Are There Loans That Are Easy to Get Approved for?


Ignatius Uirab

Money Savings Advice Loans that are easy to get approved for

Loans that are easy to get approved for include bad credit loans, guarantor loans and secured loans. These have some of the highest approval rates for applicants with low credit scores.

There are no loans that anyone can get approved for. The best option for anyone with poor credit is a guarantor loan, as the approval rating is higher, and the guarantor ensures the lender will get their money back.

Approval rates are an important thing to think about when you’re applying for a loan. Applying for loans beyond your reach is a waste of your time and energy. More than that, rejected applications leave damaging marks on your credit file.

When you’re filling in a loan application, you need to feel sure that there’s at least some chance of positive results.

If your credit score isn’t the best, or you’re in an unusual financial situation, read on for more details about loans that are easy to get approved for.

Continue reading to get all the details of loans that have high approval ratings.

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Loans With High Approval Rates

Some lenders are very careful about who they’ll take on. These lenders want trusted debtors – people with good credit scores and a history of paying off their debts. If you have bad credit, it’s extremely unlikely that you’d be approved by one of these lenders.

Other lenders are happy to take on more of a risk. They have higher approval rates, even accepting bad credit, but usually put other safeguards in place to make sure that they don’t lose their money. If you’re looking for loans with high approval rates, you might have be willing to give a little more to these lenders.

Bad Credit Loans

Bad credit loans, including payday loans, are relatively expensive. You’ll pay higher interest rates, exchanged for higher chances of approval.

These lenders know that a higher-than-average proportion of their customers are going to struggle with their debts. Some will turn to debt management plans, typically not paying interest, whilst others will default on several payments and may eventually go bankrupt. There are more ways for these lenders to lose money, so they’re taking on a higher risk when they approve an application.

Providers of bad credit loans will balance the risk, usually by charging higher interest rates. This means that, compared to someone with good credit, you’ll pay more back than you initially borrowed. Lenders increase their chance of getting their money back, but you’ll find that loans are very expensive to accommodate these higher approval rates.

Payday loans are some of the easiest loans to get approved for, and historically they’ve had a bad reputation for approving loans that people can’t afford. If you’re looking for loans that are easy to get approved for, this is a good place to start.

Guarantor Loans

Your chance of approval is higher with a guarantor loan because you have someone else’s backing. Your guarantor, usually a friend or a member of your family, will agree to clear your debt if you can’t.

Finding a guarantor isn’t easy. Though these are loans that are easy to get approved for, the process of finding a guarantor is an altogether very different matter. You’ll need to find someone that trusts you not to leave them with a debt they didn’t ask for in the first place.

Guarantors need to have a good credit score, and often need to own their own home. Many people don’t have someone in their life that could be a loan guarantor. Even if you find someone, asking them to back your loan can be a tough conversation.

Lenders offer high approval rates because they’ve got a second chance to get their money back. If you can’t keep up with repayments, your guarantor will need to take over.

Secured Loans

Secured loans are other loans that are easy to get approved for. This is because you’ll use an asset, or possession, as collateral.

A secured loan works by using an item as backing. Usually, these come in the form of logbook loans, where the lender takes your car’s V5 document. If you can’t keep up with repayments, the lender can take the agreed possession of their own. Whilst this is usually a car or a motorbike, some lenders accept other assets like jewellery or valuable antiques. Some will even accept games consoles and other high-value electronics.

If you keep up with your loan repayments, you’ll get to keep the collateral. If not, your creditor will take the item and sell it to get to their money back. In some cases, the item doesn’t sell for as much as the valuation said it would. When that happens, you’ll still have some outstanding debt.

Secured loans are relatively easy to get approved for, because the lender has another way to get their money back if you can’t pay.

Increasing Your Chance of Loan Approval

If you have a bad credit score, do everything you can to make it better before you start applying for loans. If you don’t need the money straight away, even a few months can make a difference. Keep up with your bills and existing debt repayments, check you’re on the electoral roll and look for any glaring errors that might be affecting your approval rate.

It may help to use a loan comparison website that runs a soft search on your credit record. Soft searches don’t leave lasting marks on your credit file but can be used to determine your likelihood of being approved. Then, you can select the loans that you might be approved for.

Once a hard search is carried out, the mark left on your credit file can damage your future approval rates. Lenders will typically do a hard search when they’re processing your application. If you’ve applied for a couple of loans already, stop searching and take a break.

Further applications are more likely to be rejected, and every rejection will damage your chances even further. Fortunately, your credit file will start to recover if it’s left alone for two or three months.

Risks of Loans That Are Easy to Get Approved For

Loans can be more tempting when approval rates are high. Before you borrow money, make sure that you genuinely need it. Don’t be tempted to borrow more than you need or take on unnecessary debt. Though the application process is easy, you should still take time to consider alternative options.

Always do your bit to make absolutely sure that you can repay what you owe. Look at your budget and check that you’ll keep up with repayments.

Research conducted by StepChange Debt Charity shows that personal loans are one of the most prominent debts for clients who seek debt advice – second behind credit cards. Make sure you can afford a loan otherwise you may end up struggling and falling into debt issues which can impact your credit score for any future lending.

Type of Debt Percentage of StepChange customers who had issues with debt
Personal Loan 48%
Payday Loan 17%
Credit Card 69%
Catalogue 35%
Overdraft 46%

Source: StepChange debt statistics

Remember to try and take your future circumstances into account, so that you plan to afford the loan for the duration of your agreement.

Finding a Reputable Lender

Even when they’re offering loans that are easy to get approved for, lenders are responsible for making sure that you can afford to make repayments.

Always check for regulated lenders on the Financial Services Register. Lenders not listed on this register might offer easy loans with high approval rates, but may not be acting legally and won’t be under the watchful eye of the Financial Conduct Authority. They’re more likely to approve you for loans you can’t afford, or to hassle you to get their money back.

How Can Money Savings Advice Help You With Getting a Loan?

Here at Money Savings Advice, we have partnered with some of the UK’s leading loan broker companies. They have already helped thousands of people get the best loan that suits their needs, and they can do the same for you.

Choosing an independent loan broker means they won’t proceed with an application unless they are sure it is in your best interests. They are also regulated by the FCA, which gives you an additional layer of protection.

If you would like to speak to one of these loan brokers who can help you get a loan, then click on the below and answer the very simple questions.



Ignatius Uirab

Ignatius is one of our leading financial specialists. With over eight years of financial experience, he has vast experience and knowledge of the financial sector. When he is not writing about how to make your money go further, he is a true family man.

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