Can You Still Get A Loan With Bad Credits & Without Guarantor

Long story short – yes, you can!

Keep in mind that an applicant who has a good credit score and a co-signer beside them, face difficulties to get their loan application approved. Times have changed and lending institutions have made the process a tad bit simple but they still exercise a lot of strictness when it comes to loan approvals.

Loan With Bad Credits & Without Guarantor

Now, your situation is dire, to begin with. You have a bad credit score and no one to vouch for you as your guarantor. So what you can do is take the path less taken get loans for bad credit without guarantor. In addition to that, you can go for any of the following three ways. Be sure to read through the sections that follow attentively.


Secured Loans

This is probably one of the best ways to get a loan and that too in minimal delay. All you would need to do is to give the documents of property you own, gold, and even secured credit cards. Lending institutions will look at your case now more attentively since the risk factor for your case has gone down drastically.


Unsecured Loans

Unsecured loans are those where the lender lends you money without asking for any collateral. The catch lies in the fact that they will be looking at your salary and the fact that you are working in a reputed company for more than a year. If you are an entrepreneur, the lending institution will ask for documents like your company’s turnover, tax returns and other relevant data.

Be advised that the interest rates will be very high and tenure will be short as well.


Alternate loan options

NBFCs

It is the abbreviated form for Non-Banking Financial Institutions. These institutions are saviours for people who have poor credit scores. Be advised – the interest rate they will charge from you will be a tad bit higher than most banks.

Peer to peer lending (P2P)

Then there are certain websites that offer loans to people with poor credit score and don’t even ask for a guarantor. The tenure period will mostly lie in the range of one to three years.

App-based lending

Thanks to improvements made in digital technology, there are several startups out there that provide loans to people, on a short term basis. The only thing they would look for is your salary. Despite the high-interest rates, it is a great way for you to improve your credit score.


We live in trying times, which is why it is common for you to find yourself in a financial emergency often. Feel free to apply for a loan even if you have the least credit score or someone to vouch for you as your guarantor. But before you do, always make sure that the lending institution you have selected has been in business for at least half a decade or more. Your situation is already terrible and you don’t want to get into more financial trouble now do you!?


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