No Guarantor Loans in Australia – What You Need to Know

financial situation

When applying for a loan, it is important to make sure that you are aware of the current state of your finances. Not only can your credit score greatly impact your chances of being approved, but it can also limit the amount that you are able to borrow. In this article, we will be providing you with insight into how you can apply for no guarantor loans with ease. 

What Is A No-Guarantor Loan?

A no guarantor loan is a loan that you can apply for without the need for security or a guarantor for your loan to be accepted. A non-guarantor loan is a loan type that allows you as a borrower access to the funds in a financial emergency without the need for an additional person to co-sign on the loan, even if you have a poorer credit score.

Is A Loan Without A Guarantor Expensive?

No, a loan without a guarantor is not more expensive as the APR and interest rates completely depend on the state of your credit score as well as your monthly income at the time of the application. Though a guarantor loan does offer that additional layer of security to the lender, it is important to note that any loans such as this should only be used in a financial emergency. Regardless of whether this is a Payday Loan or a no credit check loan , there are several ways that you can use this loan type when struggling in a financial emergency.

What Can A Non-Guarantor Loan Be Used For? 

Though applying for a loan type such as this should be saved for financial emergencies only, many are still unsure what the loan can be used for. Though it may seem tempting to use a loan such as this for a holiday or for a new television to replace the old model current sat in your living room, it is important to make sure that you are using non-guarantor loans to cover emergencies such as emergency car breakdowns or home and boiler repairs that you may not have the money left in your budget to cover.

How to Apply for This Loan Type

Should you find that the loan type is the right one for you it then comes time to apply. With several lenders allowing for a quick application process through their online platform, applying for a loan type such as this could not be any easier. With a simple form to fill out at the time of application providing them with information that they need on their monthly income as well as the current state of your credit score. From there, the lender will check your credit score and eligibility to determine if you can afford repayments, with the money being paid into your account if you have been successful in your application.

Though this application process may take time, it is important to make sure that you are considering the current state of your finances before applying as this will aid in ensuring a successful application.

Recommended Reading: 3 Steps To Clean Up Your Credit Report

Don’t Make These Top 5 Money Mistakes

money mistakes

We all make mistakes with our finances from time to time – we’re only human after all! While we may have the odd slip from time to time, there are a few major money mistakes that you need to avoid to prevent yourself from falling too deep. By slightly changing your money habits, you can avoid these mistakes and save yourself some serious cash.

1. Making Too Many Minimum Repayments

When it comes to hefty debts, it can feel impossible to shift. It may be tempting to pay off just the minimum amount each month, but this head-in-the-sand strategy will mean that you are left paying interest for much longer, resulting in a higher overall bill. While it is acceptable to pay the minimum when necessary, you should try to pay more than the minimum on the majority of occasions to save you more money in the long run.

2. Not Checking Your Bank Statements

Checking your statements has become a lot easier in recent years, thanks to the introduction of online banking and banking apps, which means there is no excuse for not keeping track. Despite how easy it is to check your statements, many people just look at the big number to see how much cash they have left. It’s a good idea to look through and see where your money is going and spot any mistakes.

3. Not Checking Your Credit File

Not only is it easy to check your bank statements, but you can also check your credit file for free through Experian, Equifax, or TransUnion. It’s essential to keep an eye on your rating and spot any areas for improvements or mistakes, as they could affect your credit applications in the future. While it’s best to have a good credit score that is well maintained, there are credit options available for poor credit, such as no credit check loans or guarantor loans.

4. Not Having an Emergency Fund

Life can be unpredictable when you least expect it, so even if you feel like you are living within your means, this could be dashed at any time. It’s worth putting money aside when possible to help cover any unexpected costs, like a broken boiler or emergency car repairs. In theory, you should aim to have a few months of living expenses in an accessible account, but anything you can put aside may help. Without an emergency fund, you may need to borrow money, but it’s always best to use your own cash where possible.

5. Not Switching Providers

From banking to utilities, there is something to be said for switching providers. In days gone by, there may have been some benefit in being a long-term customer, but these days, new customers tend to get the best deals and options. You should use price comparison sites to work out whether it would be beneficial for you to switch bill or banking providers to get more affordable prices. You can even call your current providers and explain why you are thinking about leaving, as many may miraculously drop the prices for you.

For more support and information on money mistakes, please visit the Money Advice Service.