An urgent financial situation can arrive in many forms, such as a medical emergency, submitting admission fees to the university, paying utility bills, urgent car repair or essential home improvement. During such financial emergencies, you cannot sit at your home and wait for an option to come to your doorstep. You are responsible for finding a way to come out easily from a financial menace.
You need an adequate amount to overcome these financial problems for these requirements. In the marketplace, several loan companies offer varied loan options to help people with their financial difficulties.
Guaranteed loans can be the best option to borrow funds and ensure that your financial problems are solved perfectly without any hindrance. These loans provide well-timed and well-needed financial help to the people.
How to Qualify for Guaranteed Loans
It is good that you have been making efforts to get a loan. However, the first task is to qualify yourself to aspire for a guaranteed loan approval. Yes, these loans have standard eligibility conditions. You should be above 18 years old, you should be a UK resident, or you should have a bank account.
Guaranteed loans have some different eligibility criteria as compared to other loan options. Let us dig deep into this discussion.
Guarantor: The first condition to qualify for guaranteed loans is having a guarantor with a good credit history or a homeowner. It allows you to fetch a larger amount for a longer duration. It is because if you miss the repayment, your guarantor will be liable to make that payment.
Collateral: Suppose you cannot find a person with a good credit score to become your guarantor. In such a scenario, you can convince the lender by placing an asset as the loan security. Lenders will not have any risk in funding your needs because they can repossess your assets if you lose control of loan repayments.
Monthly Income: There is another criterion where you can win the lender’s trust for guaranteed loan approval. We are talking about your monthly earnings and its affordability to repay. Nevertheless, it is the most preferred way to get small loans like payday loans.
If you can fulfil any of these criteria, you can easily qualify to get a loan on 100% acceptance.
Benefits of Guaranteed Loans
These loans need a guarantor to co-sign the loan paper and to co-own the responsibility of repaying the borrowed sum within the given schedule by the lender. The advantages of getting these loans include:
1. Online Application Procedure and Fast Approval
Before applying for a loan, borrowers often remain concerned about how they can apply for a loan. They always want a suitable application procedure, which should not carry lengthy steps to submit the loan application. Applying for a loan has become a lot easier due to the online facility.
Consequently, most lenders now have an online registration process, which allows the submission of loan applications and cash disbursals on the same day. The online procedure is always secure and simple because no documentation is involved.
Furthermore, the online application system has also made it easier for lenders where they can complete the lending process instantaneously.
2. Guaranteed Approval on the Loan Application
Individuals in the UK have the opportunity to get high-acceptance payday loans from direct lenders. Unlike banks, credit lenders do not reject the loan applications of the borrowers even if they do not put collateral to secure the amount, and not carrying a bad credit score.
In the banks, the borrowers are entitled to put collateral for securing the loan amount. However, these loans are quite different because borrowers can avail of loan benefits despite not providing collateral. At the same time, the interest rates are generally higher and borrowers can only request a short amount to borrow.
3. Borrow Cash Even With a Bad Credit History
The biggest obstacle in borrowing money is the adverse credit record. People have bad credit scores due to negligence or unexpected circumstances like losing their job or medical urgency. Applying for a bank loan can be an option, but bad credit borrowers must overcome many obstacles to get the desired funds.
Guaranteed loans also provide bad credit opportunities but with minimum or fewer obligations compared to a bank loan. In fact, these loans have another advantage for people with poor credit where they can find a way to enhance their credit scores.
For raising the credit score, borrowers should have a lender who can provide repayment schedules as per the financial capacity of the people. A suitable repayment plan enables bad credit borrowers to repay the borrowed amount within the agreed time, increasing their financial credibility.
4. A Great Opportunity for Students to Avoid Financial Problems
As a student, you should have enough savings to utilise during financial scarcity. Suppose you do not have money for basic requirements such as purchasing necessary books, paying rent, submitting admission fees, or other expenses. In that case, you should apply quickly to seek guaranteed loan approval.
These loans are unlike personal loans because the government funds support them. The biggest advantage of these loans is that they have interest rates and repayment terms per a particular borrower’s financial capability.
The students must do prior online research before seeking assistance with these credit options. They should check the rates of interest of the different loan companies, and pick the most appropriate lender.
5. No Need to Collect Papers
Does applying for guaranteed loans require a long application procedure to follow? The answer is no because most lenders are now providing loans through an online procedure where no paperwork and faxing are required.
The online method ensures that the cash is just a click away from the borrowers because as soon as they submit their online application form, the lender can provide benefits of these loans accordingly.
6. Providing Collateral is Borrowers’ Choice
Security is one of the main conditions banks put on the borrowers before granting them funds. In case of no collateral, applications might be rejected by these individuals. However, such a thing does not happen in guaranteed loans in the UK.
The borrowers can easily submit their requests for these loans despite not having collateral or assets to secure the taken amount. At the same time, the amount in these loans is disbursed in small sums, but it will be very useful if someone is going through a tough financial phase and does not want to risk losing collateral.
7. Affordable Interest Rates are Available
Suppose you search thoroughly in the marketplace or through an online way. In that case, you will learn that many professional loan companies are not reluctant to provide guaranteed loans at competitive interest rates.
Borrowers with an acute shortage of funds always want payable interest rates on a loan so they can make payments without any financial burden. Therefore, these loans on guaranteed approval are ideal for borrowers to borrow funds without high-interest rates. But, they just have to find a suitable lender and easily fulfil their objective.
Jessica Rodz is the Senior Content Writer at Cashfacts. She has a long career in the field of content writing and editing. Jessica has the expertise in the UK lending marketplace where she has worked with 7 different lending organisations and acquired many responsibilities from preparing loan deals and writing blogs for their websites.
At Cashfacts, Jessica is managing a team of experienced loan experts and doing a major contribution in guiding the loan seekers via well-researched blogs. She has done graduation in Business (Finance) and now currently doing research papers on the UK financial sector.
