be marketed at people with poor credit. As such, they can come with high APRs and can be extremely expensive in the long run. Explore all other options available before thinking about such a loan. 

Loans without guarantors - why might you need to take one out? 

Lenders that offer loans without a credit check or a guarantor tend to suggest it’s because you can't find someone to be your guarantor. 

There’s also the pressure it puts on a guarantor. It’s a big commitment, as they’ll have to pay if you can’t. A guarantor is also putting their credit history on the line. 

See also:

  • How to cut the cost of debt
  • Short-term loans

Perhaps you don’t know someone you can ask that has a good credit score? Even if you do, it can be hassle to get their details when you come to apply. There’s all sorts of reasons people apply for a non-guarantor loan.

It may seem simpler to apply of a loan without a guarantor, but you shouldn't rush into a decision. If you're struggling with debt, you have options. Think about speaking with the people that you owe money to. They won't want you defaulting on your debt and could offer you a new plan. You might also want to contact National Debtline, the Citizens Advice Bureau, Money Advice Service, or Turn2us.

Should I apply for loans without a guarantor? 

Ask yourself these four questions: 

  • Can I afford the repayments on a no-guarantor loan each month? 
  • What are the terms and conditions of the loan? 
  • How much money do I need to borrow? 
  • Do I really need this loan? Is there another way to access the money I need?

Approach cautiously and weigh up your options before taking out a loan without a guarantor. This is not a decision to be taken lightly. 

Know your credit score and do a smart search to see which loans you’re more likely to be accepted for. This can save you from applying, being rejected, and damaging your credit report. 

By Sam Easterbrook