8 Best Loans for Bad Credit with No Guarantor (2018)

8 Best Loans for Bad Credit with No Guarantor ([current_year])
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Brittney Mayer
By: Brittney Mayer
Posted: January 16, 2018
BadCredit.org's popular "How-To" series is for those who seek to improve, rebuild or better understand their subprime credit rating.

Not that long ago, the quality of your letters of reference — and the reputations of their authors — was the single standard by which employers gauged the abilities and general hirability of a new employee. Without someone else to vouch for your experience and qualifications, finding a job was exponentially more difficult.

Similarly, when you don’t have a long, healthy credit history, finding a loan without someone to vouch for your ability to repay — i.e., a cosigner or guarantor — can be a challenge. Your bad credit may not disqualify you from finding the financing you need, however. Options for bad-credit loans, without a guarantor, are out there.

Installment Loans | Short-Term Loans | Credit Card Loans

Best “Installment” Loans with No Guarantor

Although there are certainly times when you need just a few hundred bucks to make it through an emergency, many of the things for which we need financing tend to come with more than three digits on the price tag. Installment loans are literally made to finance large purchases, and you can often find personal installment loans that range in size from $500 up to $35,000 even without a guarantor.

While installment loans tend to have the lowest APRs of most types of financing, having poor credit will mean paying higher APRs than those with higher credit scores. Be sure to compare rates from different lenders to ensure you get the lowest possible rate. You can use an online lending network, like our top-rated picks below, to compare quotes from multiple lenders with a single application.

   
★★★★★

4.9

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$500 to $10,000 5.99% - 35.99% 3 to 72 Months

See representative example

+See More Personal Loans for Bad Credit

Another thing that makes installment loan good for large purchases is that installment loans are structured to be repaid over a longer period of time than other types of financing. Most personal installment loans will extend at least three to six months, but they can often be obtained with lengths up to 60 months.

At the same time, while extending the length of your loan can reduce your monthly payment, it isn’t always the best choice for those looking to save money. That’s because the longer you extend your loan, the more that loan will end up costing you overall thanks to the additional interest payments you’ll need to make.

As an example, consider a hypothetical borrower, Bernard, who takes out an installment loan for $5,000 with a 15% APR. If Bernard chooses to repay his loan in five years, his monthly payment would be about $119, but he’d pay around $2,167 in interest fees over the life of the loan. Were Bernard to repay his loan in just two years, however, his monthly payment would be approximately $242, and the loan would cost him around $818 in interest fees.

Best “Short-Term” Loans with No Guarantor

Where installment loans work best to finance large purchases and/or those you need to pay off over months or years, short-term cash advance loans are best when you only need $1,000 or less. You should also be sure you can repay your loan — plus financing fees — quickly, as the typical short-term cash advance loan extends from seven days up to six months at most.

To obtain a short-term cash advance loan without a guarantor or collateral, you’ll likely need to meet the lender’s minimum income requirement, as well as showing you have held your current employment for at least 90 days. One of the easiest ways to compare your options without needing to fill out multiple applications is to use an online lending network like the expert-rated providers below.

  • Short-term loan of $100 to $1,000
  • Bad credit is no problem
  • Large network of lenders
  • Loan decision as fast as a few minutes; funding as soon as next business day
  • Required: Income of $1000+/month and at least 90 days on job
  • Click here for official site, terms, and details.
             
★★★★

4.0

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$100 to $1,000 200% - 2,290% Varies

See representative example

+See More Personal Loans for Bad Credit

Given that short-term loans are designed to be temporary financing solutions, they tend to have some of the highest APRs among lending products. This is due to the fact that short-term loans generally charge financing fees as a flat rate based on the size and duration of your loan, rather than calculating interest fees based on a predetermined APR like loans and credit cards.

Furthermore, unlike installment loans that are repaid via multiple payments over the course of the loan, short-term cash advance loans are typically repaid as a single lump-sum payment that includes both the principal plus any and all applicable financing fees. While borrowers can usually extend the loan to give themselves more time to repay, that extension will come with additional finance fees.

Best “Credit Card” Loans with No Guarantor

Given the similar feel to using credit cards and debit cards, it can often be easy to overlook the fact that credit cards are credit lines, much like small loans that we take out every time we charge a purchase to our cards. Depending on the amount you need to finance — and how long you’ll need to repay it — credit cards can be a viable and, sometimes, better, financing alternative to traditional loans.

This can be particularly true when it comes to short-term financing, as many credit cards — even those for consumers with poor credit — charge lower interest rates than some short-term cash advance loans. What’s more, credit cards are revolving credit lines, meaning they can be reused once you’ve paid them off. Our top credit cards for bad credit include a variety of unsecured options that won’t require a deposit.

  • Checking account required
  • Application response in 30 seconds
  • Know the score! Quarterly FICO score on your monthly billing statements
  • All credit types welcome to apply
  • Your First PREMIER Bank credit card activity is reported to the Consumer Reporting Agencies each month. Making your payment on time and keeping your balances low relative to the credit limit will result in positive marks on your credit report
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
6 minutes See issuer website Yes 9.5/10
  • Easy application! Get a credit decision in seconds.
  • Build your credit history – Fingerhut reports to all 3 major credit bureaus
  • Use your line of credit to shop thousands of items from great brands like Samsung, KitchenAid, and DeWalt
  • Not an access card
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
5 Minutes See issuer website Yes 9.0/10
  • All credit types welcome to apply
  • Monthly reporting to the three major credit bureaus
  • Fast and easy application process; results in seconds
  • Use your card at locations everywhere that Mastercard® is accepted
  • Free online account access 24/7
  • Checking Account Required
  • Click here for official site, terms, and details.
★★★★★

4.7

Overall Rating

Application Length Interest Rate Reports Monthly Reputation Score
9 Minutes See terms Yes 8.5/10

+See More Credit Cards for Bad Credit

In some cases, you may be able to use your credit card to manage your financing needs without being charged interest fees at all. Most credit cards provide a grace period, which refers to the time between when you make a purchase and when your bill for that purchase is due. As long as you pay your entire balance before the end of the grace period, you won’t be charged interest on that balance.

One thing to note, while unsecured credit cards won’t require an initial deposit to open, many cards for those with poor credit will charge an annual fee, which will generally be charged when you activate your account (and then each year on your account anniversary date). You may also need to provide a processing or program fee to establish your credit line.

Improve Your Credit for Better Loan Opportunities

Before the era of LinkedIn and online compatibility quizzes, the best way to find a job was to have a solid letter of reference from someone with an impeccable reputation. In the consumer credit world, having a guarantor to vouch for your ability to repay a loan is definitely one of the easiest ways to obtain a loan with bad credit.

But being a guarantor comes with risks, and not everyone has someone with excellent credit to call on in an emergency. Thankfully, a variety of lenders and credit card issuers specialize in helping those with poor credit find the financing they need to get through a tough spot — and, with responsible use, maybe build a little credit along the way.

Of course, you should always remember that loans and credit cards are all forms of debt, and you should always borrow responsibly. This includes paying your bills on time and as agreed to every billing cycle, avoiding any unnecessary debt, and being prudent about opening new credit accounts.