Is there such a thing as a guaranteed loan? A loan that you can get regardless of your credit history, your household income, your employment status, your monthly outgoings and more? The answer is yes – but is there a catch?
Yes –a guaranteed loan online is too good to be true. In this article, we’ll explain why guaranteed loans online or in the real world could be the very worst mistake you ever make financially. We’ll cover…
• Why there is no such thing as a legitimate guaranteed loan online
• How does a lender make a decision on whether to give a loan or not?
• What you should do to increase your chances of getting a loan
• How long does it take to get a loan online?
• What do I need to have when I’m applying for a loan?
• Are bad credit borrowers really welcome?
• What’s the truth about no credit check loans?
• How using a broker like Oyster Loan can save you time and lots of money.
Is there such a thing as a guaranteed loan online?
Here at Oyster Loan, we believe in openness, fairness, and transparency. If there was really a guaranteed loan online that was 100% legal and where the company making the loan could be trusted to look after you, we’d tell you. We’re here to save you money when you take out a short-term loan or a payday loan to cover a financial emergency.
Because of the rules laid down by the regulator, there are no such thing here is Britain as a guaranteed loan online which is approved and regulated by the Financial Conduct Authority. Guaranteed loans are not allowed because every legitimate and licenced lender must make affordability checks on everyone who applies to them for a loan.
But what about the companies which are promising a guaranteed loan online?
There are dozens of websites out there promising guaranteed loans online – maybe even hundreds. In every single case – without exception – these companies will fall into one of the four following categories:
1. They’ve stolen the details of a legitimate loan company
Lots of unscrupulous thieves will “steal” the identity and the licence numbers of legitimate companies in order to fool borrowers that they’re applying to the real company directly. Their websites look very convincing and borrowers get additional reassurance when they see telephone numbers and email addresses listed on their sites.
Check to see if the website domain they’re using in on the Financial Services Register. If it is, you’re dealing with a legitimate company. If it’s not, they’re trying to scam you – they may want to charge you to apply for a loan or they may be interested in the details you give during the application process so that they can then make bogus applications on your behalf but make sure the loan is paid into their bank account instead of yours.
If it doesn’t feel right, avoid it.
2. They’re offshore loan companies
If you apply to a loan company based outside the UK, you won’t be protected by the strict Financial Conduct Authority regulations (more on them later). Without that protection, there is nothing to stop an overseas loan company upping your interest rates or charging you astronomical default fees if you miss a payment.
3. They’re unregulated loan brokers
Always beware any broker sites which promise you that you’ll be guaranteed a loan – it’s a promise they can’t make. Just like lenders, brokers also need a licence from the Financial Conduct Authority to trade legitimately.
An unregulated loan broker is only interested in charging you a fee to find a loan. And because no regulated lender will deal with them, the chances are that they’ll deal with the offshore loan companies which are not regulated and which can charge you fees and interest rates than a British licenced lender could not.
4. They’re loan sharks
Any company offering to lend money which is not on the Financial Services Register is a “loan shark” – an unregulated lender. Whatever you do, please make sure you don’t deal with a loan shark – you will get the money you want but you will pay extortionate rates of interest and fees on your loan and loan sharks are famous for harassing their borrowers with menace and violence if they miss a payment.
Is this company on the Financial Conduct Authority’s register?
Always check to see if your broker or lender is regulated and licenced by the Financial Conduct Authority. Why is that so important?
From 2015, people taking out short term loans or payday loans enjoy far more protection than other types of borrowers. There are four main rules in place which give you peace of mind as a borrower:
• if you fall into difficulty paying back a loan, your lender must provide you with the space and time to work out how to pay them back. That includes pointing you in the direction of an impartial debt advisor and being able to make small token payments back which don’t affect your ability to meet your rent, mortgage, utility bills, and so on
• you’ll never pay back more in fees and in interest than you borrowed. So, if you borrow £300, the most you’ll ever pay back in total (loan amount, interest charges, and fees) is £600
• if you miss a payment, you won’t be charged more than £15. If a lender tries unsuccessfully to take payment from you twice, they can’t make any more attempts without your permission
• the maximum amount of interest a lender can charge you is 80p per day for every £100 borrowed (that’s a daily interest rate of 0.8%)
Increasing your chances of qualifying for a guaranteed payday loan online
The Oyster Loan team have put together the five things you need to know to increase your chance of qualifying for a short-term loan or payday loan, even if you have bad credit. They are:
1. Do you meet the requirements?
Although each lender has their own requirements before they’ll agree to lend you money, they all share certain criteria in common with each other:
• You need to be 18 years or old
• You need a UK bank account with a debit card
• You need to be employed and to have your wages paid in the bank account your lender collects payments from
• You need to be a UK resident or citizen
• You need to be on the electoral register
2. Carefully fill out the application form
Lenders only have the information you provide them with (in addition to your credit record) so it’s absolutely important you get every detail right.
Be extra careful with your name, your date of birth, your mobile number, who you work for, how much you earn, how much you spend every month. If any information you provide is inaccurate, that only increases the chance that you’ll get a “no” to your application.
Likewise, if you miss out any important details on your application form, the lender will send it back to you asking for the missing details. They may even want to speak with you on the phone because they get suspicious when someone doesn’t provide them with all the answers they’re looking for.
3. Make the most out of your credit score
No UK lender licenced by the Financial Conduct Authority will give you a no credit check loan. By law, all lenders must satisfy themselves that you can afford the loan you’re applying for. In fact, they are legally obliged to run these types of check on you.
Most payday loan and short term loan lenders are happy with a degree of bad credit history – some are happy with very poor credit ratings and others want cleaner credit ratings. The problem is that there’s no way of telling which lender is happy with what because they don’t supply that information to borrowers – they do however supply it to brokers like Oyster Loan.
Oyster Loan are able to match you with the lenders most likely to want to work with you because we know the requirements they want and the amount of bad credit they’re happy with. More on how we do it later…
When you make your application for a quick loan like a payday loan or short term loan, a lender will ask you how much you earn, how much you spend every month, and on what.
This is because the Financial Conduct Authority requires a lender to check to see that, once all your bills have been paid, that the loan is affordable for you and that making the repayments won’t cause you any unnecessary hardship.
In an ideal world, a lender will want to see that the loan repayments you make take up less than 30% of what’s left over at the end of every month. However, some lenders are happy with a bitmore and some want a bit less – Oyster Loan will make sure that your application is only forwarded to companies happy to work with.
5. Don’t borrow any more than you need
Always only ask for the amount of money you need to cover your financial emergency – never ask for more. Payday loans and short term loans are more expensive forms of credit so they should only ever be used for situations where there is no other option.
Most lenders prefer smaller amount because the risk to them of not getting their money back is smaller. If you only need £300, please just ask for £300. If you ask for £400, lenders get more wary (no matter who is applying) and you might cut yourself off from the support that you need.
Does it take long to apply for a guaranteed short term loan online?
Filling out the form normally takes between a minute or two if you have all the details to hand – more about those just below. The longer it takes for you to fill in the application form, the longer your lender has to wait before they get the details they need to give you a quick answer.
What do I need to qualify?
On your application form, you’ll need to fill in the following:
• Name (title, first name, last name)
• Date of birth
• Email address
• Mobile phone (home phone too if applicable)
• How you’d like the loan company to get in touch with you
• What you want the loan for
• Your marital status
• The number of dependents you’re responsible for
• Address and postcode
• Mortgage/own outright/rent/living with parents
• How you earn money
• How much you earn a month
• The name of the company you work for
• The industry your company is in
• How long you’ve been with your company
• How often you’re paid, your next pay day, and the pay day after that
• Work telephone number
• How much you pay in mortgage or rent
• How much you pay for utilities and other bills
• How much you pay for transport
• How much you pay for food
• How much you pay on credit repayments
• How much you spend on other items
• Your type of debit card
• Bank account number
• Bank account sort code
Make sure you have them to hand before you make your application.
How much can I borrow?
With payday loans, the amount you can borrow is generally between £50 and £1,000. Short term loans for usually for between £100 and £2,500.
First-time borrowers are nearly always offered lower amounts than return borrowers because return borrowers have a history of repayment with a lender.
Are bad credit customers welcome?
Yes. What’s on your credit report is important but for the majority of lenders offering quick loans, it’s only one part of the overall picture they look at. The bigger part of what influences them is whether they think you can make the repayments in full and on time when they’re due.
Will I have to wait to receive the loan?
When your loan has been approved, your lender or broker will ask you to read through the terms and conditions of the loan to make sure you’re happy. If you are, once you’ve accepted the terms and conditions and signed the online paperwork, your loan could be in your account within as little as 10 minutes. However, depending on your bank, it may take up to 3 working days.
How am I paid the loan and how do I pay it back?
Your loan is paid directly into the bank account you specify in your loan application – so it’s really important to be absolutely sure it’s the right details. You make your repayments from that bank account via your debit card on the dates and for the amounts set out in your loan agreement.
Is there such a thing as a no credit check loan?
In the same way that there is no such things as a guaranteed loan online, there’s no such thing as a no credit check loan that you can get from either a Financial Conduct Authority-licensed lender or through a broker.
Please do not make any applications for “no credit check loans” without checking everything out about the company beforehand because there could be severe consequences for you and your family if you do.
Does applying through a broker improve my chances?
Earlier, we let you know that each lender has their own criteria for deciding on whether they want to loan someone money or not. The problem is that, although lenders tell brokers what these requirement are, they never tell borrowers on their websites or over the phone.
That’s why the majority of applications that borrowers make direct to lenders get turned down. How do you know as a borrower which company to make an application to if you don’t know what their criteria are? It’s difficult and that’s where brokers come in.
What does a loan broker do that’s different?
Every Financial Conduct Authority-licenced broker, like Oyster Loan, has a panel of Financial Conduct Authority-licenced brokers they work with. Because they all have a licence, that means that you benefit from the protections we mentioned earlier on in the article.
When you apply through a broker, they look at both what’s on your application form and on your credit report. They then only send your details to the lenders whose criteria you’ve got the very best chance of meeting.
A broker may send your details to 3 lenders or they may send them to 10. Because the broker does all the hard work, you don’t have to sit at your computer or use your phone to fill in application forms for hour after hour. Even more important, multiple credit checks which will be recorded on your file if you make multiple applications with different lenders at about the same time actually make it less likely you’ll get a loan, even if you’d be perfect for a lender under normal circumstances.
Getting the decision
Oyster Loan’s computers speak to each lender’s computers as soon as they have all your details and they then start the matching process – they’re programmed to find the right lender for the right borrower. The process takes seconds and you’ll very quickly get back the best offer we find (together with the repayment amounts, amount of interest charged, and all other important information) within a minute.
Find the cheapest online payday loan or short term loan through expert friendly brokers, Oyster Loan
Oyster Loan’s service is free of charge. You don’t pay any more for your loan by going through us than you would if you went direct to the lenders we find who want to work with you. Better still, you’re not obliged to accept any offer we find you. That means that you’re in control throughout.
To start your application, please click here.