Loans with No Guarantor

If you have bad credit and can’t find a guarantor, you still have options. We’ll walk you through the different types of loans available.

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Table of contents

Written by Mark Grimley
Read time: ~5 mins
Published: 27th September 2023

What is a no guarantor loan?

A no guarantor loan is any loan that doesn’t require you to have a guarantor.

If you’re struggling to get approved for a loan because you have bad credit, a guarantor loan is one way of getting access to funds with the help of a family member or friend.

The main difference between loans with no guarantor and a guarantor loan is that you don’t need a member of your family or a friend to guarantee that they’ll repay the loan on your behalf if you’re unable to.

What loans can I get without a guarantor?

Many loan options don’t require you to have a guarantor. These include;

  • Unsecured personal loans
  • Secured personal loans
  • Long term loans
  • Short term loans
  • Bad credit loans
  • Payday loans
  • Instalment loans
  • 12 month loans

Are there any alternatives to no guarantor loans?

If you need to borrow money but don’t have a guarantor, there are other options to choose from;

Credit cards

You need a good credit score to access the best 0% interest-free credit card deals.

There are credit cards designed for people with very bad credit - interest rates will vary depending on your circumstances, and the amount you can borrow will depend on your affordability and credit history.

If you have no credit history or need to rebuild your credit, a credit card for bad credit can help you to build your credit score by using it responsibly.

The longer you use a credit card and always pay back what you owe, your interest rates and limits will improve over time.

The drawback of using a credit card is that you’ll pay interest, which can be expensive if you can’t get a 0% deal or your introductory offer has run out. If you don’t repay what you owe in full every month, your debt could spiral.

If you’re late paying your credit card bill, you risk being charged fees, and your credit score could suffer. The temptation to overspend is also something you need to consider if you’re thinking of applying for a credit card.


You can get an overdraft with your bank account, allowing you to withdraw money even if your balance is £0. You need to ask permission to use an overdraft; this is called an authorised overdraft.

Overdrafts are an expensive form of borrowing, designed for short term emergency use.

Buy now, pay later (BNPL)

Many retailers allow you to purchase goods and pay for them over time - typically between four weeks and twelve months.

BNPL products can be used to spread the cost of catalogue credit, store cards and large purchases at the point of sale.

It’s important not to over-stretch yourself by taking out too many BNPL products simultaneously. It’s down to you to keep on top of repayments - the more you use BNPL as a method of payment, the higher your risk of not being able to afford to pay back everything you owe at a later date.

Borrowing from a credit union

Credit unions are community organisations run by their members. They aim to provide loans with low-interest rates and encourage members to save regularly.

You’ll need to become a credit union member to take advantage of a loan.

Borrowing from friends and family

You could ask a loved one for help if you need cash in an emergency.

Make sure you take the time to put your agreement in writing and discuss a repayment plan and what will happen if you’re late repaying or can’t repay what you’ve borrowed.

You should always tread carefully when borrowing money from friends or family. You risk your relationship if something were to go wrong and you couldn’t repay what you’ve borrowed. Things could get very awkward, and you could risk losing a good friend or falling out with a family member unless you can be confident you can pay back what you’ve borrowed.

Community Development Finance Institutions (CDFIs)

CDFIs are independent organisations that offer loans to people who struggle to access credit. CDFIs typically charge higher interest rates than credit unions.

Employer salary advance schemes (ESASs)

Some companies offer their staff access to their wages before payday. These schemes are usually provided to an employer via an external company.

If your employer has an ESAS scheme, it can be a helpful way to pay for unexpected costs between paydays. However, most schemes charge a fee, and it's easy to become dependent on them, meaning you live on a reduced salary if you use it regularly.

It’s worth noting that ESAS schemes are not regulated by the Financial Conduct Authority (FCA), so you aren’t protected if things go wrong.

How can I get a loan with no guarantor?

Before applying for a no guarantor loan, you will need to;

Compare no guarantor loans

Using a comparison site like ours, compare loans with no guarantor to determine the right one for you. It’s worth weighing up your options by checking for fees and looking at the interest rates and the total amount payable to find the best deal.

Check your eligibility

Lenders will all have their own ideas of the type of borrower they are willing to lend to, but to apply for any type of loan, you’ll need to be at least 18 years old, be a UK resident and have a bank account.

Check your credit score for free

There are lots of free apps that allow you to look at your credit report in detail, including ClearScore, Credit Karma and Experian. Download one and sign up to find out your credit score.

A good credit rating demonstrates to lenders that you’re likely to repay your loan and increases your chances of being approved for one.

If your credit score is poor, don’t panic. You can build your credit score if you’ve never taken out a credit product before. If you’ve previously managed credit products poorly, you can still rebuild your credit score.

It will take some time - typically six months, but it’s worth it to gain access to cheaper borrowing in the future.

You can start to build your credit score by:

  • Paying your bills on time and in full
  • Registering to vote
  • Not applying for more than two new credit products in the space of a six-month window
  • Correct any mistakes on your credit file
  • Not withdrawing cash on credit cards
  • Keeping your credit utilisation low
  • Taking out some form of credit if you’ve never done before

Work out if you can afford it

Improve your chances of getting a loan by getting your finances in order before you apply for a no guarantor loan.

Create a household budget by making a list of all your outgoings and incomings, and ask yourself if you’ll be able to afford the monthly repayments. Include saving for holidays, birthdays and Christmas, so you don’t over-stretch yourself.

Where can I get a loan without a guarantor?

There are many lenders on and offline who offer loans without a guarantor.

Below is a list of places you can apply for a no guarantor loan;

  • Traditional high street bank branches
  • Online via a comparison site
  • Online with a direct lender
  • Credit brokers
  • Supermarkets
  • Other retailers
  • The Post Office
  • Credit unions
  • Community Development Finance Institutions (CDFIs)

Can I get a loan with no guarantor even if I have bad credit?

Yes, it’s possible to be approved for a loan with a direct lender if you have bad credit and no guarantor is needed; however, it can be more difficult.

Some lenders specialise in lending to people with a poor credit history; however, the interest rates you’re likely to pay can sometimes be higher.

It’s worth exploring all your options and the above alternatives, even if you need money quickly. Don’t get stuck paying for an expensive loan through a lack of research. It’s worth spending time understanding your different options and comparing the alternative options too before deciding what’s right for you.

What are the advantages and disadvantages of loans without a guarantor?

  • You don’t need to spend time looking for a guarantor and having difficult conversations with family and friends about your finances
  • The application process is quicker and more straightforward because the lender doesn't require information from a guarantor
  • Many loans are quick and easy to apply for online, with some lenders sending money to your account within hours of approval
  • A loan without a guarantor can be more challenging to be approved for if you have a very bad credit rating
  • If you have a poor credit history, some lenders won’t lend you as much money if you don’t have a guarantor

No guarantor loans FAQs

Is it more expensive to get a loan without a guarantor?

Annual percentage rates (APRs) are how much interest you’ll pay on top of what you borrow from the lender.

APRs will vary between different types of loans, and even if they’re advertised at a specific rate, some lenders will change the interest they charge you depending on how risky they perceive you to be as a borrower.

Typically you can expect lower interest rates on guarantor loans than loans with no guarantor because they’re less risky to the lender, but it will largely depend on your circumstances.

The interest rate you’re offered will depend on your credit history and affordability.

Is a no guarantor loan a payday loan?

Yes, a payday loan is one type of no guarantor loan, but most loans, including standard personal loans, are classed as loans with no guarantor.

Unsecured personal loans, secured personal loans, short-term loans and bad credit loans are all loans with no guarantor.

Can I repay my no guarantor loan early?

Yes, you can. You can repay any loan you’re approved for early, but some lenders will charge an early repayment fee. These fees are typically called early exit fees and will usually be a percentage of the interest rate that the lender would have earned if you’d repaid the loan over the original agreed term.

Providers make money by lending you money and charging you interest. If you repay a loan early, they won’t make as much money, so the early exit fee covers their costs for setting up and maintaining the loan for you.

Not all lenders charge an early exit fee, so if you think you might want to repay your loan early, it’s worth comparing exit fees between providers before you apply, because you could save money by choosing a loan with no fees.

Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.

Important Information.

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

If you complete a loan search application on the Choose Wisely website, the rates shown may vary 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 13.9%APR to a maximum of 1721%APR Representative and loan repayment periods range from 3 to 60 months.

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

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
You can access your credit report for free from Credit Karma, Clearscore or Experian.

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