Everyone dreams about having a great car or dream car. You already know the model, the colour and all other things included. You may visit many stores and check those out. Sometimes your research online on various websites. Overall you are very excited about getting a new car. Price is also a concern for you. Suppose you found your dream car but its price is a little more than your budget. What will you do then? Will you give up on your dream car? I think, NO.
You don’t have to give up on your dream car. We all like to have a luxurious car to drive. If you like something very much then the budget should not be a concern, after all, it’s about your dream. As we discussed, you are running out of the fund for your car. So what all options are available for you? You can take a loan to bridge the gap in your funding. If your credit score is good then any bank or financial institution can offer you a loan. But if the credit score is not good then it becomes difficult to get a loan from the bank. In this case, you can take loans without guarantor from direct lenders.
Now why loans without a guarantor? There must be some specific reason behind it. As the name indicates it’s a type of loan where there is no need of co-signer. You can take the loan without anyone to be your guarantor. Since your requirement here is for less amount, you can get this loan very easily compared to other types of loan.
Guarantor Vs No Guarantor
Now, what is the difference between the guarantor loan and no guarantor loans?
First, let’s understand the guarantor loan. Whenever we borrow from a bank of any financial institution, lenders are always at the risk of loss in case of no repayment. If a borrower takes a loan and doesn’t pay on time then it’s a loss for the lender. So, to secure their money lenders ask for someone on behalf of the borrower who can be a guarantor. Here a guarantor acts as security who can be contacted if the borrower fails to make repayment. These way lenders can avoid the risk of loss.
Now coming to no guarantor loans. Why any lender will offer no guarantor loan when there is a high risk of loss?
Due to our spending habit and some past mistakes, most of the Britons have a bad or poor credit score. So it becomes difficult for them to get a loan from banks or financial institution.
For them, the only feasible option is online lenders who provide services and products specially designed for low credit people. Not all lenders are concerned about your credit score. Many lenders look for steady and high income. If you have a good source of income then it’s not difficult to get a loan. Many lenders provide loans without any guarantor. These types of loan are for a short duration with a small amount. This is the best financial tool to bridge the gap in your funding if you are planning something.
Since this is an unsecured type of loan without any co-signer, lenders charge a high rate of interest. But that is also fine. You are getting the money during difficult times, which should be fine with you.
Repayment of the loan is also very flexible. They will keep your repayment option in such a way that it won’t affect your monthly finance. Whenever you take a loan, try to make repayment on time. Making repayment on time will enhance your credit score which will help you in the future loan. If possible try to pay off your entire loan in one go.
Having said and discussed all, now you should feel happy that your dream car is not distant from you anymore. All the issues related to funding can be solved through a no guarantor loan. So go and choose your favourite model and colour and get your dream car home.