When you need quick financial help, loan application rejection is the worst thing to undergo. High street lenders provide loans based on well-defined criteria.
The criteria may include–a sound credit score, an excellent credit history, reliable income sources, and sometimes, they may ask for collateral too. Many applicants face rejections during the pre-approval phase owing to bad credit.
The pre-approval phase helps the individual check and analyze the loan affordability and other parameters. It may affect the credit score of the individual. It can reduce the possibility of securing loans in the future. Under this, many individuals avoid going for pre-approval.
You must think:
Can one get instant monetary help with a less-than-perfect credit score?
Yes, you can. Guaranteed loans can help you get minimal assistance regardless of your credit score.
How to get Instant Credit with a 97% Approval Rate?
Guaranteed loans are loans that a lender provides to the borrower based on the guarantee the borrower provides. As the name suggests, a borrower lacking a credible credit score requires additional concrete repayment proof to get the loan.
The lender, in this case, prioritizes a “guarantor” for approving the loan immediately. Lenders require security over the loan before approval. Borrowers with bad credit will need security. In case the borrower defaults, the guarantor is liable to pay the remaining amount. He should be someone from the borrower’s family.
According to FCA guidelines, the lender provides a guarantor some time to respond to the agreement. If the guarantor wishes to cancel the agreement, he must respond within 5 days of the approval notice.
But many do not have a guarantor to get instant help on bad credit. Do they share any options?
Can One Get Guaranteed Loans on Bad Credit Without a Guarantor?
Having a guarantor is the primary condition of securing a guaranteed loan with less-than-perfect credit. However, lenders offer other options in this case.
If you lack a guarantor, you can secure the loan amount by revealing affordability proof. Getting a guarantor on loan is the hardest part. So, if you lack one, here are other ways to secure a loan with these types of affordability proof:
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Reveal credible income proof
To get the loan, you can reveal credible income proof. If you work, reveal the salary slips for the loan approval. It acts as repayment proof if you lack an excellent credit history. The lender may provide you with the sum needed. One can instantly borrow up to £5000-10000 for immediate purpose by revealing minimal repayment proof. Having a good income (up to £40000) can help you get the loan immediately.
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Putting up a collateral/asset on the loan
If you lack a guarantor and do not have consistent or credible income proof to present before the creditor, the lender may ask you to stake collateral. The collateral could be anything from your assets.
Consider the total amount you wish to borrow and put-up collateral according to it. The collateral on the guaranteed loans on bad credit works as a personal guarantee. You may get the loan approval instantly by doing so.
How Does The 100% Loan Approval Process Work?
In guaranteed loans, a lender provides funds to the borrower having a low credit score. It is ideal for those who find it challenging to secure a loan from traditional lenders.
The guarantee on these loans means the lender provides loans with a good acceptance rate. The lender, in this case, does not share much risk in lending the loan. You can qualify for the loan if you have satisfactory loan affordability proof.
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What Loans Type Can One Qualify for?
There are multiple types of guaranteed loans one can qualify for by having a guarantor on the loan:
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Mortgage loans
Mortgage loans are the loans that an individual takes by mortgaging property. If a person has bad credit, he can qualify for the minimal loan amount by having a guarantor on the mortgage.
The FHA (Federal Housing Administration) acts as a guarantor on loans. Homebuyers who are risky borrowers might not qualify for a mortgage. Provide mortgage insurance proof to the lender if you hold any.
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Federal Student loans
The government provides a guarantee on federal student loans. To qualify, you must file a federal student aid application. One can repay the amount post-graduation or post dropping in the course’s mid. Here, one shares the flexibility to pay the loan hassle-free. The authority provides a grace period for the repayment of the loan.
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Payday loans
Sometimes an individual needs instant money help without waiting for the paycheck to hit the account. In this, one can borrow up to £3000 to meet the urgent requirement. One usually borrows payday loans for paying for a subscription, tuition fee, booking a ticket urgently, etc. The borrower pays the loan back with the next paycheck it receives.
Usually, the term period for the loan is two-weeks. You can get guaranteed loans on bad credit in payday loans, but missing payments can lead to insurmountable debt. Debt arrears on high-interest payday loans can affect the future credibility of the person. It is ideal to borrow a sufficient amount that you can repay without defaulting.
It is how you can get a guaranteed loan regardless of the credit situation. Check out your options and interest rates before signing off the loan agreement.
Emma Anderson is a highly accomplished Editor-in-Chief at 24cashfinances, renowned for her exceptional expertise in the finance industry. Holding degrees in Finance and Marketing, Emma has developed a deep understanding of the financial landscape, particularly when it comes to loans and personal finance.
Emma’s professional journey began as a financial analyst, where she gained hands-on experience in evaluating market trends and analysing investment opportunities. Emma’s enthusiasm for writing and her goal to educate and give individuals a voice motivated her to move into financial journalism. Her work has been published in popular magazines and she has produced thought-provoking pieces on various financial topics.