What is a guaranteed loan?
It’s important to be aware that there is no such thing as a guaranteed loan.
In theory, a guaranteed loan would be a loan that you are certain to be accepted for, regardless of your personal circumstances, affordability, or credit score. Not only would this be hugely irresponsible and put the borrower at serious risk of financial hardship, but it would also breach guidelines set by the Financial Conduct Authority (FCA).
The FCA requires all authorised and regulated lenders to complete a full creditworthiness assessment on anybody who applies for a loan. The result of this assessment will determine whether your application will be approved, and these checks apply to all applicants, regardless of their credit score and income.
You should be extremely wary of any company or individual claiming to offer guaranteed loans, as they are highly unlikely to be operating in-line with FCA procedures.
Does CashLady offer guaranteed loans?
No. As discussed, guaranteed loans do not exist.
CashLady, and all the lenders we work with, are authorised and regulated by the FCA.
We and our lenders carry out a series of checks throughout the initial search and application process to ensure that you’re matched with the most suitable product for your own personal situation.
What sort of checks are carried out when you apply for a loan?
- Eligibility criteria. Before you search for a loan, you’ll need to make sure that you meet the broker or lender’s eligibility criteria. In order to search for a loan with CashLady, you must be over the age of 18; a UK resident; and have a UK debit card and bank account with a regular source of income paid into it.
- Eligibility check/soft search. Some credit brokers and lenders offer an eligibility check service, which enables you to check your chances of being approved for a loan before you make a full application. An eligibility check is done using a soft search. Soft searches are only visible on your credit file to you and the company that carried out the check. CashLady uses soft search technology to gain an insight into your financial history without affecting your credit score. This enables us to scan our panel of lenders for a suitable loan for you.
- Creditworthiness assessment. If you’re matched with a loan and make a full application, the lender will complete a creditworthiness assessment. This will include a hard search or Open Banking. Please note that a hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time will harm your credit score.
What’s pre-approval, and does this mean that I’ll be automatically accepted?
Pre-approval is when an eligibility check or soft search has revealed that you could be a suitable candidate for a certain loan.
Pre-approval does not guarantee acceptance, and if you choose to proceed with the loan, you’ll need to undergo a creditworthiness assessment directly with the lender.
Can I get a loan without a credit check?
It’s not possible to get a loan without a creditworthiness assessment. While you might feel anxious about these checks, especially if you have a history of bad credit, please know that they are in place to protect you.
Lenders need to be sure that you can afford to repay the money you’re applying to borrow. Being accepted for a loan that you can’t afford could cause serious money troubles, including financial stress and a spiral of debt. Defaulting on your loan repayments will damage your credit score, and you could be charged additional fees.
Could I get a loan with bad credit?
Finding a lender willing to consider your application for a loan when you have a bad credit score can be difficult. If lenders see a history of poorly-managed credit commitments, they may feel apprehensive about allowing you to borrow money. We understand how frustrating this can be, particularly if you have more recent history of handling your finances effectively.
CashLady is proud to work with a number of responsible lenders who specialise in loans for people with bad credit history.
Many of the bad credit loan lenders we work with use Open Banking as part of their creditworthiness assessment. Open Banking is a safe and secure procedure that, with your consent, enables lenders to access your online bank account. With a read-only view, they will be able to see your recent financial activity, including your spending and repayment habits, which could help to provide them with a more up-to-date picture of how you handle money.
Please note that a bad credit loan could come with a higher rate of interest. Before you consider a bad credit loan, you should calculate how a high interest rate will affect your household budget. Will you be able to comfortably afford the repayments?
Will a loan be guaranteed if I apply with a guarantor?
No. It’s crucial to be aware that no loan, guarantor or otherwise, can be guaranteed.
A guarantor is somebody who agrees to make your repayments if you’re unable to. Applying with a guarantor may be something to think about if you have a history of poor credit and worry that you may struggle to get accepted for a loan with a mainstream lender.
The process of applying for a guarantor loan is the same as applying for any other type of loan, and you’ll still be required to undergo a creditworthiness assessment. The key difference is that the lender will carry out two sets of checks: one on you, as the borrower, and the other on your nominated guarantor.
How can I improve my chances of being approved for a loan?
Working towards a healthier credit position could help to increase your chances of having a loan application accepted.
- Register to vote.
- Check your credit report for errors.
- Ensure all your bills and any current credit commitments are paid on time each month.
- Keep your credit applications to a minimum. If you need to search for credit, consider using a credit broker, which could help to reduce the number of hard searches carried out on your credit file.
- If you have a credit card, be sure to stay well within your credit limit and make at least the minimum repayment amount due on your balance each month.
- Avoid using your credit card to withdraw money from a cash machine.
Search for a loan with CashLady 24 hours a day, 7 days a week
With CashLady, you can search for a loan between £100 and £10,000. Depending on the amount of money you apply to borrow, you could repay your loan across a term from 3 to 60 months.
- Any credit score welcome to apply.
- Our service is completely free to use.
- No-obligation quotes.
- Our form can be completed online in under five minutes at a time and place that suits you.
The CashLady process: how does it work?
- Fill out our online form. We’ll ask you how much money you need, and how long you’d like to borrow it for, as well as some basic information about yourself.
- In 60 seconds, we’ll complete a soft search and scan our panel of lenders for a suitable loan.
- If we’ve been able to find you a loan, you’ll be redirected to the lender’s website, where you can decide whether you’d like to make a full application. You should take the time to carefully read through the terms and conditions and make sure that you can afford the monthly repayments.
- Should you wish to go ahead, the lender will carry out a creditworthiness assessment, which will include a hard search or Open Banking.
- If the lender is satisfied with the outcome of their checks, they will send you a loan agreement and let you know when your money will be sent.
Could I get a loan through CashLady today?
Some of the lenders on the CashLady panel could send your money on the same day your application is approved.
The time it takes for the money to become available in your account will depend on your bank’s policies and procedures.
Worried about money and debt?
Very few of us feel comfortable when talking openly about money, especially when things are worrying us. If you’re struggling with your financial situation or are experiencing difficulties with debt, please know that there are several charities and organisations that you can turn to for free, confidential advice and support. These include: StepChange, MoneyHelper, Citizens Advice, and National Debtline.
If you’ve taken out a loan and are concerned about the cost of your monthly repayments, you should contact your lender as soon as you can.
CashLady Representative 79.5% APR