Guaranteed Payday Loans – Are They Real?

There is no such thing as guaranteed payday loans, however, there are lenders which offer high acceptance rates. Many borrowers who struggle to obtain credit choose to borrow from payday lenders to cover emergency expenses, encouraged by fast processing and claims of high acceptance rates. However, there is no such thing as guaranteed loans, as minimum eligibility requirements must always be met for a loan application to be considered.

How do payday loans work?

Payday loans are similar to standard short-term loans; however, they are not repaid in monthly instalments. Instead, the loan and interest payment need to be made in full on the borrowers next payday. Unlike borrowing from a bank, the cash borrowed can be used for any purpose. Payday loans are popular with those who struggle to find loans with their bank due to poor credit history. Those who need to cover an emergency expense and need access to cash quickly often apply for payday loans, which are designed to tide the borrower over until their next payday. The speed of these loans can assist those with short-term cash flow problems; however, it is important to only borrow payday loans responsibly. Although many borrowers use payday loans effectively as a cash advance, for some borrower’s these loans can cause financial difficulties. Many borrowers only borrow a small amount, however, the requirement to repay the loan in a single instalment can lead to financial hardship in the following month.

Are there any guaranteed payday loans?

No, any lender which guarantees to approve 100% of all payday loan applications should not be trusted. Legally, every lender will need to complete various eligibility checks before approving loan applications. If a lender is promising guaranteed payday loans with 100% or close to 100% loan acceptance rates, this is an indicator that the company is unlikely to be reputable. With so many potential lenders, it is important that you take the time to ensure you apply to a legitimate lender, which is authorised and regulated by the Financial Conduct Authority. Approval rates vary between lenders, so if you have been turned down for a loan from a traditional bank or building society, it may be possible to borrow from an alternative lender with a higher approval rate. Although some lenders will advertise high acceptance rates, you should always bear in mind that there are no guarantees and all applications will be subject to a credit check and affordability assessment.

Are there any payday loans that don’t do credit checks?

No, all lenders which are authorised and regulated by the Financial Conduct Authority are legally required to complete a credit check. If you have found a lender which is advertising payday loans with no credit check, they are likely to be operating illegally as no such thing exists. If you apply to multiple direct lenders in the hope of being approved for a loan there will be several hard searches recorded on your credit file, which can have a negative impact on your credit score. Instead of rushing and making multiple applications in a short space of time, you should compare lenders acceptance rates and consider their eligibility criteria before making your application. It is possible to use the services of a broker, instead of applying to lenders directly. This can save time and the broker will be able to match you to potential lenders based on the information you provide. The selected lenders will then assess your application and complete a soft search of your credit file and you will be directed to the chosen lender to complete a single direct application.

Can I get a payday loan with very bad credit?

It may be possible to apply for so-called payday loans for bad credit; however responsible lenders will only consider loans if the repayments are affordable. Most payday lenders understand that applicants may not have a perfect credit history, so many will still be willing to consider your application. Although lenders will complete a credit check and the results will be important, they will also consider other factors when processing your loan application. To improve your chances of approval, you should only apply for a loan which you can afford. Always take into account your expenses each month when calculating how much you can afford to repay.

A lender is more likely to consider loan applications for smaller amounts, as repayments are more affordable and the risk of you not repaying is lower. For example, if you are looking for a payday loan which accounts for 50% of your usual pay amount, this is less likely to be considered for approval than a loan which is only 10% of your usual pay. To avoid further financial difficulties, it is important to only borrow what you need, as stretching your budget too much could lead to missed payments and increased debt. In addition, payday lenders must make sure you meet basic eligibility criteria, such as being a UK resident, over the age of 18 with a regular source of income. This information combined with a credit check will be used to decide whether you are likely to repay the loan and how comfortable the repayments will be. If you have struggled to obtain credit in the past due to bad credit history, improving your credit score before making an application will improve your chances of being accepted.

There are simple steps you can take which will improve your chances of approval, such as registering on the electoral roll and checking your credit report for any errors or omissions. However, keeping up with repayments is the best way to improve your credit score, as it shows you are committed to repaying debts and are able to budget effectively. It is also important to ensure your loan application is accurate and free of errors, as a simple spelling mistake could lead to your application being rejected. Look for a lender which offers a simple online application process and double-check the details you enter. Always submit the correct address details and income information, as your application will be returned if an error is found and this will reduce the speed of processing.

An alternative to payday loans

Although the idea of guaranteed loans is a myth, here at CashFlex we may be able to help you find a loan from a lender with high acceptance rates. If your poor credit history has made it difficult to find a loan through a traditional bank or building society, it may still be possible to find a loan. Although it is not possible to apply for a payday loan through our website, we can help you arrange a loan for as little as £100, with repayment periods starting from 3 months.

By offering flexible repayment periods, there is no requirement to repay the full loan on your next payday. As a broker, we have partnered with a panel of traditional and alternative lenders, which will consider applications from those with poor credit histories. Our lenders understand that your credit history may not be an accurate reflection of your current situation and many lenders will be sympathetic to borrowers with a poor credit history. Through our alternative to payday loans, we can help borrowers find loans of £100 up to a maximum of £5,000, with terms designed to be flexible to the borrower’s budget. Simply complete our online application form and you will be matched to the ideal lender. There will be a hard credit check when the lender processes your application, which will leave a mark on your credit file.

The lender will consider many factors when processing your loan and poor credit history will not necessarily mean your application will be rejected. If you can demonstrate a commitment to keeping up with your current outgoings and are able to show the loan comfortably fits within your budget, your loan application could be considered. Although there are no guarantees your loan will be accepted, we will match you to a lender which specialises in providing loans to suit your individual circumstances. If approved, you will be able to sign your loan agreement online and the funds could be sent to your bank account within minutes*, making our loans as fast as payday loans. However, the final availability of the cash in your bank account will depend on the processing speeds of your bank.

Here at CashFlex each of the lenders we partner with is authorised and regulated by the Financial Conduct Authority, which means you benefit from fair, transparent and honest loans. Our lenders are committed to responsible lending and although the process is designed to be as quick as possible, you should think carefully before taking out any type of loan. There are several organisations which can offer free and impartial financial advice, including The Money Advice Service, Step Change, PayPlan, National Debtline, the Debt Advice Foundation and Citizens Advice.