How to Avail of Guaranteed Acceptance When Applying for Loans


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.

Have Collateral

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. 

Top Reasons to Get a Personal Loan


A personal loan is a popular option among UK residents in getting the funds they need for big purchases, debt consolidation, and other expenses that require a significant amount. A borrower can take a loan of £1,000 to £35,000 and pay it back plus interest in fixed monthly instalments for one to seven years. Most lending companies apply a fixed interest rate for a personal loan. However, you must check with the lending company what kind of interest rate they use. Aside from the more substantial amount that you can borrow and the easy payment plan compared to other loan types, here are the top 5 reasons why most UK residents prefer personal loan.

Moving Costs

The cost of moving from one place to another depends on the distance you have to travel to your destination. Relocating to another city across the state may cost more than what you can easily afford. Taking a personal loan could help you cover the costs of moving such as transporting your household belongings and paying for storage space for the items you cannot bring with you, but you cannot discard easily. You might need to buy new furniture and appliances for your new home.

Moving house can be expensive.

House Remodelling

Have you been living in your old house for decades and planning to remodel it? Such a project may require considerable expenses. If you do not have the cash to finance a remodelling project, taking a personal loan could help. This type of credit offers significant amounts that could be enough to have a complete makeover of your home.

You can replace the decaying parts, change the window and door frames, repaint the whole house, or add an extra room to accommodate your growing number of family members. A personal loan does not require security. Not using your house as collateral will lead you away from the risk of losing your home if you cannot pay the amount that you borrowed.

Debt Consolidation

Having several small loans to pay can be stressful and pain on your budget. Thinking about paying a loan this week, another the next week, and so on can put your finances in jeopardy. Why not take a loan and repay all your debts? This way, you would only have to think about one payment date, which will allow you to manage your finances efficiently. Since you can take a personal loan of up to £35,000, it would be enough to pay various lenders.

After consolidating all your debts, you would only be worried about paying your loan once a month. The amount to pay will be predictable because of the fixed instalment payments. It would be easy to control your spending and allot money for your monthly amortisation so that you will never miss a payment.

Pay for Large Purchases

Repairing your old car can be more costly in the long run than buying a new one. Why not take a personal loan to pay for a new car? The debt comes with interest, but the cost of borrowing can still be lower than the money you must spend every time your car malfunctions. Besides, you could lose your job or essential appointments when your vehicle breaks down on the exact day you badly needs it.

Have a Dream Vacation

With a personal loan, you are free to use the money that you borrowed for whatever purpose you have in mind, be it a vacation. An ordinary vacation will not cost much to warrant taking a loan. Opting for a world tour or a cruise could be expensive. However, taking a personal loan could cover most of the expenses that come with a grand vacation.

Have a Healthier Financial Life by Using Debit Cards


Almost everyone has at least one credit card that they use from time to time. While this is not an issue in itself, using credit cards too often or borrowing too much money through them can drive individuals into serious debt. It can also cut their access to future loans by lowering their credit rating as a result of a high credit utilisation ratio.

Generally speaking, having a credit card is always a good idea, provided that you use it sparingly and always pay it off as soon as possible (preferably before the end of the month).

This having been said, as popular as credit cards maybe, more and more individuals have started using debit ones in their stead. These can be used just as easily, but they come with a few extremely important advantages that can help individuals have a healthier financial life.

What’s the Problem with Using Credit Cards?

Credit cards are similar to a line of credit. When approved to get one, the borrower gets access to a borrowing account that has a certain limit. As he pays for products and services using that card, he essentially borrows money from the credit account. Furthermore, he only pays interest for the money that he withdraws, not for the amount that is accessible to him.

This may seem appealing to some, but the interest rates attached to credit cards makes this type of debt prohibitively expensive. If the borrower returns the money by the end of the month, he usually does not have to pay interest, but many are unable to do this. In most cases, borrowers end up rolling their debt from one month to another and continue to spend money.

How Are Debit Cards Different from Credit Cards?

Debit cards do not allow you to borrow money, but to tap into an account that you have opened and deposited money into. There is no interest rate attached to it because there is no debt. Furthermore, individuals who deposit and withdraw certain amounts of money using their debit cards are usually not even required to pay administration fees. In other words, having and using a debit card is free.

However, one of the biggest advantages of debit cards is the fact that they help individuals save money. A large number of lenders allow individuals to open savings accounts and attach debit cards to them. This means that they will receive interest for the money that they deposit into their savings account, and they can access the entire amount using the card.

At a glance, this may not seem useful to individuals who are using credit cards because they have a hard time paying all of their monthly expenses, but in the long run, they can be great tools. Credit cards almost always lead to considerable debt if overused, and having more than one will affect an individual’s credit score.

On the other hand, having and using debit cards will show lenders that you can properly manage your finances to save money, and your credit rating will go up.

They Cannot Lower Your Credit Rating

Having several credit cards, even if you do not use them, will lower your credit score. This is because lenders will consider that you already have a large amount of credit available to you and may not approve future loans. Furthermore, using the credit cards will affect your credit utilisation ratio, which will again lower your credit rating.

Debit cards do not have these issues. Any individual may have as many debit cards as he wishes, and his credit score will not be affected.

Using Local Credit Unions to Borrow Money


As prices for smart gadgets, household electronics, cars, and medical procedures continue to grow, more and more people are finding themselves forced to take out loans. Traditional lenders such as banks have seen this price growth as an opportunity to reduce the requirements for their products. However, even with the increased amount of accessibility of currently available loans, many cannot access them.

The main reason behind this is usually that some individuals’ credit scores are too low for the loan that they want to get. In other cases, potential borrowers are turned down because they have no financial history that the lenders can use to calculate a credit rating. Regardless of the reason, many individuals either cannot take out loans from banks, or they can’t afford them.

This is where credit unions come into play. These organisations have been around for quite a while. However, most of their services are rarely advertised, which means that most are not aware of their existence.

What Are Credit Unions?

Credit unions are community savings or loan cooperatives. The organisations that are built around groups of people that have certain things in common. Some of these are created by individuals who live in the same area, while others are the product of co-workers who want to help each other. For example, the workers from a factory often create credit unions and pool their resources to enable each other to borrow money regardless of their credit score.

From a technical point of view, credit unions are run solely for the benefit of its members. This brings us to the second defining feature of any credit union. These organisations are always non-profit enterprises. In other words, they do not generate profit for the shareholders but use the money produced to reward members.

The Advantages of Using Credit Unions

Banks are the most popular lenders in the world. However, they do not always offer the best terms and conditions. Furthermore, banks are designed to generate profit, which means that they do not always have the best interests of the borrowers in mind. On the other hand, credit unions are more borrower-friendly and are designed to help their members, not the shareholders. This enables them to offer several advantages when compared to other lenders:

  • Lower Interest Rates – All the loans that borrowers get from credit unions will have considerably lower interest rates than those offered by banks;
  • Long-term Saving Incentives – All credit unions actively encourage their members to save regularly and have a healthy financial life. This can be done through regular contributions to collective savings accounts or other means;
  • Financial Support for Members – Credit unions offer free financial advice for all its members, as well as assistance in case of emergencies;

Borrowing and Repaying Money Using Credit Unions

Getting loans from credit unions is as simple as contacting them and asking to borrow money. However, it is important to keep in mind that only members of the organisation can get loans. This means that you either have to already be a member or be eligible to become one. Furthermore, it is worth noting that some unions require that individuals contribute to a certain number of months before they can borrow money.

This is designed to help build trust between the union and its newer members, which enables the organisations to offer lower interest rates and larger credits. For borrowers, it may seem like an unnecessary step, but once it is essential because credit unions do not perform credit score checks.

Repaying the money is done through monthly instalments, the value of which is established when signing the loan agreement. Lastly, credit unions do not typically offer secured loans.

How Can Co-signing a Loan Benefit Both Borrower and the Guarantor?

Those who have low credit scores will know how difficult it can be to get one’s loan applications approved by lenders such as banks. Depending on an individual’s credit history, the lender may either refuse the application or attach harsh terms and conditions to the deal. This is usually done to secure the loan and ensure that the lender will not lose money.

This has led to the creation of co-signed loans, which are designed to allow individuals with low credit scores to borrow money. The co-signer essentially agrees to repay the money in case the borrower is unable to. However, this also includes the risk of damaging the credit scores of co-signers if the money is not returned on time.

While consigning a loan may seem to be extremely risky, especially the borrower is not trustworthy, this type of deal can benefit all parties involved. Before we look at the advantages of a co-signed loan, let us first establish what it is.

What Is a Co-signed Loan?

From a technical point of view, almost any loan offered by banks can be co-signed, whether they are secured or not. The actual act of co-signing a loan allows an individual to act as a guarantor. In other words, when an individual wants to get a co-signed loan, he must find someone willing to put up his credit score and financial reputation on the line. Co-signers must agree to repay the loan if the borrower is unable to.

It is also important to mention that lenders who offer guaranteed payday loans also look at the co-signers’ credit rating when assessing a loan application. This means that individuals who have low credit scores can get great loans if they find a co-signer with a great financial track record.

Who Can Co-sign a Loan?

Co-signing a loan has very few requirements. Generally speaking, everyone who has a credit rating that is good enough to borrow money from the bank will be able to co-sign a loan. Lenders often treat co-signers as primary borrowers, which means that they will assess their credit score and their financial history. If the co-signers’ financial records are clean, then the lender will offer better terms and conditions.

In most cases, borrowers ask family members or trusted friends to co-sign their loans. However, lenders do not distinguish between these individuals. The same deals are offered regardless of the nature of the relationship between the borrower and the co-signer.

What Are the Benefits for the Borrower?

As it may be apparent, the co-signed loan is primarily advantageous for the borrower because the credit score of the co-signer influences the lender’s deal. This enables individuals with low credit scores to borrow money at low-interest rates, provided that they find a co-signer with a great financial record.

Co-signing offers benefits to both the lender and borrower.

How Does the Guarantor/Co-signer Benefit?

The co-signer also benefits from these deals because the loans are marked on their financial records, building up their history. From a technical point of view, a loan that an individual co-signs is considered a regular loan in terms of credit score. This makes co-signing credits great ways to passively increase your credit score, provided that you trust the borrower with the debt.

What Are the Risks of Co-signing a Loan?

As mentioned above, the only disadvantage of co-signing a loan is that the co-signer may be required to repay the money if the borrower cannot. However, it is important to also keep in mind that a co-signed loan is still marked as an active loan on the co-signers’ financial records. In other words, if you co-sign a loan and then want to borrow money for yourself, it will appear to lenders that you already have an outstanding debt that must be repaid.