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Long Term Loans No Guarantor
18 Jul 2018

Long Term Loans No Guarantor Has The Answer To Everything

When you find yourself in need of extra funds, what solution should you consider? It doesn’t matter why you need the cash, it could be an extension on your home, a new car or even funding that dream trip abroad you always promised yourself. Whatever you want the money for there are a few ways to go about it, you could try an overdraft, payments on a credit card or usually the cheapest option, long term loans no guarantor needed. But what exactly are these types of loans?

Understanding Long Term Loans No Guarantor Required

Long term is a bit of an open-ended expression as it can mean anything greater than a year and range up to longer than 20 years. However, when you are considering taking out one of these, you need to be happy with the length of time that your particular loan will run for. The interest rates and terms will all be variable depending on this length, so in order to find the perfect loan for you, you will need to take this into account.

Sometimes, particularly if you don’t have a good credit rating, a lender will want you to take out a loan with a guarantor. These are usually family members or friends that can promise to guarantee that the loan will be paid back in full, and if they have a better credit score than you it might reduce the interest rate and improve the terms of your loan. However, we understand that this is not a possibility in many cases, which is why we here at Bonsai Finance have connections with lenders that will be perfectly happy to supply long term loans no guarantor needed.

Should I Look for a Long Term Loan No Guarantor Needed?

If you are looking for any type of loan, you need to make sure you know how much you need to borrow, how much you can afford each month for the repayments and make sure you check the terms of any potential loans. The longer you take to pay back a loan will increase the amount of interest you pay, however, it will reduce the monthly installments, so take this into consideration when you are calculating how much to apply for.  Having said that, borrowing for a longer term can make more financial sense than a short term loan with high interest because you will have a steady repayment schedule and can manage your money more easily.

How Much to Apply For

When considering a loan like this, you need to take into consideration the amount you are borrowing. Weirdly, because of different thresholds for interest rates it can sometimes be less expensive to borrow more money than you planned. If a lender were to offer two different interest rates for borrowing a lump sum, an interesting situation can arise if you wanted to borrow an amount close to the threshold where the rates change. For example, if loans for less than £2000 had a rate of 6% but loans above that amount had an interest rate of 4% for the same repayment period, you could find that a loan of £1950 ends up costing you more than rounding it up to £2000. In every case, make sure you work out how much exactly you will be paying back, as there might be a way to reduce it somehow.

Long term loans no guarantor are an excellent way to make sure you have the funds ready for a large purchase or sudden, unexpected expense as long as you make sure you can pay back the installments when they are due. Bonsai Finance can help you in that you will be given the choice from only appropriate loans that you will be able to afford from our many trusted connections in the financial industry. If you fill in our simple application form, we can select exactly those lenders that can supply the perfect loans to suit your requirements at reasonable rates.