Yes, there are a number of different loans without credit checks and instead, require some more financial security. Here are some options available through My Financial Broker:
This is where you have an extra person to be your guarantor and agree to ‘co-sign’ your loan agreement – so in the event that you cannot pay, your guarantor will step in and pay for you. This is very commonly used for people who are looking for bad credit loans, and it is usually assumed that the customer has bad credit or zero credit, so credit checks are not always used.
The guarantor, however, is required to have a good credit rating and ideally be a homeowner to provide even further security. The most effective guarantors are usually parents, siblings and close friends.
There are credit cards for people with bad credit, and to manage the potential risks, the rates charges are usually higher (around 38% compared to 0 to 18%) and your credit limit is typically lower than average. You may need to provide proof of income in order to be eligible, but similarly, this can provide a loan with no credit checking involved.
Whilst traditional personal loans are unsecured, you can add apply for a secured loans using something valuable such as your car, property or jewellery. You are able to use your valued item as collateral, which allows you to release money upfront, but if you fall behind on repayment, the lender can repossess all or most of the valued item. Examples of secured loans include logbook loans for cars and other vehicles, second charge loans and collateral loans too.