Are you in need of a loan to pay an emergency bill or a home repair? Do you also have a bad credit score below 750? If yes, then you’re probably struggling to find a lender that is willing to offer a loan that can help you out of your financial bind. The easy way to get a loan with a bad credit score is to sign up for payday loans no guarantor.
What is a No Guarantee Loan And Do They Accept Everyone?
Most lenders will say that they accept loan applications from those with bad credit. But there’s a major catch; they ask for a ‘guarantee’. The guarantee is a sort of legal promise where the borrower has to name a guarantor, who will cover the debt payment in case of a default.
While offering a guarantee or guarantor increases the chances of attaining a loan with a bad credit score, not everyone can easily find a guarantor who is willing to pay off their debt.
This is where no guarantor loans or loans no guarantor come in. With no guarantor loans, you don’t need to produce a guarantor to get approved for a loan. You will be able to get a loan on your own.
Best of all, they are a good option for those seeking payday loans with no guarantor as such lenders are also willing to approve those with a bad credit score.
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5 Companies Offering No Guarantee Loans
If you are looking for payday loans no guarantor, but don’t know which one to go for, then we’ve prepared a list of the best and most trustworthy no guarantor loans.
Let’s take a look:
Best Egg
If you have a good or fair credit score of less than 650, then Best Egg can be a good option as it offers no guarantor loans. The minimum is $2,000 and the amount goes up to $35,000. However, this limit may vary by state.
The minimum amount that you are allowed to borrow also changes by state. These amounts open up the possibility for borrowers to make both large as well as small investments. The company doesn’t put a lot of restrictions and you can use the money to cover a variety of expenses including home repairs and hospital bills.
APR rates range from 5.99 to 29.99 percent. The interest rate that is offered to you by the company will depend on your credit score and your annual income. Once approved, Best Egg is known for funding the cash to your account by the next working day.
The minimum offered loan term is 36 months, while 60 months is the maximum offered term. However, there is no prepayment penalty, so you can make early payments without being charged an additional fee.
With Best Egg, you have the opportunity to pre-qualify for no guarantor loans with a soft credit check. This will allow you to see all terms, rates, and fees without your credit score taking a big hit.
It is worth pointing out that Best Egg does charge an origination fee which can vary from 0.99 to 5.99 percent of the amount.
On the downside, Best Egg does not have an online customer service facility. However, they do have a UAN number, which has been reviewed as helpful and accommodating.
Here are the pros and cons of choosing Best Egg:
Best Egg is a solid option for no guarantor loans. However, those with a bad credit score should only choose this option if they’re willing to pay the high APR rate.
CocoLoan
If you’re searching for payday loans no guarantor, or bad credit loans no guarantor, then CocoLoan can be a good option. Loan amounts start from $100 and can go up to $1,000 for payday loans no guarantor.
CocoLoan is the fastest lending company out there. Once you fill out the loan application form, it is approved in under 5 minutes, and the cash can be deposited into your account in a few hours.
The repayment terms aren’t mentioned on the website as they vary from lender to lender. But on average, lenders usually provide smaller loans with a repayment term of a week or a month.
Compared to other platforms, CocoLoan actually has higher APR rates that start from 43.1 percent, as mentioned on their website. However, reviewers of the app claim that the rates can be as high as 1333 percent. Since it’s not a direct lender, the rate may greatly differ from lender to lender.
But with an approval rate of 95 percent, it is clear to see why people choose to overlook the higher than usual APR rates.
CocoLoan charges no additional fee and has good customer service. Those with a bad credit score are able to improve their credit score with timely payments as on-time payment history is automatically added to their credit score by CocoLoan.
In addition to the fully-online services, CocoLoan is also popular for its simple prerequisites. You won’t have to provide a whole bundle of paperwork to be approved. The main requirements are that the borrower is of legal age, and be able to produce proof of US residency.
Here are the pros and cons of choosing CocoLoan:
CocoLoan offers no guarantor loans to almost anyone, but with extremely short payment terms. It might be a good option for those seeking small payday loans no guarantor.
CashUSA
If you’re looking for accessible payday loans no guarantor for bad credit, then CashUSA can be a trusted online lending network that caters to anyone and everyone.
Once you fill out the application form, you are provided with multiple offers from lenders within seconds. The best thing about relying on CashUSA is that you’re bound to find a lender who is willing to offer a loan with your credit score. Hence, there’s a higher chance of acceptance.
Loan amounts at CashUSA are between $500 and $10,000. However, the higher loan amounts are usually only provided to those with a good credit score. Keep this in mind when asking for a specific amount.
Loan terms vary from lender to lender, but are usually from 3 to 72 months. Being in direct contact with the lender gives the borrower the chance to discuss flexible repayment terms.
Interest rates at CashUSA are highly competitive and probably the best on the market starting from only 5.99 percent. The highest interest rate is 35.99 percent, which is usually only for those seeking higher loan amounts.
The approved loan amount is deposited directly into your bank account within 24 hours of approval or by the next working day. Plus, CashUSA is a free to use network, and does not charge additional service fees.
Here are the pros and cons of choosing CashUSA:
If CashUSA is available in your state then we recommend choosing it for no guarantor loans as it is one of the most trusted lending networks out there.
iPaydayLoans
While most companies only offer small loan amounts to those seeking loans no guarantor, iPayday is a broad online network of lenders who are willing to offer loan amounts of up to $5,000.
iPayday also caters to those who are looking for small loan amounts as low as $50 for quick access to cash. This makes iPaydayLoans a good option for all kinds of borrowers.
Interest rates are not mentioned on the company’s official website as they vary by lender. You will have to sign up to discuss this factor with the lender.
Payment terms of no guarantor loans at iPaydayLoans vary from 2 to 5 years. However, the end decision about what term to offer lies with the lender.
iPayday is also known for its speed. Once you fill out the loan application form, which takes less than five minutes, you can expect immediate approval and cash dispersal as quickly as the next business day.
Security and end-to-end encryption are guaranteed when using iPaydayLoans. Your information will be kept private and secure. Additionally, iPayday also does not charge a prepayment penalty or any service charges.
iPayday does not treat those with a bad credit score any differently. Their application is still considered and forwarded to their network of lenders as they have a huge network of lenders, including some who target applicants with a low credit score.
Here are the pros and cons of choosing iPayday:
iPaydayLoans is a trustworthy company providing no guarantor loans. However, make sure to do your homework as the company isn’t very well known and doesn’t advertise all relevant information on the website.
BadCreditLoans
As the name suggests, BadCreditLoans was created to cater to applicants with a bad score. It bridges the gap between borrowers and lenders and houses a huge number of lenders.
Loan amounts on BadCreditLoans range from $500 to $10,000. However, those with a bad credit score are only eligible for small payday loans no guarantor of up to $1,000.
Lenders at BadCreditLoans may offer a minimum repayment term of 90 days or a maximum term of six years. However, those with a bad credit score may be offered shorter terms with the option to negotiate for more flexibility.
While most other no guarantor loan companies offer loans at ridiculously high interest rates, BadCreditLoans keep them affordable. The rate is in the range of 5.99 to 35.99 percent. Again, the rate you get will depend on factors such as the loan amount and your credit score.
In case you are unable to find loan approvals by any lender on the network, BadCreditLoans will offer you additional offers meant for debt relief, or other credit score related issues.
BadCreditLoans offers its services for free. However, origination fees and penalty fees still apply. This can make the loan a little more expensive, especially if you have a poor credit score.
Here are the pros and cons of choosing BadCreditLoans:
5 Companies Offering No Guarantee Loans – Conclusion
That was a detailed list of some of the best companies offering bad credit loans no guarantor. It is still recommended to do your own research and then make an informed decision accordingly since most companies can be very discreet with the information that they provide to the public. Ask questions and compare all your options.
Frequently Asked Questions
We understand how complicated no guarantee loans can be. Here are some of the most commonly asked questions about loans that are offered without a guarantee to help you have a better understanding:
What is a no guarantee loan?
A no guarantee loan is a loan that does not need a guarantee, i.e.: collateral or a person that guarantees the loan will be paid. Also called a co-signer, the guarantor is usually someone with a very good credit score. They’re typically the applicant’s family member or close friend. Moreover, they ensure the money will be paid back if the applicant defaults for any reason. These loans are easy to get as they do not require any sort of guarantee. You will have the option to apply on your own for as long as you meet other eligibility requirements such as minimum age requirement, income, credit score, and residency.
Can I get a no guarantee loan online?
Yes, it is possible to get a no guarantee loan online. Most lenders have digitized the process and applicants can apply online. You will have to submit digital copies of all the required documents such as your credit history and passport copy to ensure you qualify for the loan. The approval is typically given in a few minutes, however, money can usually take up to 48 hours to get deposited.
Can my credit score impact my loan application?
Your credit score is one of the few things lenders consider when processing loan applications. Anything below 580 is considered bad and can make it harder to qualify for a loan. Still, a large number of lenders offer loans to applicants with a low score. You will, however, have to pay a very high rate if you do not have a decent score. Anything above 600 is considered decent and anything above 700 is considered excellent. Your credit score tells how likely you are to make timely payments.
Can these loans help improve my credit score?
Yes, these loans may help boost your credit score if you make all payments as scheduled and ensure the lender reports this information to the three major credit bureaus.
Do I have to justify the amount I need?
It changes from person to person. Some lenders require applicants to explain why they need a loan and how they intend to spend the money. However, these requirements typically apply to business loans and mortgages. There are generally no such requirements when it comes to payday loans. Hence, they can be used for any purpose.
Can I get approved for a no guarantee loan without a credit history?
Some lenders allow borrowers without any credit history to apply for loans. Check our picks above and find a lender willing to offer loans to new borrowers. You can request a soft check or preapproval to ensure you qualify.