Compare No Guarantor Bad Credit Loans
Compare companies that offer loan products designed specifically for borrowers with bad credit ratings. Compare our range of personal loans from UK lenders, check your eligibility* and get instant personalised quotes without impacting your credit score
- Must be a permanent resident of the UK for at least 12 months (Not IOM or Channel Islands)
- Must be aged 20 or over (at start of the loan)
- Must have a current bank or building society account
- No current bankruptcies, CCJ's, or active IVAs
- Must not be unemployed
- Must be aged 18 years or over
- Must be a UK resident
- Interest rates are dependent on your individual credit score
- Must be a homeowner
- Must be aged 21 or over at the start of the loan
- Must be a UK resident (excluding the Channel Islands and Isle of Man)
- Must have a current bank account or building society account
- Must be in permanent paid employment
- Must not be currently bankrupt or in an IVA or debt management arrangement
- Must be a UK resident
- Must be aged between 18 and 70 (at start of the loan)
- Must have UK Bank Account and Debit Card
- Monthly net income of more than £700
- Must be employed or Self Employed
- Be aged between 18 - 72 (at time of application)
- Must be a UK resident (exlcuding the Channel Islands and Isle of Man)
- Have a net monthly income of £600+
- Must not be unemployed, a full time student or on benefits
- Must not be currently bankrupt or in an IVA
- No CCJs or defaults in last 12 months
- Must live in the UK (excluding the Channel Islands and Isle of Man)
- Must be aged 18 or over at start of loan
- No bankruptcies within last 12 months
- Must have a UK Bank Account and Debit Card
- Can be Tenant or Homeowner
- Must be Employed or Self Employed
- Must be permanent UK Resident for at least 12 months (Not IOM or Channel Islands)
- Must be aged 18 or over (at start of the loan)
- Must have a current Bank or Building Society Account
- No current bankruptcies, CCJ's or IVAs
- Must not be unemployed
If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
Our service is free of charge but we receive commissions from the providers we refer you to. This table is initially ordered by representative APR. You can use the options above the table to order it according to various criteria. You may be offered different rates depending on your personal credit rating.
Our comparison service features a selection of providers from whom we receive commission.
Freedom Finance is a trading style of Freedom Finance Limited who are authorised and regulated by the Financial Conduct Authority. Freedom Finance Limited. Registered Office. Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Registered in England & Wales 06297533. FCA No. 662079. VAT Registration Number 257 0001 44.
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How no-guarantor loans for bad credit work
If you have a poor or bad credit rating but you need to borrow money, one of the options you might be considering is a loan for bad credit with no guarantor. For someone with bad credit, these may be easier to get approval for, though their interest rates are typically higher than average.
Pros and cons of bad credit no-guarantor loans
- As you don’t need another person to cover your loan amount if you’re unable to make repayments, there’s no need to worry about potentially landing someone else with your bill.
- Because the loan agreement is just between you and your provider, your application will be simpler and potentially faster. And this, in turn, may make no-guarantor loans a logical choice for unexpected expenses, when you need money fast – for example, to cover a car breakdown or medical emergency.
- Bad credit loans with no guarantor can come with very high interest rates, often making them a more expensive alternative to other guarantor loans, or secured bad credit loans for borrowers who own a home. You’ll see from our comparison table that the representative APRs are steep.
- As a bad-credit borrower, you might not have a lot of options when it comes to lenders who can meet your requirements.
- Your monthly repayments will be fixed, unlike with credit cards – so if you’re having a tight month, there won’t be any wiggle room. Make sure you’re certain at the outset you can afford these fixed repayments, otherwise missed or late payments will make your credit score worse.
What alternatives are there to no-guarantor loans?
If you have a bad credit rating and you’re considering a no-guarantor loan, it can be helpful to research your other options, in case something else may suit you better. Here are three alternatives to a no-guarantor loan.
Get an arranged overdraft
If it’s a relatively small amount you need – £3,000 or under – an arranged overdraft might be an inexpensive way to borrow, although be aware your application will be subject to a credit check which could be declined - which will have a negative effect on your profile. Unarranged overdrafts, on the other hand (when you go overdrawn without an authorised ‘buffer’ amount) charge very high interest, and also causes damage to your credit profile – so make sure your bank approves yours first.)
» MORE: How overdrafts work
Join a credit union
Credit unions are community organisations that provide a place to borrow and save. Set up and run by members, for members, the people involved usually have something in common, such as living in, or working at, the same place. You’ll have to join the union and perhaps build up some savings with them first, but if you have a bit of time before you need to borrow, a credit union could provide a safe and relatively low-cost alternative to a no-guarantor loan, even with a bad credit rating.
Apply for a government budgeting loan
If you’ve been claiming benefits for six months or more, you may be eligible for a budgeting loan from the government. These loans are interest-free, so you’d only repay the amount borrowed, and these repayments would come from your benefit payments automatically. You would normally have two years to pay back your loan.
How do I get a loan without a guarantor?
When applying for a loan without a guarantor, it makes sense to consider the factors that lenders take into account when deciding whether to approve your application, such as credit score, income, debt-to-income ratio and your employment situation.
Your credit rating tells lenders how reliable you’re likely to be at paying back any money they lend you, so if it’s poor or bad, there may be fewer lenders willing to approve your loan. But by using comparison tables like NerdWallet’s and doing further research, you may still find a lender.
Similarly, your debt-to-income ratio shows how much of your income would go towards repaying debts, so the lower it is, the better. And if you have a steady job and a regular wage or salary, this will also count in your favour.
Should I apply for a loan without a guarantor?
It’s sensible to ask yourself the following questions when deciding whether to apply for a no-guarantor loan:
- Can you afford the repayments on the amount you need to borrow? If the answer is no, reconsider – you don’t want to be trapped in a spiral of debts and repayments.
- What are the terms and conditions of the loan you’re considering? For example, what will happen if you miss a repayment or end up not being able to pay it back at all?
- Will your loan application be accepted? Every time you make an unsuccessful application for credit, it has a negative effect on your credit score. To mitigate this, you could check your eligibility using the buttons above which will provide you with a likelihood of acceptance without leaving a trace on your credit file.
No-Guarantor Bad Credit Loans FAQ
Is it possible to get a loan with bad credit and no guarantor?
It’s probably fair to say that if you have poor or bad credit, looking for lenders for no-guarantor loans may be a little trickier than if your credit score was good. However, with some targeted research into suitable lenders, it may still be possible to find a no-guarantor loan that meets your particular financial requirements.
What does having no guarantor mean?
A guarantor is a person who provides a ‘guarantee’ that something will or will not happen in a given situation. In the case of loans, a guarantor ‘guarantees’ they will pay back the loan they are the guarantor for, if the original borrower cannot find the funds. So if you are the original borrower and you don’t have a guarantor, there is no one else taking responsibility for paying back your loan if you aren’t able to.
Who will lend me money with bad credit?
Some, but not all, lenders may be willing to offer no-guarantor loans despite someone having poor credit. If you manage to make the payments as agreed, a no-guarantor loan taken out despite having poor credit could go towards improving your overall credit history.
You should make sure you’re able to meet payments as agreed with your lender, because failure to repay may incur greater costs and damage your credit rating further. Lack of a guarantor will make you directly responsible for ensuring the loan is paid on time.
What is the easiest loan to get with bad credit?
The easiest loan to get with bad credit will of course depend on your personal financial circumstances, and you’ll be limited by your poor or bad credit rating. It’s important to note that the interest rates on no guarantor loans tend to be high.
Does a bad credit rating matter when getting a no-guarantor loan?
A bad credit rating will matter to some no-guarantor loan providers, but be less important to others, as long as you’re able to show how you’d make your repayments for any sum you borrow. It’s important to research potential lenders – you can do this using NerdWallet’s comparison table – bearing in mind how much you hope to borrow, the interest rate, and the loan term.
Can I get a no-guarantor loan with bad credit if I am unemployed?
Having a steady source of income is a requirement of being granted a loan in general, so being unemployed will lead some lenders to reject your application. However, other lenders may still grant you a loan despite your employment status, as there are other forms of income that will be considered. What most lenders will want to know is whether you have sufficient cash flow to pay the loan back. It is good to fully understand your financial situation before making any kind of agreement over a loan, in order to work out if you can realistically afford the loan to begin with.
What should I do if I miss payments with a no-guarantor loan?
Taking out a no-guarantor loan may offer greater financial independence, but it also takes away the safety net that a guarantor offers through their promise to provide payment in your place. Failing to repay will have a negative impact on your credit score and lessen the likelihood of gaining access to credit in the future. If you are struggling with personal finances and debts, there are a wide range of organisations that can offer free, impartial advice.
» MORE: How to find debt help
What is the difference between a broker and a direct lender?
Think of a broker (sometimes called a finance or credit broker, or for mortgages specifically, an intermediary) as the ‘middleman’ in your loan arrangement. It’s a broker’s job to match you, the applicant, with suitable loans for your financial situation, and to assist you through the application process. Brokers may be able to find you deals that aren’t available in other channels, and they’ll be able to give you expert advice, too.
A direct lender is a lender that loans directly to the applicant, without using a ‘middleman’, or broker, to secure them suitable borrowers.
Can I get a no-guarantor bad credit loan from a direct lender?
This will depend on your individual circumstances, but if you research the market and find a loan and lender that suits your needs, then you may be able to borrow directly from them.
Is a no-guarantor bad credit loan a payday loan?
A payday loan is indeed a type of loan without a guarantor – but the term ‘payday loan’ refers specifically to one type of loan when an amount of money, usually fairly small, is borrowed for a very short term, typically to help the borrower make ends meet until payday, hence the name. There are many other forms of loans which do not require a guarantor.
Are bad credit no-guarantor loans more expensive?
Yes – it’s probably true to say that bad credit loans without a guarantor will tend to come with higher interest rates attached, simply because they are a riskier proposition for the lender.
Hannah has been writing about money since 2013. Formerly a copywriter for Virgin Money, covering credit cards, mortgages, pensions, and more, she now writes on personal finance for NerdWallet UK. Read more