The huge stress you feel when you arrange a guarantor for your loan application sometimes affect your decision adversely. You may even drop the idea to apply for a loan, as it is actually not easy to beg people to back your loan application. They ask you many questions about your finances, they want to know the credit scores, and after knowing all the secrets of your financial life, they may deny. Perhaps, this is why the concept of no guarantor loans came into existence.
The relief from compulsion of presenting guarantor is a great facility. However, to get a loan without the backing of repayments, you need to prove your creditworthiness through other aspects. Know about them well as they can make the borrowing smoother.
A good credit score is the most promising thing
The first thing that a lender looks for is the credit rating. It tells a lot about the financial behaviour of the applicant and they want to look good credit performance in your financial records. It is not difficult to convince the lender for approval with a good credit performance.
Not a good credit? Fine, present your income status and current financial status
To get loans without guarantor, you need to look credit worthy in some or other way. If you cannot qualify on the credit score status, then present your income status and other current financial details like bank statement. But they should be good enough to prove you a reliable borrower. The loan company wants to see repayment capacity and if you can show that, availing funds is hassle-free. This is specifically important in these loans because the interest rates are high and the instalments are little heavy. No lender wants to risk the money and this is why looks for the reasons that prove the financial efficiency of the borrower.
Additional income proof is cherry on the cake
With high interest rates of the loan, it is important that you should have adequate arrangements to handle the instalments. If you have an additional source of income, then show it in your loan request. This is going to benefit you greatly. Double source of incomes means the borrower is promising and doing well in the finances.
Your increment letter too is the game changer
On regular intervals, the employers give increment to its employees. If your increment is not far or you have received it, then let the loan company know this. Financial growth matters a lot to the lending firms, they get positive with such things. It is also a good chance to get the desired rate during the customisation. Also, it helps you get special offers. For instance, the buzz of no guarantor Christmas loans is on its height and the lending firms are offering funds with countless offers. Some are giving unprecedented cheap rates, while some commit to make repayment plans flexible. This luxury is easy to achieve for the borrowers who are good in their finances.
The above points are worth to consider when you apply for the loan without guarantor. Follow them, apply them and you have no reasons to regret.
Note – A one loans offers no guarantor loans on customised rate quote. Show your financial efficiency and get a smooth approval without any documentation and physical verification.