Is there such a thing as guaranteed loans for bad credit or is it just a myth? People with poor credit ratings would love to find a guaranteed loan, but sorry to say there is no such thing in the UK. Any lender that states they are able to guarantee a loan before they look at your credit rating and personal circumstances is not being very honest.
On the other hand, it is not all doom and gloom as we work alongside a panel of lenders who cannot guarantee loans but who do consider all circumstances. The lenders we work with:
- Will consider that your circumstances might have changed from when you obtained your poor credit rating;
- They will take a look at your credit rating, but may not look too deeply into it, depending on how much you want to borrow;
- Offer numerous loan options;
- Offer some of the most competitive rates based on your circumstances.
Don’t Confuse a Guarantor Loan for Guaranteed Loans for Bad Credit
A guarantor loan is a specific type of loan that is mainly applied for by people who cannot get a loan on their own. This is often due to not having a credit rating because you haven’t borrowed before or having a poor credit rating.
When taking out a guarantor loan you need to ask someone, a close friend or relative, to stand by your side as your guarantor. In the event you cannot continue meeting the loan repayments the guarantor takes them over. Due to this, you are not seen as being a big risk to the lender so they are more likely to offer you a loan. This type of loan may be suitable if you have a poor credit rating and want to borrow up to £15,000 and spread the cost for up to 36 months.
Other Types of Loans to Consider
While they are not guaranteed, you might want to consider a payday loan or short-term loan if you have bad credit. Both types of loan are easier to find approval for if you have a bad credit rating as only a small sum of money is borrowed.
With a payday loan, you might be able to borrow £100 to £500 and spread the loan over one to three paydays. This can be a great choice if you are met with a financial outlay that you had not planned for and your payday is still some time away. Interest is added onto the payday loan daily, so the longer you spread the loan over, the more the loan is going to cost you overall.
Short Term Loans
A short-term loan may offer between £500 and £1,000 with the repayments being spread out for up to 12 months. This can make borrowing a larger sum more affordable, but bear in mind the longer the loan is taken over the more interest it will incur.
Applying for a Loan
It has never been easier to apply for a loan if you make your application with our help. While there is no such thing as a guaranteed loan, we can assure you that the lenders we work alongside will consider all circumstances.
Tell us the amount you would like to borrow and how long you want to spread the loan over and we can help to match you with a lender from a panel of lenders in the UK. You get an instant decision and the lenders we work alongside offer some of the most competitive rates on loans along with numerous loan options.
Guaranteed loans for bad credit are a myth as there is no such thing, but with our help, your chances of obtaining a loan are increased.