Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Do guaranteed payday loans really exist?
A legit lender won't guarantee, but can you apply for a payday loan or short-term instalment loan where approval is almost guaranteed?
There are plenty of instances where people are caught short and need extra money, but if you have bad credit, it can make borrowing harder. If you need money quickly, you could turn to a payday lender to get a loan. These loans are typically for relatively small amounts and relatively short-terms. As such, payday loans typically have looser eligibility requirements, with many lenders focusing less on your credit rating, and more on how affordable the loan would be for you.
If you need a fast loan but you’re worried about your credit rating, you might be looking for lenders offering “guaranteed approval”, or “100% approval”. Take caution. Loan companies are required to lend responsibly, which means assessing whether or not the loan you’ve applied for is right for you. No payday lender should claim to guarantee approval – if they do they’re not acting responsibly, and you should be very wary.
So realistically, there’s no such thing as a guaranteed payday loan. But that doesn’t mean you have nowhere to turn.
So what are my options?
Many payday lenders don’t require great credit. They’ll still have other eligibility criteria you need to meet in order to be considered – primarily they’ll be interested in your ability to repay the debt.
Lenders are upfront about the minimum criteria you’ll need to meet in order to apply. Never apply for a loan until you’ve checked these criteria. If you do, not only could you set yourself up for disappointment, you could actually damage your credit record further – that’s because each time you apply for a loan, the lender will run a full credit search which will be logged on your credit file and which often has a slight negative effect on your credit score (usually this is short-lived – being repaired by a few months of responsible financial behaviour).
If you apply for too many loans in a short space of time, as well as damaging your credit score you could put off prospective lenders, who may interpret all the applications for credit as a sign of severe financial issues.
You may wish to consider using a payday loan broker. Brokers will usually have a panel of lenders that they refer applicants to, so if you’re not successful with one, your application is passed to the next, then the next, and so on. You’ll only have complete a single application form, with the broker, rather than having to go through the process several times with several different lenders.
What should I consider before applying to a lender?
These are short-term financial solutions, meaning you have to repay the loan on the scheduled due date, typically your next payday. If you decide to take out a payday loan, keep in mind the interest will be high. You’ll need to budget for your repayments before you borrow, otherwise you may be stuck in a cycle of bad debt.
When comparing payday loans to find the best offer, keep in mind some of the following features:
You can also search the Financial Conduct Authority (FCA) register to check that the lender you have in mind is authorised and regulated.
Compare live rates from a range of payday lenders
We compare payday/short-term loans from
Each lender will specify its own minimum eligibility criteria for borrowers. Being eligible means your application will be considered, but isn’t a guarantee of acceptance. Whichever lender you opt for, you’ll likely need to:
Having assessed your application, in some cases the lender may offer you a smaller or shorter loan than you originally applied for.
Frequently asked questions about guaranteed payday loans
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