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A wise guide to…

Getting a loan without a Guarantor

No guarantor loans provide people who are not in a situation to secure a loan with a guarantor an option to borrow money. If you have bad credit and can’t find a guarantor, don’t panic. Although you may have to pay a little extra, you do have options. Use Choose Wisely’s loan search to find out which lenders will accept your application before you apply

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Representative 69.9% APR (variable). Representative Example: If you borrow £1,500.00 over 24 month at a Representative rate of 69.9% APR and an annual interest rate of 54.19% (fixed), you would pay 23 monthly repayments of £103.64 and a final payment of £103.74. The total charge for credit will be £987.46 and the total amount payable will be £2,487.46.
Choose Wisely is a trading style of Choose Wisely Limited and is a free to use price comparison website. Choose Wisely Limited is authorised and regulated by the Financial Conduct Authority as a credit broker not a lender, firm reference number 730574 and is registered with the Information Commissioner’s Office number Z3106681.

A quick, easy way to get a no guarantor loan today.

  • Borrow from £300 to £10000.

  • Choose between lenders who have accepted your application.

  • Absolutely no fees, ever.

Representative 69.9% APR (variable).

How to get a no guarantor loan in 3 simple steps.

Affordability assessment.

1 form - takes 2 minutes to complete and your data is 100% secure.

Compare products.

Choose from lenders that have accepted your application.

Speedy finance.

If approved, the cash can be in your account in as little as 15 minutes.[†]

Table of contents

Written by Andrew Freelander
Read time: ~5 mins
Published: 20th September 2017 Updated: 9th September 2020

What is a no guarantor loan?

Over the last 10 years, the UK has seen an increase in the number of guarantor loans taken out. Guarantor loans are loans that require a second person 'the guarantor' to co-sign the loan agreement. This person - often a friend or family member - agrees to take the responsibility of repaying the loan, in case you cannot repay the loan yourself due to a change in circumstances.

Not everyone will be able to find a person willing and able to be their guarantor on a loan. That’s why if you have bad credit and cannot find a guarantor, ‘no guarantor loans’ can be a good solution if you need to borrow money.

Technically speaking, there are a lot of loan types out there that are ‘no guarantor loans’. Because you can take them out without a second person having to co-sign the agreement. For example, a personal loan from a building society, bank or direct lender are technically no guarantor loans. However, over time the term has been used to refer more directly to loans for people who don’t have a guarantor and also have bad credit.

This type of loan frequently involves less administration and paperwork than if you were to take a loan with a guarantor. Because you don’t need to ask someone to be your guarantor, the process is simpler and you can move through the application steps faster.

One key drawback of loans without a guarantor that you should be aware of, is that interest rates and the costs of these loans are often higher. Lenders believe offering loans to people with bad credit without a guarantor is riskier. If a borrower can’t make a future repayment, a guarantor has agreed to pay for them. Essentially, this adds another layer of safety on the lender’s money. If a person does have poor credit, rates are often higher for no guarantor loans because it doesn’t have the backup payee. Additionally, no guarantor loans can sometimes be more difficult to get approved for, particularly if your credit history had some issues in the past.

Can you get a loan without a guarantor?

Yes, it is absolutely possible to get a loan without a guarantor as long as you pass affordability checks and have all necessary documents to apply.

There are many people who have difficulties finding a guarantor. Because of this, there are alternatives available. However, if in your search you are only being presented with guarantor products then it’s likely to be one of the best ways to get credit in your situation.

It’s always worth revisiting whether there is somebody you trust, like a family member or a friend, who is willing to be your guarantor. It might be an awkward conversation to have, but finding someone who is willing to help you will reduce the cost of the loan significantly, as lenders are willing to charge lower interest rates than with other types of short-term loans.

What products do not require a guarantor?

It is important to remember that products that don’t require a guarantor can be more expensive.

Some examples of loans that require no guarantors are:

  • Credit Line or Overdraft Loans
  • Peer to Peer loans
  • Short-term Loans
  • Specific Bad credit lenders
  • Personal (unsecured) loans

What are the best no guarantor loans?

There is no such thing as a single “best” no guarantor loan. The best loan is the one that best fits a person’s individual circumstances and personal needs. The Choose Wisely loan search can help borrowers understand which lenders accept their application in principle, meaning it’s easier to compare prices and find the one best suited to your situation.

What are the alternatives to loans for bad credit and no guarantor?

Depending on the amount you need to borrow, there are a few options. Alongside the products outlined in the previous two sections, there are credit line products and more traditional bank account overdrafts. Both of these provide a set borrowing limit that money can be taken from at any time. The amount of cash you can use depends on your credit or overdraft limit, which is agreed beforehand between the lender and yourself. You can repay the overdraft you used in multiple transactions, but if it’s part of your bank account it will most often be paid back in full when you have enough money coming in. It is called recurring credit. A benefit with this form of loan is if you don’t use these funds, you don’t pay for them.

Another option you have are budgeting loans. Depending on your situation, these loans can be used in an emergency to help cover a number of unexpected costs and household expenses.

If you need to borrow a larger amount and you have a mortgage, there is the option of remortgaging to free up more cash. The rates on mortgages are generally lower than on both secured and unsecured loans. For homeowners who don’t want to remortgage, there is the option of a secured loan as well. A secured loan gives a lender more security because a borrower puts an asset down as collateral, like a house or car. If the borrower can’t pay back the loan, these assets are handed over to the lender.

Will I be approved for a bad credit loan with no guarantor?

More and more, lenders are providing unsecured loans that are designed exactly for people with very bad credit, who do not have a guarantor.

There are now a number of lenders in the market that offer no guarantor loans, which has created a competitive market that gives the borrower options to choose from. To find out which lenders would accept your application fill in the Choose Wisely application form by clicking here. After a short application process, we will show you a list of the lenders that match your criteria. You can choose the one that best suits your circumstances and then apply directly with them.

But before you decide to go ahead with a new loan, it is a good idea to ask yourself these questions:

  • Will I be able to afford the extra outgoings every month of paying this back?
  • Do I know what all the terms and conditions are?
  • How much money do I really need to borrow?
  • Is this loan absolutely essential? Can I find this money any other way?

Are there loans for people with bad credit, no guarantor and on benefits?

If you receive a minimal income or claim disability or sickness benefits, it can be difficult to get a loan from a high street lender. The simplest way to establish if you can qualify for a loan with benefits is to fill in an application with us and we will determine the lenders that could accept your loan request.

How do you get a fast loan with no guarantor?

How quickly you can get your loan depends on a few factors, including how fast the lenders are and how quickly you can provide any documents they require, so try to prepare these ahead of time. You will be asked to submit:

  • Personal details
  • Contact details
  • Employment details
  • Financial details
  • Documents to prove your identity

Often, a borrower will have to answer questions about themself and their plans for the money they are looking to borrow. They will then be put through a credit check and the lender will formally assess the amount of risk there is on the loan requested. Borrowers generally must meet the following criteria:

  • At least 18 years old
  • You are a permanent UK resident, with a proof of address.
  • You have a regularly income
  • You are not bankrupt, or have filed for bankruptcy.

Can You Get an Instant Decision on No Fee, No Guarantor Bad Credit Loans?

If your loan application gets accepted by a lender, the money can be in your account in a short amount of time. The speed at which a customer receives the cash in their bank account depends on how fast the application is completed, the turnaround time of the lender and the individual bank. It could be as quick as the next working day, or as long as a few weeks.

Remember that some lenders will charge fees separately from the interest amount, so make sure to keep an eye out for them. The Choose Wisely loan search service is free to use and won’t charge you with any hidden fees.

How much do no guarantor loans cost?

Lenders are businesses at the end of the day, and they make money on the loans they give out. Because of this, a borrower will have to pay back interest on top of the original loan amount. With a no credit guarantor loan, the amount you are required to pay can vary a lot between lenders, this is why it’s important to consider your options carefully. A lender is required to tell you how much the loan will cost once you tell them how much you want to borrow.

One of the biggest factors in determining the cost of your loan and the APR (annual percentage rate) is the amount of risk the loan poses and the type of loan you take out. This is why people with bad credit often have to pay a higher interest rate. Based on a borrower’s past, lenders believe they are more likely to not pay back the loan in the agreed period, and are a higher risk to getting their money back.

Loans with guarantors add an additional amount of safety for the lender, which is why they often get a lower interest rate. That being said, there is a range of prices that different lenders will offer you, making a real difference to the amount you have to pay back. Complete our loan search via the ‘get accepted’ button to find the deal that best suits your circumstances.

We only work with lenders that are authorised by the Financial Conduct Authority, meaning the lenders will have to adhere to strict rules, all designed to treat customers fairly. Because of this, there will not be any hidden fees or costs.

Can I get a loan with bad credit and no guarantor?

It is possible to get a loan with bad credit and no guarantor. While credit history is an important factor in the process, there are lenders that keep in mind a person’s current financial situation next to a credit score. These bad credit lenders will consider a person’s employment status, monthly income and spending behavior, and their ability to pay back the loan within the repayment period.

It can be extremely difficult to find the correct loan for your circumstances, particularly if you don’t have a guarantor or have bad credit. The option of a no guarantor loan can be the solution to some emergency situations and help people get out of a difficult financial period. If you want to take control of your finances and free yourself up for the future, start the Choose Wisely ‘Get Accepted’ application now and compare no guarantor lenders for amounts between £300 - £1500.

No Guarantor Loan FAQs

Can you get an Amigo loan without a guarantor?

No. Amigo Loans is strictly a guarantor lender so in order to get a loan with them you’ll need to find a guarantor. Amigo believes that if someone has your back and trusts you to repay your loan, then they can back you too.

Can unemployed people on benefits get a loan without a guarantor?

Lenders need to be sure that you can afford your loan repayments before they accept your application, so if your benefits are your regular income and you’ll have enough money to meet your repayments, then you may be able to get a loan without a guarantor. It is highly advisable to look at your spending behavior and budget closely before you take out a loan.

Can I get a no guarantor loan fast?

Getting a loan without a guarantor can often be a faster process than getting a loan with one, because there’s no extra person involved. Loans that don’t require a guarantor are usually substantially more expensive though, so from a cost standpoint it might be better to apply for a guarantor loan.

Written by
Andrew Freelander
Brand & Content Manager at Choose Wisely

Andrew joined Choose Wisely 5 years ago, originally working in a design capacity to make sure the website was simple to use. Most notably he worked with the Consumer Finance Association to design the comparison table of choice for High-Cost Short Term Finance products.

The quickest way to find the best no guarantor loan for you.

No obligation. 100% secure.

Important Information.

All of the information in this guide is correct at the time of writing.

Rates shown are quotes based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 3.9%APR to a maximum of 1575%APR Representative and loan repayment periods range from 3 to 60 months.

[*][†] Once accepted, your loan can be transferred to you in as little as 15 minutes. The time that it takes for the loan to show in your bank account will depend on your lender and your bank.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to moneyadviceservice.org.uk.

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
Your score can be accessed for free via any of the main credit reference agencies such as Credit Karma, Clearscore or Experian.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk