What Are Guaranteed Loans?
When you take out a loan, you’re borrowing money for a set period during which you have to repay the full amount along with applicable fees and interest charges to the lender. It’s an urgent fast cash solution when you’re in financial trouble.
In reality, there is no such thing as a ‘guaranteed loan’. Some loans, such as those for bad credit, have higher acceptance rates than others, but it’s up to the lender to accept or decline your loan request in accordance with whether or not you meet the criteria.
Instead of falling for "guaranteed loans", try to apply through an online broker that has partnered with several of the UK’s most trusted payday lenders, just like what FastPaydayLoans does. This way, you’ll know the loan types you can apply for and will greatly improve your chances of being accepted.
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Can I Get Guaranteed Loans If I Have Bad Credit?
Even with a great credit history, you’re never 100% guaranteed a loan.
Lenders require applicants to meet their eligibility criteria to borrow money. These factors include being aged 18 or over, having UK residency, bank details, credit history, and a stable income source. Now, even if you don’t have an outstanding credit history, you can still apply for a loan, and by opting for loans for bad credit, you have higher chances of being accepted as well.
Again, any lender offering guaranteed loans for bad credit is likely to be unauthorised and should be given a wide birth. You can apply for loans for bad credit to increase your chances of acceptance if your credit history doesn’t back you up as a responsible borrower, but don’t fall for one that guarantees it.
Do You Offer Guaranteed Loans in the UK?
The official lending policies and regulations in the UK do not allow guaranteed loans under any circumstances. Any lender offering guaranteed loans in the UK is going against the code of conduct according to Financial Conduct Authority (FCA)’s guidelines.
These guidelines are set to protect consumer rights, and falling for a ‘guaranteed loan’ could put you at risk. For instance, a lender operating outside these guidelines may charge higher interest rates than the maximum set under these regulations.
In light of responsible lending practices, we don’t offer guaranteed loans. As an online broker, FastPaydayLoans recommends reputable UK lenders who abide by FCA regulations and only accept loan requests that uphold the eligibility criteria.
Our lenders also consider whether the borrower can repay the loan through sustainable income without falling into another accruing debt cycle. Your chances of getting a loan request approved are still high though, as our lenders don’t just look at credit ratings but collective factors altogether.
|Why Trust FastPaydayLoans?|
|How much can I take out?||£100-£5000||No obligation quotes|
|Representative APR||49.7%(variable)||Competitive rates|
|Will bad credit be accepted?||Yes||Lenient requirements|
|What are the repayment periods?||1-36 months||Flexible loan term options|
|How can I apply?||Apply online||24/7 available|
How to Apply for a Guaranteed Payday Loan?
The procedure for applying for payday loans and traditional bank loans is different in several ways. For instance, the former takes less time than a normal bank loan, mainly because the entire process for payday loans is online, without having to visit a physical branch.
Although the procedure may differ depending on the lender, the basics are mostly the same.
Before you set out to apply for a payday loan, make sure you are eligible for it. Another advantage of payday loans is that there is a higher chance for you to get a loan from online loan providers than from banks. Even if you have a poor credit history, you can get your application approved by payday lenders as long as you’re eligible, although they will ask for higher interest rates than normal.
How To Increase My Chances Of Getting Approved?
Although it may sound simple, the first step that can help increase your chances of getting approved is to make sure you meet all the requirements.
Every lender has its own eligibility criteria, which is why it is important to do your research first to make sure you fulfil the criteria set out by the lender you’re interested in. Doing so also helps you choose your payday lender more efficiently as everyone has different preferences and needs.
The basic eligibility criteria that every lender asks for are as follows:
- You are a permanent resident of the UK
- You are over 18 years old
- You have valid contact details
- You have a verified bank account and details
If you decide to apply with FastPaydayLoans, you can significantly increase your chance of getting approved by making sure you only apply for what you need. Opting for an amount that will be enough to cover your financial emergency and can be repaid on time will help improve your chances of being accepted.
Take a look at your upcoming expenses, and see whether the amount you've chosen to borrow fits your budget. Doing this should help to boost your chances of being approved for the type of loan you need.
How much would you like?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
Frequently Asked Questions
1. What loans are guaranteed?
Guaranteed loans don’t exist. At best, you have a higher chance of acceptance rates with online lenders compared to traditional lenders, especially if your credit history has taken a hit and you’ve applied for a bad credit loan. Additionally, applying through an online broker lets you gain insight into which loans you’re eligible for and have higher chances of getting.
2. Is a guaranteed loan safe?
Any lender offering guaranteed loans is never safe to borrow from. Not only are you likely to fall for a scam or get involved with a lender’s malpractice, but it goes against the Financial Conduct Authority (FCA)’s guidelines in the UK as well.
3. What are the criteria for guaranteed loans?
There’s no hard and fast rule that fulfilling a certain criterion will lead to guaranteed loan approval. However, to apply for and increase your chances of getting any loan, you need to be eligible according to the lender’s requirements, which primarily include legal age, residency, a bank account, and stable income.
4. How much can I borrow with a guaranteed loan?
The amount you can borrow depends on the loan type, the amount you require, and the amount your lender thinks you can afford. Certain loan types guarantee fast decisions, including payday loans, logbook loans, or short-term loans.
5. Does getting a guaranteed loan affect my credit rating?
Borrowing an online loan does affect your credit rating, but the impact it has largely depends on how you manage the loan. Whilst the initial application will likely knock your credit score, managing your loan well will show you to be a responsible borrower and could boost your score over time. Delayed or missed repayments increase your debt and lower your credit rating in the long run.