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
