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Looking for an alternative to ‘no guarantor’ loans?

118118Money.com
  • You could consider a credit card instead
  • Guaranteed credit limit
  • Check your eligibility with no impact to your credit score
Check my eligibility This won't affect your credit score

Representative example: Amount of credit £1,200. Interest rate: 49.0% pa (variable) Representative 49.0% APR (variable)

What is a no guarantor loan? 

A no guarantor loan does not require another person with a better credit rating – typically a family member or close friend – to guarantee to keep up the repayments if you can’t make them. These types of loans are another way to describe an unsecured loan.

As with some unsecured loans, lenders who consider applications from those with adverse credit often refer to this offering as ‘no guarantor bad credit loans’, they are however the same as an unsecured loan.

We can offer personal loans with no guarantor needed for between £1,000 and £5,000 to be repaid over 12 to 36 months. (missed or late repayments on a 118 118 personal loan will incur a £12 charge). 

However, we understand that everyone’s situation is different and a no guarantor loan might not be quite right for you. As an alternative, we may be able to offer a credit card with a credit limit of up to £1,200.

Apply for a credit card from 118 118 Money with confidence
Use our eligibility check to find out what credit limit we’ll offer you before you apply, without affecting your credit rating!
Check my eligibility This won't affect your credit score
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What are the differences between a credit card and a loan without a guarantor?

If you’re considering an alternative to a no guarantor loan, a credit card from 118 118 Money could provide the answer:

With the 118 118 Credit Card, the representative APR is lower than the representative APR on our personal loans.

With a credit card, you can repay the balance in full, make a minimum monthly repayment or choose to pay any amount in between. With no guarantor loans, there will be a fixed monthly instalment to pay – although you may be able to repay early if you can afford to. If repaying the balance in full on the due date rather than the minimum payment, the total payment can be cheaper than a loan as you wouldn't accrue any interest. 

You can use a credit card as a continuous line of credit if it’s within the agreed limit. When you take out a no guarantor loan, the agreement comes to an end when the loan amount (plus interest) is repaid in full.

Some credit cards can come with a 0% purchase fee, dependent on your own affordability and if managed responsibly, this can be a cheaper form of borrowing. Some credit cards also offer added features such as balance transfers and cash withdrawals. 

Credit cards are covered under Section 75 of the Consumer Credit Act. Typically this provides you with additional security for purchases between £100 and not more than £30,000. 

Credit cards vs no guarantor loans

 

 

Credit Cards

No Guarantor Loans

Representative APR

Typically lower than no guarantor loans

Typically higher than credit cards

Repayments

Repay the balance in full, make a minimum monthly repayment or choose any amount in between

There will be a fixed monthly instalment for you to pay, although you may be able to repay early if you can afford to

Credit Limit/Amount

Can be used as a continuous line of credit, if it’s within the agreed limit

The agreement stops once the loan amount (plus interest) is repaid in full

 

 

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Want to apply for a credit card?

  • Alternative to a no guarantor loan
  • Check your eligibility with no impact on your credit score
Check my eligibility

Can a credit card be an alternative to a no guarantor loan?

Whether to take out a guarantor loan or a no guarantor loan is ultimately dependent on your individual circumstances. If you have a poor credit history and have been rejected for credit by your bank, then looking into alternative providers for guarantor or non-guarantor loans could be an option for you.

Similarly, dependent on your circumstances and credit rating, a credit card may also be another option, 118 118 will consider your application if you have a bad credit score.

Generally, in comparison to personal loans, credit cards offer lower interest rates, which can make them worth considering when compared with no guarantor loans in the UK. As with any financial product, your credit score will play a part in whether your application is successful or not. We offer an eligibility check that will tell you if you’re likely to be approved for a credit card with 118 118 Money, without affecting your rating.

A credit card from 118 118 Money could be the answer if you want to consider a revolving line of credit rather than a loan. Meaning you can use any amount up to your limit at any time as long you stick to your credit agreements. Unlike a loan, where the agreement is terminated once the balance is repaid. The representative APR is lower on a 118 118 Credit Card compared to our loans with no guarantor. Should you repay your credit card balance within 51 days, it will be interest-free. After that, you will be charged interest on the outstanding balance and you should note that there will always be a minimum monthly repayment if there is a balance outstanding. We also recommend that you always try and pay more than the minimum monthly repayment, where affordable.

Why use a 118 118 credit card as an alternative to a loan with no guarantor?

If you think the features of a no guarantor loan might not be quite right for you, the 118 118 Money credit card could be the answer you’re looking for:

  • Get a credit limit of up to £1,200.
  • Repay in full or in instalments to suit you, as long as you make your minimum repayments. If you can, you should always pay off more than the minimum repayment.
  • Up to 51 days interest-free on purchases when you pay your full balance each month.
  • You can check your eligibility with no impact to your credit score.

Should I apply for a loan without a guarantor, or a credit card alternative?

Before applying for any form of loan or credit, it’s important to do your research. Whether you need the money for an urgent car repair, to consolidate debt, a vet/medical bill, or a planned expense such as a family holiday or home renovation, you should take the time to fully understand your financial situation and ask yourself:

  • How much do I need to borrow?
  • How much can I afford to repay each month?

If you need a hand in answering these questions, try out our budget planner to help give you a better idea of your financial circumstances and affordability.

Once you understand what your financial picture looks like, you can then decide which form of credit best suits your own circumstances.

What is a credit check, and will 118 118 Money do one?

A credit check allows lenders to get an idea of your borrowing behaviour and your creditworthiness. They will be able to see how you’ve handled credit in the past and whether you’ve made your repayments on time. It helps them to work out if you are responsible with credit and will influence their decision on your application.

You can sign up with companies that allow you to check your credit report before you apply for no guarantor bad credit loans, credit cards, or any other financial products. When you apply with us, a credit check will be done. But before you begin, you can use our eligibility checker to get an idea if you’ll be approved by 118 118 Money – and it won’t appear on your file.

Am I eligible for a 118 118 Money Credit Card?

If you think our credit card could suit your needs more than a loan with no guarantor, why not use our eligibility checker before you apply? It will give you an idea of whether you’ll be approved by 118 118 Money, as well as the credit limit we can offer. And don’t worry, it won’t have any impact on your credit score. If you decide to complete a full application, we do complete a full credit check at this point.

To apply, you’ll need to:

  • Be a UK resident aged between 18 and 70 years old
  • Earn at least £8,400 a year
  • Not currently be in arrears with another lender
  • Have had no default payments in the last six months

The details we’ll need from you are:

  • Name
  • Mobile phone number
  • Email address
  • Date of birth
  • Marital status
  • Current employment and residential status
  • Home address
  • Net monthly income
  • Outgoings
Apply for a no guarantor loan alternative from 118 118 Money

Want to apply for a credit card with 118 118 Money? You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

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No guarantor loans alternative FAQs

If you think a no guarantor loan is the right option for you then you can apply with 118 118 Money. We offer loans of £1,000 to £5,000 over a period of 12 to 36 months.

The rates on our no guarantor bad credit loans range from 49.9% to 79.9% APR. We expect 51% of our customers to get our representative 49.9% APR, but the rate you are offered will depend on your personal circumstances. Other lenders may be able to offer different rates. Representative example: Amount of credit: £2,000 for 24 months. Interest rate: 41.2% pa (fixed). 24 scheduled monthly payments of £123.64. Total amount payable: £2,967.43. Representative 49.9% APR.

The representative APR on our credit cards is lower, at 34%, which is one benefit they provide over a non guarantor loan.

Yes, if you take out a no guarantor bad credit loan with 118 118 Money, the interest rate will be fixed. The monthly repayments on our loans are fixed, so you’ll always know exactly how much you are repaying each month.

Other lenders may also offer variable rates. To help you understand the difference, we’ve summarised the two below:

Variable-rate no guarantor loans

  • This means the interest rate on your loan can go up or down.
  • That in turn means your repayment amounts could change from one month to the next.

Fixed-rate no guarantor loans

  • This means the interest rate on your loan will be set at the start and will not change.
  • That in turn means your monthly repayments will always be the same.

Yes. If you wish to repay all or some of the money back early, give us a call on 02920 548 118 and we’ll be able to talk things through. By repaying ahead of schedule, you will be able to save on the amount of interest you owe and must repay. This is in line with the rules and law around early repayment.

You could consider using a comparison website to get a better understanding of exactly which types of products are available at present. Many lenders, including 118 118 Money offer a pre-application eligibility checker option. Using this can give you an indication whether you're likely to be accepted or not. This can be useful if you don't want to have too many credit checks conducted in a short space of time. Too many searches can have a negative impact on your credit score. 

And should you wish to speak to someone about our cards or loans for poor credit with no guarantor, please don’t hesitate to get in touch with a member of our team.

You can use our eligibility checker to see if you might qualify for a credit card. This will not impact your rating. If you choose to go ahead and submit an application, we will carry out a full credit check. However, please bear in mind that lots of applications for credit in a short space of time can have a negative impact on your score.

If you are approved, repaying your balance in full and on time can improve your score, as it can prove to lenders that you are a responsible borrower. On the other hand, not keeping up with your repayments could harm your rating.

We understand that it can be difficult for people with less-than-perfect credit to get approval from their bank, which is why we look beyond your credit score and offer credit building credit cards. We will never be able to guarantee you’ll be accepted, but our aim is to help as many people as we can.

One advantage of taking out a 118 118 Credit Card is that you can manage your account whenever you want to online.

If you do have any questions for us, please don’t hesitate to get in touch. Our customer service team are available at the following times:

8am – 7pm Monday to Saturday
9am – 5pm Bank holidays
Closed – Sundays

All you have to do is call 02920 548 118.

If you are declined for credit and then your circumstances improve, we welcome you to apply again after 180 days.

When you apply with us, your success is based on your credit rating and other publicly available information. This could include any CCJs against your name or your presence on the electoral roll. Of course, the higher your credit score, the better your chances of being approved.

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Ready to apply for a credit card from 118 118 Money?

You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

Check my eligibility
118118Money.com