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Loans without a guarantor

Compare loans that don't ask for a guarantor[1]

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What is a non-guarantor loan?

It’s a loan where you don't need to find someone who'll keep up the repayments if you can't make them. So most loans are loans without a guarantor – where it’s just between you and your lender.

But non-guarantor loans are generally aimed at people with poor or bad credit who don’t have a guarantor.

What are the advantages of loans without guarantor?

  • You don’t need to find a guarantor and there’s no burden on someone else to potentially repay your debt
  • You might be able to access funds faster, as it’s just between you and your lender
  • They can be more practical for emergency expenses, like a boiler on the brink, car repairs or a medical bill

What are the disadvantages?

  • They can be expensive – non-guarantor loans usually have high interest rates
  • If you have bad credit, your non-guarantor loan options might be limited

Is a loan without a guarantor a payday loan?

Payday loans are a type of loan without a guarantor. Make sure you understand the interest rate and repayment terms.

But even though they aren't marketed as 'non-guarantor loans' there are plenty of other types of finance that don't need you to have a guarantor:

  • Personal (or unsecured) loans 
  • Peer-to-peer loans 
  • Logbook loans 

Is it more expensive to get a loan with no guarantor?

The interest can be high on loans that are marketed as non-guarantor loans, which makes them expensive in the long run. 

What works best for you will depend on your circumstances, so it’s worth exploring other options too before committing. 

How to get a loan with no guarantor

Look after your finances and you're less likely to need a guarantor for a loan, or to be limited to expensive finance that's marketed as 'non-guarantor loans'.

  1. A good credit score

    A good credit rating shows lenders that you’re reliable when it comes to paying back debt

  2. A low debt-to-income ratio

    Debt-to-income ratio is the amount of your wages that you use to pay off your debts. So a lower ratio will give you a better chance of being accepted for loans

  3. Stable income and employment

    Proving you have a regular income reassures lenders that you’ll be able to afford the loan repayments

Having all the above still doesn’t mean you’re guaranteed to be accepted for a loan. It’s up to the lender to decide. 

Should I apply for loans without a guarantor?

Before applying for any loan, ask yourself these four questions: 

  1. Do I really need this loan? Is there another way to access the money I need?

    Think about whether a loan is the best thing for your circumstances. There might be another way – for example, waiting until you’ve saved up the money, or asking a friend or family member for help.

    If you’re not sure what to do, you can get free financial advice from your local Citizens Advice Bureau, National Debtline or StepChange debt charity.

  2. How much money do I need to borrow?

    If you decide on taking out a loan, you’ll need to figure out how much you want to borrow.

    Lenders will also want to know what you plan to use the loan for, like home improvements, funding a wedding or to buy a new car.

    There might be exclusions as to how you use the money. Some lenders won’t allow you to use a loan for a house deposit, for example. It’s always best to be honest about your intentions.

  3. Can I afford the repayments on a no-guarantor loan each month?

    Consider how much of your monthly income is left, after you’ve paid your usual expenses and bills. Set aside a little extra money for savings or to use as emergency funds – like for unexpected vehicle or home repairs.

    Think about whether what’s left of your income would be enough to make loan repayments.

  4. What are the terms and conditions of the loan?

    Read the terms to find out things like the repayment amount, interest, what happens if you can’t pay it back and if there are any additional fees.

    You can do a soft search to check for non-guarantor loans you might be eligible for without impacting your credit score, You’ll be able to read the terms then.

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[1]Gocompare.com introduces customers to Runpath Regulated Services, which is authorised and regulated by the Financial Conduct Authority. Gocompare.com’s relationship with Runpath Regulated Services is limited to that of a business partnership, no common ownership or control rights exist between us. Please note, we cannot be held responsible for the content of external websites and by using the links stated to access these separate websites you will be subject to the terms of use applying to those sites