The technical term for a guarantor is co-signer. This is the person who will vouch for you in front of the lending officer thereby making sure you are creditworthy. On top of that, if you are unable to pay back the loan on time, the guarantor will be taking your place and repay your debt.
People often prefer not having a guarantor when it comes to applying for a loan. There are ways to do so. All one needs to do is to get in touch with lenders that offer loans UK no credit check no guarantor. But there is a catch – you would need to abide by the following so pay attention.
Take a look at your credit reports
There are several companies where officials keep track of your credit score. You can visit their website and order your credit reports either via phone or by simply visiting their websites. You credit report will be affected by factors like:
- Your repayment habits
- Total debt you have and
- The credit amount you have requested to date.
Keep in mind that a credit score of 500 is the worst one can have while the best is 850. Even if you have a credit score of 600, you would need to apply for a loan with a guarantor.
Identify the ways you can repay your loan EMIs on time
The next order of business is to make sure that you have ways to repay your debts on time. Be sure to avoid applying for a loan to repay any existing debts.
Be sure that you are managing your debt in a careful way
The most efficient way to keep your credit score in check to increase your chances of getting no guarantor loan application getting approved is managing your debt.
Debt management is simply steering clear of loans to satisfy your wants, not needs. A few simple ways to manage your debt are as follows:
- Keep credit balance on your credit cards low
- Pay off outstanding debts on time
- Always apply for credit only in case of financial emergencies
Things to keep in mind when you are talking with a loan officer
Before you apply for a loan with the lending institution, keep the following in mind-
- It is essential for you to be completely honest and forthcoming about all the information you give to your loan officer. This will better your chances of getting your loan application approved.
- Always sit with your loan officer with updated documents like your current utility bill so that the official can mark you as a creditworthy individual.
- Always avoid producing doctored documents and falsification of credit history. It can lead to serious legal issues and even prosecution.
Summing this post with some important words of advice – keep this in mind that a lender will always assess your ability to pay back your debt and that too on time. To make sure that you are in the good graces of the loan officer, produce documents that back you as a creditworthy individual. Documents like car EMI receipts and utility bills, all paid on time; show that you are a low-risk case. This puts you on the fast track of getting a loan without a guarantor.