No guarantor loans


If you're thinking of applying for a loan, it helps to know what you're looking for.

For some people, that might mean a no guarantor loan.


Loans exclusively for Vanquis customers from £1,000 - £5,000

Representative 39.9% APR (variable)


Read our handy guide to no guarantor loans below - what they are and who can apply for one.

What is a no guarantor loan?

A no guarantor loan is where you alone manage the loan you take out and you don’t need another person to sign or guarantee that the loan will be paid. The loan agreement is between you and the lender.


Whilst these types of loans can be generally accessible thorough typical high street finance, in some instances these types of loans can be aimed at catering for those people with poor or bad credit scores.


As a result, lenders who consider applications from those with adverse credit generally offer loans which feature higher APRs. Typically, this is because most lenders see lending to someone with bad credit as risky. Applying for a loan with a guarantor can reduce that risk in some cases.



> Secured loan vs. no guarantor loan


> Typical criteria for a loan without a guarantor


> Eligibility for non guarantor loans with bad credit


> Some considerations when applying for a non-guarantor loan

Applying for a Vanquis Loan

Currently we offer loans directly to eligible Vanquis Credit Card customers via email, SMS or through the Vanquis App. You can also call us to check your eligibility and receive a link to your online application. Give us a ring on 0333 003 5802*.


However if you're not a Vanquis Credit Card customer yet, you can check if you are eligible for a Vanquis loan through a number of money comparison sites such as Compare the Market, ClearScore, Experian, Totally Money, Money Saving Expert and Money Supermarket.


Here's what you can expect if we offer you a loan:

  • Simple and straightforward online application
  • No hidden charges or fees, ever
  • Quick and easy eligibility check with no impact on your credit score if you are declined.


Secured loan vs. no guarantor loan


A secured loan is a loan where the lender requires something to act as security in case you can’t pay the loan back. This can be an asset you own, such as your home. Interest rates tend to be lower as there is less risk for the lender. This can be risky for the borrower though. If you fail to meet the payments you could lose your assets.


With a no guarantor loan, in many instances you do not need any form of security – although this can vary from lender to lender. This can be seen as a risk by the lender though. As a result, they can feature a higher rate of interest and a limit on how much you can borrow.


Typical criteria for a loan without a guarantor


As with most loans, there are certain conditions you need to follow. Here's what you need to apply for a no guarantor loan:


A strong credit score


A strong credit score shows lenders can rely on you to manage your debt. You can find out your credit score by getting a copy of your credit file.


There are three main credit reference agencies in the UK - Equifax, Experian, and TransUnion. You can use these agencies to obtain your credit file, check the details and get a complete picture of your credit history.


If you have a poor credit score, there are things you can do to improve it:


  • Register on the electoral roll
  • Check for mistakes on your credit file
  • Pay your bills on time


Good income/debt ratio


Your debt-to-income ratio (DTI) is the amount of your income that you use to pay off debts each month as a proportion of the total amount. The lower your ratio, the more likely you are to be approved for a loan. If the ratio is high, lenders may be less likely to grant you a loan.


To find out what your DTI ratio is, you need to work out your monthly costs. Do this by adding your debt payments and divide it by your gross monthly income. For example, if you earn £2000 and your debts were £1000, your DTI ratio would be 50%


Employed with a steady income


If you have a steady income, lenders may be more likely to consider your loan application. As well as ensuring you meet their affordability criteria, they want to know you can afford to pay back the money you borrow from them.


Please note that this can differ depending on your job status though and if you are self-employed you may not always be able to show a pattern of steady income.


Eligibility for non guarantor loans with bad credit


If you have bad credit your options may be limited. As such, there are some loans which come with low borrowing limits and high interest rates. You may still be able to apply, but be aware they could be more costly in the long run.


Some considerations when applying for a non-guarantor loan


Here are some things to consider before you apply for a loan:


Are the repayments of a non-guarantor loan affordable?


If you are thinking of applying for a loan, it helps to know if you can afford to do so first. There are a few things you can do to make sure this is the case. As mentioned above, you can check your DTI ratio to work out your monthly costs. The lower the ratio, the more likely you will be to afford it.


You can use a loan calculator to work out the monthly payments. This will give you a better idea of what the costs will be. It also allows you to work out your finances without running a credit check. This will only happen once you apply for a loan.


Please note that if you fail to meet any payments it can damage your credit score.


Is your non-guarantor loans lender charging penalties for prepayments?


If you think of repaying the loan early, some lenders may charge you a penalty for paying it off early. Therefore, you must read the entire set of conditions proposed by the lender when borrowing.



*Call charge information


Network charges may apply. Calls to 01 and 03 numbers from UK landlines and mobiles are normally included in free plan minutes if available; otherwise calls to 03 numbers cost the same as calls to 01/02 prefix numbers. Calls to 0800 or 0808 numbers are free from mobiles and landlines.