Formalities and obligations are the vital part of borrowing. Inability to fulfill them may close the doors of possibilities. However, nowadays the alternative online funding choices are making things a bit easier. Online loan companies are providing relief from some obvious obligations that exist in traditional lending. One of them is the guarantor. Several lenders are funding people without asking to present a guarantor.
You get rid of the tiring chase of people to be your guarantor. In that case, it is natural to feel stress less about the borrowing procedures. You think that now availing funds will be a cakewalk. However, still, there are certain factors and reasons that may stop you from qualifying for the no guarantor loans.
It is important to know about those reasons and play safely while applying for the loans. Throw a glimpse on the following points, as it will help you make successful efforts next time.
Read the reasons below to know what stops you from getting funds in guarantor-free loans:
1. A poor current financial status
When you are getting the chance of availing funds without going through the traumatic hunt for the guarantor, borrowing seems easy. But, the lender needs something in exchange for this relaxation. They want to know, how financially capacitate you are to bear a loan. For this, you need to have a good current financial status. Sometimes people apply for no guarantor loan with poor recent financial records and this is where they fail to get the approval. The absence of financial potential invites refusals and you should know that.
2. Worst credit scores
It is true that several lenders provide funds to the applicant, in spite of a bad credit score. But, that does not mean that worst credit scorers can also get funds. People with 0-560 scores are in the worst credit situation. Such borrowers have rare funding options. If you belong to the ‘very bad credit or worst credit score borrowers’ category then denial can be the result, which you get in the response to your loan application. In fact, having the worst credit record may even bring you rejections in the guaranteed loans for bad credit where a guarantor secures repayments. This is because you credit performance represents your financial behavior and having no worth on that part proves that you are not a creditworthy borrower. Even when you secure the repayments, lenders may reject the loan.
3. Multiple obligations
Your multiple debts and pending expenses prove you a financially irresponsible person. When you have already so much in pending to pay off, how will you repay their loan? The only concern of the loan companies is the timely repayment of their loan. The slightest fault on that part may provoke the lenders to make their mind to reject your loan.
4. Distraction of brokers
When you are in desperate needs of funds even the false hopes seems bright to you. Specifically, if you have very poor credit scores, you may find brokers that commit to get your loan approved. It is actually not a bad thing to hire a broker, sometimes they help but sometimes there may be just a series of fake promises. They will let make you pay them heavy brokerage. At last, you get nothing but another footprint for a rejected loan in your financial records. This leaves you more helpless with another fall in your credit performance and you become unable to apply to the direct lenders.
To avoid this, it is better to apply for the very bad credit loans with no guarantor and no broker from a direct lender. Yes, there are only a few options available in the market for worst credit borrowers, but honest denials are far better than faulty promises. At least you will not lose money on huge brokerage. In case, you get lucky, you may get the loan, may be less amount on high rates. But after all, that will be genuine and legal.
Next time you apply for a no guarantor loan, keep the above points in mind. You will have more chances of getting approval.
A One Loans provides No Guarantor Loans without any broker. Follow few basic conditions and get your loan approved in a short time and without much hassle. Bad credit borrowers can also apply and avail funds.