6 Qualifying Qualities, which Make No Guarantor Loans Distinct from Others

Posted by Katherine Felix on September 16th, 2017

Loans have different objectives, and this is where each loan belongs to its own special and distinctive category. The financing options available in FinTech market are innovative, offering loans to bad credit borrowers as well as those who are either unemployed or may have other reasons to search for credible means of funding. No guarantor loans are universal in nature that attach to mainstream funding coming through the bad credit or unemployment or debt consolidation.

Personal loans like these are dignified with several qualities, which have to be assessed from different frames. Here are those qualities:

Quality#1

Ideal for Starting Small Business Ventures – Loans that do not ask for a guarantor are perfect for starting a new business venture. The percentage of interest paid on the no guarantor business loan is also far less, which eventually gives it the character of a low budget loan.

Quality#2

Option to Show Collateral – No guarantor loans sit between the unsecured and the secured. Borrowers have the flexibility to settle between the secured or the unsecured loans, depending on the fact whether they are in a position to show up collateral or not. Therefore, one can search for no guarantor secured loans and the no guarantor unsecured loans, maintaining their search comforts.

Quality#3

Quick Funds Disbursal – With the no guarantor loans out there, you definitely have the advantage of funds disbursal into your registered bank account within days. Funds are approved quickly and there are minimum obligations you are following. The formalities associated with this type of lending are almost negligible. Since the funds come directly into your bank account, you do not have to approach any third party vendor.

Quality#4

Build up Credit Balance without a Guarantor – You are short of funds, and this is the primary reason for you to opt for a personal loan. However, you do not have any guarantor to support, which gives the likelihood of approaching a lender offering no guarantor loans. The claims for no guarantor loans are based on other factors too.

Quality#5

Formalities are Reduced – Unlike several other types of personal loans, funds coming from a no guarantor loan is way out of formalities. The lender will not ask you to provide a genuine guarantor, who is going to countersign on loan application. In a way, you do not have a guarantor but you have the loan.

Quality#6

Short term Loans – Funds you receive from no guarantor loans are short term in nature. Therefore, you have better means of funding, which is going to improve your credit score and make you economically stable. The loans without a guarantor are a winner all the way. Above all, the loans are not expensive for the borrower. He will not feel the burden of taking out the funds for improving his financial condition.

What Conditions Qualify You for No Guarantor Loans?

You have been introduced to several types of personal loans, and no guarantor loans are one of them. There are specific qualifying criteria to apply for these loans. Let’s do a detailed analysis on it, and discuss qualifying conditions.

Condition#1

Sufficient Cash in Your Savings Account – Loans without a guarantor are approved only if your savings account is funded sufficiently and not otherwise. You know it well your lender wants to establish trust factor, and without an active savings account and appropriate funds lying out there, the loan will not turn in your favour. Keep the qualifying criteria on a heave, and work in this direction unfailingly.

Condition#2

Do Not Apply to Multiple Lenders on One Time – You may be in a hurry to apply for a loan that comes with no guarantor claims, but at the end, you have to make yourself believe that no lender is going to take this behaviour as appropriate or serious. Applying for a loan to multiple lenders shows your financial situation is far downsized than otherwise expected. It is going to be a terrible situation. Moreover, your lender is also seeing you as a non-serious borrower. Be aware, you are applying for no guarantor loans from one genuine lender at any single point of time.

Condition#3

Build up Good Credit Score - You cannot have a bad credit score and then leap for attractive funding options coming through the no guarantor loans. It would be typically a far-fetched situation, and you know it well, nothing concrete would ever come out. What ideas you have in line to build up your credit score? Pay your bills in selective time frames, never miss out on payments and keep the funds in your bank’s savings account – these are the three preliminary areas you should focus.

Condition#4

Good Employment - Lender will not see you as his prospect, if he comes to know that you are out of the job. In most practical situations of lending, employment is a decisive factor. It is the criteria, which keeps your position less risky before the lender. Employment is seen as a continuous source of income, and it shows you in a favourable light. Your job is the jackpot to receive funds. It shows you are financially stable, though you may be in the need of funds.

Condition#5

Efficient in Repayments - Lender is happy to find that you can repay the loan within the agreed time frame. He will also give you thumbs up when you show him that you are going to repay the principal along with the interest rate. Repayments made within the timeframes means you have solidified your position before the lender.

Loans availed without guarantor claims make a huge difference to your financial history. The loans have lower interest rates, usually fixed, and have enormous fascination attached to them as well. Your success to these loans can only be registered if you have the objective and started working in this direction to realise the objective.