If you’re caught out by an emergency and you don’t have the money to cover the cost, who can you turn to? And what if you have a poor credit score and you can’t find anyone who is willing to be your guarantor?
Fortunately, that’s exactly what no guarantor emergency loans were made for. In this article, the Oyster Loan team explain what an emergency loan is, what they are used for, and how you can get one.
What is an Emergency Loan?
An emergency loan is a way for you to gain access to the emergency finance you need very quickly. This is normally only for a small amount of money but the main benefit comes from just how quickly you can have the loan approved.
Emergency loans are a form of unsecured loan. This means that you will have a credit check carried out on you along with an affordability check to make sure you can pay back the loan. Unsecured loans are different from secured loans because you don’t need to put forward a form of collateral in order to be approved for the loan.
Collateral usually comes in the form of a valuable asset (such as your home). The loan provider has the ability to evict you and sell your home if you don’t make your payments on time. That’s why we recommend an unsecured loan so you aren’t even at risk of this happening to you.
You will normally only be able to take out less than £1,000 in an emergency loan. Although this doesn’t sound like much, this loan is designed for small emergencies that you don’t currently have the money to pay for.
This also means that it is an easy loan to pay off, due to how easy it is to budget for during the repayment period.
What Are Emergency Loans Good For?
Most people use emergency loans to cover the cost of an unexpected accident. One of the most common uses of an emergency loan is to pay for a boiler or car breakdown. These can be quite expensive and you won’t always have the ability to pay for them out of your own pocket immediately.
This is where emergency loans come in. Sometimes, even within the same hour, the money you need can be in your account.
What is a Guarantor Loan?
Many emergency loans require a guarantor. This is somebody who will pay the loan off on your behalf if you are unable to do so yourself. This person is normally a close family member. In order to be your guarantor, they must also be subject to a credit check and an affordability check.
Guarantors can be difficult to find because your friends and family members may be unwilling to put their own credit scores on the line or you might not feel comfortable asking them because it is such a large commitment.
Too often, we see borrowers fall out with their family members who are their guarantors because the borrower defaults on their loan – leaving their guarantor to pay it off for them. This can seriously damage your relationships and it is best to avoid it when at all possible. That’s why we always help borrowers find no-guarantor loans.
Can You Get No-Guarantor Loans with Bad Credit?
Yes, you can normally get no-guarantor loans when you have a poor credit score. There are many finance companies who specialise in providing these kinds of loans.
It is worth mentioning that no guarantor payday and short-term emergency loans have a higher rate of interest than the loans that you might get at a bank. However, it may be the only way that you can get access to emergency finance.
Additionally, taking out no-guarantor loans when you have a poor credit score is one of the best ways that you can begin rebuilding your credit score. This will help you find cheaper loans in the future because more lenders will be willing to accept your applications.
How Can You Get an Emergency Loan?
The best way to find an emergency loan if you have no available guarantors and ap poor credit score is to go through a loan broker. Loan brokers are different from lenders because, instead of lending you the money directly, loan brokers put you in contact with the loan providers best suited to your individual needs.
Each lender will have different criteria for who they are willing to offer money to. It can take hours for a borrower to search for the best loan online. Using a broker makes the process far quicker and this speed is invaluable when you need the money as soon as possible.
Compare Quotes with Oyster Loan
If you have a bad credit score you’re looking for a no-guarantor emergency loan, try Oyster Loan. We are a loan broker, not a direct lender. This means we take your application and show it to our panel of unsecured loan providers to look at.
It all starts with your application with us. This is where you tell us how much money you would like to borrow, how long you would like the money for, and how you intend to pay off the loan. We then run a quick credit check on you along with an affordability check. This is to make sure that you are able to repay the loan.
After these checks are complete, we submit your loan application to our network of lenders. Each of these lenders assesses your application against their own criteria to decide whether they will offer you a loan. Once we gather all of their offers, we’ll show them to you – this is done normally within seconds. This saves you time and money because you don’t have to search for all of these offers yourself and you will likely find a better deal by using a broker.
You are under no obligation to accept any of the offers we provide you with and the service is completely free of charge.
To get started with your application, Click Here.