guaranteed payday loans

The guaranteed loans are the credits available with high possibility of approval even for the bad credit people irrespective to professional status. These loans are available for the employed and unemployed both. These are sanctioned even to the people working as self professional. The basic criteria for accepting the loan application is borrower’s credibility but credit score is not the only parameter to judge it, as most of private lending agencies consider the poor credit score as the circumstantial development. To stand with the ever increasing diversity in the requirements, the private lending agencies offer variety of tailor made guaranteed loans for the unemployed and employed both.

Payday Loan – The Most Sought After Guaranteed Loan:

 The credit score between 600 and 700 is considered satisfactory in the UK but majority of professionals employed or unemployed has the credit score below this range. The average credit score of professionals is around 380. Is the majority of professionals not good to repay the pending bills? Certainly the answer is – no. Here is the basic and genuine reason for having such a low credit score.  15% of credit score is contributed by credit history; it puts young professionals at natural disadvantage. The 10% of score is contributed by the mix of debts. The median age of home buyers is around 32 years; it means more people of this age or around have a loan that affects their credit score. The figure 1 shows the areas having the high average score; the top areas including Kingston upon Thames are in south of England. The geographical conditions and economy of the particular area also affects the credit score; therefore, only the borrower can’t be blamed for having

Figure 1- Areas Having High Credit Score in UK

The low credit score. The lending agencies understand this phenomenon; therefore, these don’t give much importance to credit score while granting the payday loan.

Guaranteed Payday Loan- Understand It Before You Apply: 

The success rate of payday loan applications is above 90%; therefore, this credit form is known as guaranteed payday loan. To get this loan, the applicant doesn’t need to have a guarantor or to pledge some asset. The requested amount is credited to salary account with condition of repayment period up to the forthcoming pay day. The total amount is deducted automatically from the salary account. The maximum repayment period of payday loan is about 25-28 days. The salary checks are considered as the guarantee against loan. The genuinely priced payday loan is the best option to get the required financial help same day; the lending agency too feels safe because of surety of repayment at salary day. The monthly installment is high that often becomes tough to manage. The payday loan interest rate is high despite the FCA regulations; some lenders offer payday loan even at 400% APR. If a lending agency senses the possibility of non repayment, it may try to cash the deposited check before the mentioned date posing the harms of overdraft. In case of failure, the direct lender can roll the existing loan in to a fresh loan with new conditions.

 How Much Payday Loan Can You Apply For?

The average amount of a guaranteed payday loan for 22 days repayment period is £260. The default charge can’t exceed £15. The 10% of people take this loan for one week or less. The 53% borrower use the borrowed money to meet out living expenses including groceries, utility bills etc. The 7% payday loan borrowers use the amount for buying clothes and household items. The affordable loan amount is 10% of income because you need the rest of amount for meeting out the monthly living expenses. The payday loan may be a wrong choice if:

  1. You use the amount to pay any other loan
  2. You already have a payday loan
  3. You are not 100% sure about the expected income to pay back it on the time
  4. You use the amount for buying the things that you can avid.


Before taking any payday loan, consider twice that from where you’ll get the money next month to pay the installment plus regular monthly expenses.