August 22, 2023
Sometimes, you need cash immediately without worrying about your troubled credit score or pending debts. Still, the fact is that past credit mistakes like- missed payments, CCJ, loan default, etc., limit your chances for loans. Such parameters in the credit report impact your score. Consequently, you may spot constant application rejections under these circumstances.
In such a scenario, guaranteed loans meet the requirement aptly. How? It is because you can get up to £1500 for emergencies with 36 months of flexible repayment period. However, provide income proof of above £800/month to qualify.
What does a Guaranteed Loan imply?
Guaranteed loans help one get instant cash regardless of credit history. It prioritises income over credit score as the primary indicator of affordable finance. Individuals earning regular or part-time income may get guaranteed same-day cash.
These are short-term unsecured loans that have competitive interest rates. The fixed interest ensures you pay the same amount throughout the agreement tenure. It is possible if you do not miss any payment during the term.
Do 100% Guaranteed loans exist?
You may get loans for guaranteed approval if you meet the basic criteria something like passing the standard credit screening.
No lender provides instant cash without a minimal credit check. Credit check helps the lender analyse the amount you can realistically afford. It also prevents the borrower from unnecessary debt.
A loan without necessary checks may hamper the lifestyle of the person. You may not spot any lender providing 100% guaranteed loans without credit screening.
In the nutshell,”100% guaranteed loans” imply that one may get the loan if he meets the basic income criteria. Though basic requirements may stay the same, the income requirement may differ from lender to lender.
What purposes can you use a 100% approval loan for?
You can use the loans for any short-term purpose. It is specifically ideal for emergencies. You cannot borrow it for a car purchase or buy new furniture. Here are some common uses of these 100% approval loans:
¬ Medical consultation
¬ Car repair
¬ Debt consolidation
¬ Paying credit card bill
¬ Study expenses
¬ Filling the funding gap
How does guaranteed loan work?
Loans with guaranteed approval work exactly how they sound. Lenders approve the loan application if you meet the fundamental income criteria. It is the best instant finance solution for one with low credit scores.
Furthermore, responsible lenders conduct required credit checks to analyse affordability. The credit check does not impair your credit score. It implies you can qualify with the same credit score at the time of application. It is known as a soft credit check. Individuals having insufficient income or too many delinquencies on credit report suffers rejection.
Alternatively, individuals with regular income and limited expenses qualify. If your expenses are below the amount required and income, you may qualify for guaranteed acceptance loans with lenders. Acceptance is based on your affordability and income.
You get the money immediately after you qualify for the loan terms. Follow the agreement to make regular payments until the loan term. You can split the cost of the amount and pay in bits until the agreement. The repayments stay fixed on the loan. If you miss a payment, the interest costs rise. It means your overall loan amount increases.
Can I get loans with guaranteed approval as an unemployed?
It is evident from the above that one must have income evidence to qualify for guaranteed loans. It is the primary criterion to get quick cash. However, some individuals lack a regular income source. These can be students, individuals working on a business idea or facing jobless times.
In unemployment, one faces stressful finances. These loans may help you in case you need a small amount. The unemployed can qualify with part-time income subordinated with benefits. However, getting instant cash just on benefits income can be difficult. Some lenders may provide up to £800 on benefits income.
Alternatively, if you do not leverage benefits or have any part-time income source, a guarantor is mandatory. The lender needs a surety of getting the dues back. A guarantor having the required income parameters may help you. He can help you in many ways like:
- Qualifying at a low interest rate
- Make payments on your behalf
- Prevent your credit score from falling
- Help you meet your need instantly
Thus, in this way, you can qualify for guaranteed acceptance loans as an unemployed. You would need a guarantor if you need a higher sum than £1500.
How to get guaranteed loans affordably with bad credit?
Though credit score is not the prime thing that lenders consider, it may impact the overall costs. Individuals having missed payments, CCJs, loan defaults, credit card defaults or bankruptcy in the credit report may encounter competitive interest rates on these loans. Lenders consider a poor credit profile as risky on these accessible loans.
If your income and credit score both are low, then interest would be high. Alternatively, with consistent income, the low credit score would not affect the application much:
Nevertheless, if you want to get better interest loans despite poor credit history, the below tips may help:
- Explore the lowest APR loans
Exploring the best and cheapest loans is the primary thing to do here. APR is the total loan costs that include interest rates too. The higher the APR, the higher the overall loan amount.
To grab budget-friendly rates, identify the best-guaranteed loans for low credit scores. Go with the one offering the cheapest APR.
Identify other things like- additional costs. It may include a pre-payment penalty. If you spot any, switch to the next best alternative.
- Borrow low amount than you need
Borrowing less than what you require can help you reduce additional interest costs. It may be helpful for individuals with low income and strict finances.
Applying for a lower amount helps you save more down the lane. You can use this amount for some important purpose.
Moreover, it increases your chances even with a low credit score.
- Update information and clear some dues
You may get 100% approval loans by updating your information on the electoral register. Individuals with limited income may win over the lender by proving their citizenship.
Here, you can fetch affordable rates by further reducing your debts. It may not be possible to clear all debts. Check some to pay. It could be anything from utility bill payment, credit card payment, rent payment, etc. Doing so may help you grab economic rates. Paid bills and loans reveal confidence and reliability in payments.
Alternatives to guaranteed loans to avail on bad credit score
If guaranteed loans do not align with your needs for bad credit, tap other sources. Some individuals may need more flexibility over the loan amount, while others may want lower interest rate loans.
Whatever the goal, you can tap the below options. It especially helps you if searching for guaranteed loans in your area:
1) No guarantor loans
These loans are ideal for individuals with good salaries needing immediate cash. You can finance your needs up to £10000 without any guarantor or third-person involvement.
2) Loans for people on benefits
It is a short-term loan exclusively for unemployed individuals leveraging government benefits. Here, you can get the cash even if you have government benefits as the sole income.
3) Bad credit loans
Bad credit loans from direct lenders can help whether you have short or long-term requirements. It is exclusively for persons with low credit scores. Individuals with no credit history or low income may also spot affordable options. You can use it to buy a car or to finance emergencies. However, you may get high-interest rates here.
Guaranteed loans are short-term financial solutions that one can get only on authentic income proof. The guarantee word here means “the affordability to pay the loan back”. It implies- you can only get a loan if you can repay it without impacting your budget’s bottom line. Identify your needs and get instant cash without worrying about a low credit score.
Ellie Brown is a proud resident of the UK and love to be a content writer and editor for the last 9 years. Writing blogs and articles is her passion that one can explore at the top blogging platforms. Ellie holds a key position at Florafinance as the Senior Content Editor and Chief Loan Consultant, leading a team of more than 70 professionals. Ellie Brown covers the major aspects of the UK’s lending industry in her blogs and guides loan seekers who come at Florafinance to apply for a loan. She possesses the Post-Graduate degree in Finance and Investment.