Every lender in the UK has different criteria when it comes to who they lend to. However, if you have a very strong credit history and a steady employment, you are certainly putting yourself in the best position possible to be accepted. There are ways to improve your chances of getting a guaranteed loan if you meet the following criteria:
Boost your credit score
If you have the maximum credit score, you are in a good position to be accepted for an unsecured loan or personal loan, at a very affordable rate. You can check your score for free using a credit reference agency like Experian or Equifax. You automatically get a credit score when you turn 18 and you can build it up by making all your payments on time for credit cards, loans, phone bills and more. If you fall behind on payments, get defaults or a CCJ, this will negatively impact your credit score.
Smart ways to boost your credit rating include closing down any store cards or credit cards that you do not use – since having them makes it look like you have access to potentially large amounts. Also, it is best to disassociate with any people with bad credit that you have a joint account or mortgage with, since it is assumed that you might have to help them out.
Have a stable employment
If you have been employed for a long time and have a steady income, this will give the lender confidence that you will be able to repay your loan on time. Some lenders we work with at My Financial Broker will request proof of recent payslips – and if you have been employed at the same place for several months or years, it adds a lot of credibility to your application.
Have good security or collateral
If you have a poor credit score, you can improve your chances of getting a guaranteed loan online if you have a valuable asset or collateral that you can use.
For some people, this could be using your car or van as collateral to apply for a logbook loan. Or if you own a property, you can secure you loan against your flat or home to access funds. Provided that the car or property is relatively new and in good shape, it should maintain its value and many secured lenders will be willing to lend on this basis. However, you should be aware that your asset could be repossessed if your loan is not repaid.