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A wise guide to…

Guaranteed loans

Many of the circumstances that lead people to seek credit urgently, such as unemployment, can also make it more difficult for them to be accepted by traditional lenders. This leads many to look for loans with some form of acceptance guarantee. However, truly guaranteed loans do not exist and any lender advertising them should be viewed with suspicion. Despite this, there are borrowing options with high acceptance rates that can fit many personal and financial circumstances.

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Representative 49.7% APR (variable). Representative Example: If you borrow £2,600.00 over 36 months at a Representative rate of 49.7% APR and an annual interest rate of 41.00% (fixed), you would pay 36 monthly instalments of £126.61. The total charge for credit will be £1,957.89 and the total amount payable will be £4,557.89.
Choose Wisely is a trading style of Choose Wisely Limited and is a free to use price comparison website. Choose Wisely Limited is authorised and regulated by the Financial Conduct Authority as a credit broker not a lender, firm reference number 730574 and is registered with the Information Commissioner’s Office number Z3106681.

A quick, easy way to get a guaranteed loan today.

  • Borrow from £300 to £10000.

  • Choose between lenders who have accepted your application.

  • Absolutely no fees, ever.

Representative 49.7% (variable).

How to get a guaranteed loan in 3 simple steps.

Affordability assessment.

1 form - takes 2 minutes to complete and your data is 100% secure.

Compare products.

Choose from lenders that have accepted your application.

Speedy finance.

If approved, the cash can be in your account in as little as 15 minutes.[†]

Table of contents

Written by Inez Miedema
Read time: ~5 mins
Published: 12th March 2020 Updated: 23rd March 2020

What are guaranteed loans?

A guaranteed loan is, in theory, a lender which will accept any application, regardless of any of the normal criteria such as credit history and personal income.

The first thing to say is 100% guaranteed loans are not something you will find in the UK.

Every authorised lender who appears on the financial services register has the choice whether or not to lend to anyone who applies. Moreover, they have an obligation to protect consumers by carrying out robust affordability assessments. Not everyone is going to be able to afford to borrow money, making it impossible for loans to be guaranteed.

As a result, 'guaranteed loans for unemployed people' and 'loans with no credit check' are universally misleading claims. Similarly, adverts for guaranteed payday loans from direct bad credit lenders should be treated with absolute caution as these claims are untrue and likely to harm your search for credit rather than help it.

Lenders always carry out credit and affordability checks, so avoid any company offering guaranteed approval loans - this claim is always too good to be true. They are sometimes simply an attempt to persuade you to click through to a website.

There are plenty of ways in which you can improve your chances of being accepted for a loan, but you cannot guarantee acceptance.

Can you get a guaranteed loan with no credit check?

It is understandable that, if you have bad credit, you might wish to avoid a credit check. Your credit file shows your credit history and any applications for credit. Repeated applications for credit within a short term can raise alarm bells with lenders. However, you can’t get any loan without a credit check.

Be distrustful of lenders offering 100% guaranteed loans without credit checks or stating that they are a guaranteed payday loan direct lender. It is highly likely they are not following the FCA (Financial Conduct Authority) responsible lending rules, which are designed to protect consumers. Such lenders may not even appear on the financial services register, in which case they must be avoided.

It used to be the case that ‘guarantor loans’ did not require you to go through a full credit check yourself. This type of loan involves someone, typically a family member, entering into an agreement with your loan company.

Lenders run credit checks to protect themselves: they do not want to lend to people who cannot afford to repay the loan. In the UK any firm offering loans to consumers must be authorised by the FCA. The FCA requires lenders to follow the responsible lending rules. These include having a thorough process in place to check whether or not someone applying for a loan can afford to repay it, while also meeting all of their current financial obligations. All of the lenders on Choose Wisely are authorised and regulated by the FCA.

The lender must check your identity to be sure that you are who you say you are via a credit bureau - this is also to check your financial circumstances and credit history to check that you can afford to repay the loan you are applying for. Be as accurate as possible when you are filling in the application forms. Never say your income is more than it actually is, and never leave out financial commitments. You are required to tell the truth.

What guaranteed loans exist?

As we have seen, 100% guaranteed loans do not exist as no lender can actually provide blanket acceptance. If a firm advertises itself as a guaranteed payday loan direct lender, be very wary.

Steer clear of any bad credit loans with guaranteed approval and no guarantor from a direct lender. These don’t have any of the usual checks and balances that scrupulous lenders would always insist upon, which is a serious red flag.

You should also apply this level of caution to so-called guaranteed loans for unemployed people and the payday loans market in general.

Make sure you know the full details of the agreement before signing anything.

How to get guaranteed loans

Nothing is guaranteed, but there are ways to maximise your chances of acceptance.

Choose Wisely's Get Accepted application process helps you through this entire process. We show you which lenders will accept your application before you apply, improving your chances of getting the loan paid out quickly and easily.

How do I get accepted?

As mentioned, no one can provide guaranteed loan acceptance.

When you make your application, make sure you provide all of the requested information. Ensure that the figures you provide for your income and financial commitments are complete and accurate. If you’re finding it difficult to be accepted for the full amount you’re looking for, start with a smaller amount, pay it back promptly and then apply for more when you need it.

Always make sure the company you're applying for a loan with is fully authorised and appears on the financial services register. Choose Wisely only lists lenders who are authorised by the FCA, so it is a safe place to look for loans.

While the promise of guaranteed loans for unemployed people can be tempting to those looking to make ends meet after losing their job, these offers should be avoided at all costs since, as mentioned, they are too good to be true.

While it’s easier to secure a loan when you are in full-time employment, you do not need to have a job to take out a loan. You do, however, need to have a steady source of regular income which can take the form of:

  • Self-employed earnings
  • Benefits
  • Rental income (if you are a landlord)
  • Pensions

How quickly can I get the money?

There are some guaranteed same day loans and quick application processes that can get you your money faster. Choose Wisely’s Get Accepted application process takes 2 minutes if accepted your loan could be paid out within an hour.*

All you need to do is:

  • Fill out our secure online application form
  • Choose from the cheapest lenders that have accepted your application
  • Finalise the application with your chosen lender and you could receive the funds into your bank account within 60 minutes of applying

Get the right bad credit loan

Need more information on poor credit loans and how to get accepted?

Guaranteed loans FAQs

Are secured loans guaranteed?

No loan is ever guaranteed and the decision of approval always lies solely in the hands of the lender that you apply with. Securing your loan against a personal asset may strengthen your chances of your application being accepted because it gives the lender some reassurance.

Can you get a guaranteed loan with bad credit?

If your credit score is less than perfect, you’ll find it more difficult to get a loan, because lenders won't see you as a trustworthy borrower. There are loans for people with bad credit, but you’re likely to pay a higher interest rate and you may need to have a guarantor. Bad credit loans are certainly guaranteed.

Are guarantor loans guaranteed?

If your credit score is less than perfect, having a guarantor to support your application might stand you in a better position for getting accepted - this is because a guarantor is somebody that trusts you and can reassure the lender by agreeing to make any loan repayments that you do not. Although it may strengthen your application, having a guarantor does not guarantee that you’ll get a loan.

Written by
Inez Miedema
CMO & Take Control Author at Choose Wisely

Inez came on board in the Summer of 2019. Her main focus has been helping as many people as possible find our website through online marketing, writing content and partnership deals. She boasts 6 years of FinTech experience with other brands and has an in-depth knowledge of our customers.

The quickest way to find the best guaranteed loan for you.

No obligation. 100% secure.

Important Information.

All of the information in this guide is correct at the time of writing.

Rates shown are quotes based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 3.9%APR to a maximum of 1575%APR Representative and loan repayment periods range from 3 to 60 months.

[*][†] Once accepted, your loan can be transferred to you in as little as 15 minutes. The time that it takes for the loan to show in your bank account will depend on your lender and your bank.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to moneyadviceservice.org.uk.

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
Your score can be accessed for free via any of the main credit reference agencies such as Credit Karma, Clearscore or Experian.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk