Circumstances like unemployment, home loss, sudden death in the family, and business loss make one explore quick financing options. Given the distorted credit report, financial management, and severe business loss, people struggle to secure credit from a high-street lender. Per the theory, a guaranteed loan is a loan that a lender must provide to an individual without any credit check or objection with a 100% guarantee.
The first myth is- 100% application acceptance. No lender provides 100% loan approval. It is something you may not find in the entire UK. The reason is every lender has a cost to loan an amount to the borrower.
To reassure affordability, a lender must conduct a few checks. It helps him determine the requirement and the borrower’s potential to manage the loan repayments. In case of discrepancies in credit profile, he may either reject the loan application or switch to other ways to help the borrower qualify. These are loans with guaranteed acceptance.
What are loans with Guaranteed Acceptance?
Loans with guaranteed acceptance are the offerings that a lender provides, basing multiple parameters for the borrower. Under this, a borrower may qualify for at least one criterion. You can borrow a sum based on the following:
- Income
- Collateral
- Guarantor
Qualification on the income base
If you could qualify for any of these three criteria, you may get the loan. The procedure here works in a way that direct lenders evaluate the complete credit profile, incomings, revenue, and outgoings before approving the loan. You can qualify for the loan if the need is high, but income suffices. Here you may adjust the interest rates if your income is higher than the amount you need.
Individuals with low income and credit score
However, individuals applying for guaranteed loans are the ones with struggling credit scores and income. In this case, a lender may ask you to pledge collateral or an asset that equals the amount one needs to loan.
Here, the advantage is- the borrower may qualify for affordable interest rates. It reduces the overall loan costs. You may qualify for a flexible sum under this. These are generally individuals facing unemployment. If you need more than what you qualify for, collateral is a must. Identify your situation and financial circumstances.
24 cash finance helps unemployed individuals reach a potential solution basing their existing financial capability. We work towards providing a comfortable loan tenure after deciphering the requirement. We do not encourage anyone to loan up until it is utmost necessary. Instead, help figure out other means like- retirement accounts or emergency funds they may have to meet the requirements.
Individuals with low income, credit score, and no collateral
If the person lacks income and collateral, the guarantor enters the scene. It is generally the case for low-income bracket individuals with compromised credit scores.
It could be a student or an unemployed tenant figuring out the finances and seeking funds to meet the requirements. Gaining access to higher funds as a student could be struggling. Moreover, lacking a credit history or a poor one may not help him qualify for a higher amount,
In this stage, calling up someone to guarantee the loan can help. A guarantor is a person who may help assure the loan with his undented credit profile and satisfactory income bracket. A student may need a flexible sum for an educational tour/ group tour/ or overseas exposure.
Thus, having someone like- a mother, father, grandparents, brother, or sister to act as a guarantor can ease up the loan approval for him. Moreover, one may qualify for a loan at better interest rates and loan terms by having a reliable person on loan. If the student lacks the means or sufficient means to pay for the loan, the guarantor must abide by it. He must pay the loan in the event the student cannot.
If you are a student and the loan payments get delayed by the guarantor, we provide 2 payment holidays over the loan. We understand that maintaining contact consistently with the guarantor could be tasking, and reminding them to pay towards the loan is hard to utter. Thus, we do not charge interest on 2 missed payments in case of students and unemployed.
So, these are some conditions to get loans with guaranteed acceptance.
Without any guarantee, the loans are too good to be true.
How to improve your chances of qualifying for these loans?
The paragraph above states how you can qualify for a guaranteed loan. Well, if you do not want to depend on collateral or a third person for a loan, you could take the below actions to qualify for loans with guaranteed acceptance:
Go for a lower amount
In a situation where your part-time or full-time income does not leave you with much flexibility by the month’s end, fetch a small amount. Look for other ways that you could get the remaining cash. It could be asking your roommates, peers, or the landlord (if possible)
Explore short-term loans with bad credit options
In some situations, most lenders like 24 Cashfinances provide personalized solutions to individuals needing urgent cash. Knowing the terms and the loan API before applying for the loan is ideal. Many times, you may not need the money you apply for. The lenders here help one figure out the exact need, which may help you save on additional interest and loan costs.
Nothing like “guaranteed” loans exist
It is crucial to imbibe that every loan provider shares some eligibility and credit screening criteria before providing the loan. There is no one-size-fits-solution for individuals. Thus, identify your financials, income, expenses, and additional expenses (travel/ transport) and decide if you could realistically afford the loan.
If yes, you can apply per the conditions mentioned in the blog. Lenders generally ensure a lenient curve if you are a first-time borrower here., However, we do not lend without a credit check. There is nothing like no-credit-check loans exists. It is a part of our responsible borrowing.
How Quickly can I get the money if I qualify for any above conditions?
If you qualify for any conditions- income, collateral, or a guarantor, you could receive the amount the same day in your account number.
Bottom line
So, yes, you may get a loan on bad credit as per the conditions. However, you may have to pay competitive interest rates in case of a bad or poor credit score. At 24 cash finance, we work towards helping individuals reach suitable solutions given their circumstances and finances. There is nothing like “GUARANTEED LOANS” However, you surely can improve your chances of qualifying for the sum. Contact us to know how.