Many times we take a loan from different lenders and due to one or another reason we fail to repay the amount on time. Lenders wait for us to make the payment and being overloaded with financial obligations we fail to make the payment. In this case, lenders file a complaint against us in a county court regarding our failure of loan repayment. And the respective court issues a CCJ against us to pay the amount within a specified time as per court order.
A CCJ (County Court Judgment) can often be a hurdle to getting a loan but that is not always the case. Certain types of loans may still be available for you even if you have a CCJ against you.
CCJ Loans without Any Guarantor
Generally, the loans designed for borrowers with bad credit and CCJ are combined with some sort of security or assets like car, home, etc. There are also some loans which need a guarantor to back up the loan agreement. Through these types of security, lenders try to compensate for the risk associated with the loan. Finding a guarantor is not an easy task and there is a strict rule set out by the lenders for a person to be a guarantor.
Now if you want to take an unsecured loan and you are unable to arrange a guarantor for you then you can consider CCJ loans with no guarantor from direct lenders as a feasible solution.
Things to Consider Before Taking a CCJ with No Guarantor
If you are planning to take a CCJ loan without a guarantor then there are many things which you have to consider. This will help you in making a decision about whether this type of loan is suitable for you or not.
- Rate of Interest
You would definitely want to think about the interest rate which you will be paying for the loan if you are comfortable with the terms and conditions of the loan. The rate of interest is very important and obviously you would like to have the lowest rate. Further, you may also want to know the type of interest rate attached to your loan. Normally, lenders offer fixed interest rate and variable interest rate.
- Fixed Interest Rate: This means that the rate of interest will remain the same throughout the loan duration.
- Variable Interest Rate: The interest rate which you are getting charged initially may go up and down according to the market’s condition.
Generally, the variable rate has a lower interest rate in the beginning but since they are fluctuating in nature, there is a chance that it might go up over the duration of your loan term. Also, the interest rate in the UK is very low these days so it might go up during the tenure of your loan.
- Loan Duration
Apart from the interest rate, you may consider the duration of your loan as well. Different lenders who provide CCJ loans without guarantor have different terms for their loans. There are short term loans which last only about a year and there are long term loans which last as long as for 7 years. The shorter the loan duration, the less interest rate you have to pay over the course of the loan term.
However, there is a drawback of short duration. Shorter duration means high monthly repayment and this is something which you should consider carefully. But whatever loan term you choose, make sure it is comfortable for you and not impacting your monthly budget.
Where to Find It
In today’s time, finding a CCJ loan with no guarantor may not be as hard as it was before. There are many lenders who will provide you loans even if you have a CCJ against your name. These include online lenders or direct lenders who offer short-term as well as long term loans despite a CCJ.
Hence it is always better to search for these types of loans on the Internet because most of the lenders have their website and they conduct all processes online only. They have a very quick and fast approval process. You can get the money into your bank account within 24 hours after approval.
In conclusion, we can say that there are many lenders in the UK who are willing to help people with a CCJ. The only thing which you need to take care of is timely repayment of the loan. If you again fail to make a payment on time then it will have very serious consequences.