Life has become harder than ever, with thousands of people losing jobs because of the pandemic. The good thing is UK residents now have a lot of options when it comes to taking a loan to meet their financial needs. Thousands of lending companies now offer quick online loans.
Borrowers do not have to visit a bank or a lending institution to borrow money. As long as you have access to the internet, you can find and compare lending companies to find the best deals. Many lenders now promise guaranteed acceptance of loan applications. However, borrowers must meet some requirements to ensure that the lending company would approve their loan applications. Here are some ways to ensure guaranteed loan application acceptance and approval.
Have a Good Credit Rating
Lending companies are quick to accept loan applications from people with a good to excellent credit rating. Credit scores reveal how good you are in fulfilling your financial obligations. Lenders believe that even if you are in a hard situation, your commitment to honour your promise is one assurance that you would not break your promise to pay back what you owe them.
Lending companies can quickly check your credit score through the different credit reference bureaus in the UK, such as Equifax, TransUnion, and Experian. Credit scores range from 300 to 800. A score of 660 and above would assure you of loan application acceptance and approval wherever you want to take a loan.
Have a Guarantor
If your credit rating is poor, there is still a way for you to get quick loan approval, and this is by having a guarantor. A guarantor promises the lender that if you cannot repay what you borrowed, he will be the one to pay your debt.
However, your guarantor must have a good to excellent credit rating as well. If he owns a home, your chances of getting a loan acceptance and approval increase. Finding someone to take the risk of paying back your creditor for your debt might be a challenge. Having a real good friend or relatives close to you can become handy when you need someone to guarantee your loan.
Providing collateral or security ensures guaranteed approval and acceptance of a loan if you have a poor credit rating, and you do not have a guarantor. Most lending companies would accept collateral, such as your car, home, or land that you own. When securing a loan with a property, the amount you can borrow will depend on the collateral’s appraised value. You cannot borrow more than the value of your property. Once you use a guarantee, make sure that you can pay back what you acquired within the period stated in the loan contract. Remember that the lender can seize the property used as a security as payment for your loan.
Have Good Income
Another way of ensuring approval for your credit is to show proof of a good income. If you are employed, you can show your monthly payslip to prove that you are earning an income that is enough to cover your monthly payments.
For those who are self-employed, you may present a bank statement in the last three months before your loan application. In most cases, lenders would refer to your net income. The net income is the amount left after you have deducted your monthly expenses from your monthly earnings. If the remaining amount is enough to cover your loan payments, the lender will approve your loan.
If you do not have any of the requirements, you can still take quick unsecured loans but with small amount and high cost.