You may have seen offerings like “100% guaranteed approval loans”. It is natural to get swayed away by such offers. You should be familiar with the fact that no lender can provide 100% approval without carrying out minimal checks.
So, yes, you can get a guaranteed loan if you meet the income and other eligibility criteria here. These loans are usually short-term, ideal for people with low-income and credit scores. You may get one without detailed credit checks for your situation. Thus, these are also known as credit footprint-free loans.
However, you should know a few aspects before availing of loans with no credit checks for your needs. These are guaranteed approval loans because one has the highest chance to qualify here.
Knowing some aspects will help you decide whether the loans suit your needs.
What you should know to get 100% approval loans?
In some situations, you need swift cash access to cash without credit score hurdles. It can be anything from booking your entrance fee at the last minute or catering to any medical emergency. Though these 100% approval loans are accessible to every financial situation, they may not be ideal. Here are some aspects to know before applying for guaranteed approval loans.
You should be a permanent UK citizen
It is the primary eligibility to qualify for short-term loans. Any 18+ plus UK citizen may qualify for the loan for immediate purposes. If on a visa, you may need help to get the loan.
However, as customer-friendly lenders, we provide small loans to students or earners on visas. The approval is subject to some regulations.
The loan is guaranteed only for a few months
As the name suggests, these loans are ideal for only time-sensitive needs or emergencies. You cannot use it to purchase a car or renovate a home.
You can use it for critical home repairs like- plumbing issues, replacing backsplash, or circuit repair. Usually, one can borrow the loan for 12 months (maximum).
The loan term one gets depends on the credibility and income one has to support the repayments.
Ideal for bad credit individuals
Individuals with low credit history may need help getting easy approval on loans. In such cases, meeting emergencies with limited cash becomes tasking. The best part about guaranteed loans is that you can get approval on these loans even if you lack stellar credit history. The primary concern and basis for loan approval here is affordability.
You get it if you have sufficient income with consistent and detailed employment history. Individuals with bad credit history can fetch economic interest rates if they have sound income and disciplined credits in the credit report.
Regular payments improve credit score
It is a lesser-known fact that ensuring payments on short-term loans improves your credit score. For this, you can budget for the loan payments. It is easier to budget with fixed interest rates. You can save some of your regular income towards repayments and pay comfortably.
Improved interest rates help you qualify for better terms and achieve other life goals without much stress.
Ensure correct information while filing an application
Although meeting the minimum eligibility criteria improves your chances of qualifying, it does not guarantee one. To get swift approval, you should provide authentic and spell-checked details. As a trustworthy lender, we prioritise the accuracy of details mentioned in the application before approval. You may miss the approval if you skip any detail, add it wrong, or miss-spelt one.
For example, you must submit accurate details per your knowledge like-
- Name
- DOB
- Contact number
- Email Id
- Income details
We may send the application back to review again in case of any issues for you to recheck and send again. It may extend the time to get the cash. Recheck the details before sending it to avoid the delay when you need it the most.
Pay your utility and credit card bills timely
Per the no-credit-check loan standard process, “we ask for employment proof in the form of regular/part-time income along with a detailed analysis of monthly expenses.” Before approval, we analyse your income, monthly liabilities, emergency expenses, and disposable income. You can get swift approval if:
- You have no outstanding debts.
- You pay your bills timely.
- You have limited or no credit card dues.
- You have limited CCJs
Your monthly repayments do not consume more than 30% of your disposable income. Disposable income is the amount you have after-tax deductions, paying the debts and liabilities monthly.
Borrow the amount responsibly
It is another important aspect of guaranteed loans. We do not approve every application despite the fact that- these loans share 97% of the approval rate. Why? It is because the borrower’s cash need turns out to be high than what he can realistically afford. We instead prioritise individuals borrowing as per their finances.
For example, “if we receive two applications with almost the same credit scores and income (£5000), we prioritise the amount one needs to approve.
If you need £2500 while another person with the same finances wants £1500, we approve the latter. The reason is – the latter person has increased chances to pay the debt than the former.
Although we help you qualify with limited finances, granting more than you can afford may hamper your budget and family expenses. Hence, we prioritise customers’ peace and financial well-being by doing so.
You can borrow right by identifying your monthly liabilities and disposable income. It would also help you avoid unnecessary interest costs.
Prepayment penalty impacts credit score
A minor mistake can lead to unnecessary costs regardless of the fact you made timely payments on the loan. One of the primary reasons for that can be a prepayment penalty. It is the penalty that some loan providers impose if the borrower overpays the amount. It may impact your credit score instead of improving it.
Thus, always read the terms in the fine print before granting your approval.
We do not charge any prepayment penalty on loans. You can always ask about the loan costs involved.
Bottom line
If you have a short-term cash need, guaranteed and no-credit-check loans can help. Ensuring an incredible financial profile with recurring income and limited expenses can help you find affordable interest rates on these guaranteed loans.
