Can you get a guaranteed loan? 

Key takeaways

• No responsible lender can guarantee to offer a loan without a credit check

• If you have a poor credit history, you will usually be offered loans with higher interest rates

• Registering on the electoral roll and using credit builder cards can help improve your credit score

Can you get a guaranteed loan?

✖️ No. In the UK, you cannot get a truly "guaranteed" loan from a reputable, FCA-regulated lender.

All UK lenders regulated by the Financial Conduct Authority (FCA) must do the following as part of the application process:

✔ Perform credit checks

✔ Carry out affordability checks to check the borrower can afford the loan repayments

✔ Follow responsible lending practices

If you see a lender offering guaranteed loan acceptance or an instant decision for borrowers with bad credit, or guaranteed approval, it may be a scam.

💡 Top tip: It also might be an advert from a lead generation firm, rather than a direct lender. Lead generation firms sell the details on your application form to various lenders, such as those offering payday loans or other short term loans.

How do credit checks work for loans?

When you apply for a loan, the lender runs a credit check to assess your creditworthiness - in other words, how risky it would be to lend you money.

A credit check allows companies to assess how you have handled borrowing in the past, including whether you’ve kept up with monthly repayments.

These checks help lenders determine the risk involved in lending to you.

📣 Did you know? If you've been diligent with your finances, you're likely to have a high credit score. A high credit score signals to loan providers that you're a low-risk borrower.

What is a bad credit loan?

A bad credit loan is a type of loan designed for people with a low credit score or a limited credit history.

If you are offered a bad credit loan, it may have a higher interest rate. This can mean the total amount you repay will be higher than if you had a more competitive interest rate. You will be able to see the interest rate, representative APR, and how much you will repay in the representative example on the lender’s website.

What are the different types of credit check?

There are two types of credit check:

✔ Soft credit check - doesn’t affect your credit score and only you can see it on your credit report

✔ Hard credit check - can be seen by lenders and may cause your score to dip

How can I tell if I'm eligible for a loan?

Figuring out if you’re eligible for a loan means checking whether you meet the lender’s basic requirements and whether your credit profile matches what they’re looking for.

MoneySuperMarket offers a smart tool to help you gauge your eligibility for a loan. The eligibility checker uses a 'soft search' – a preliminary credit check that doesn't affect your credit score.

This tool gives you a clearer idea of the loans you're likely to qualify for without putting your credit rating at risk.

How does pre-approval work for loans?

Pre-approved loans are not a guarantee but rather an indication of a lender's preliminary willingness to lend, based on the information they have at the time.

It's important to remember that final approval is subject to unchanged personal details and additional checks, such as fraud prevention measures.

Can I get a loan with a bad credit score?

✔ Yes, you can often get a loan with poor credit. If you have a poor credit score, you may face higher interest rates and be offered smaller loan amounts, depending on the eligibility criteria for the loan.

If you have poor credit, you might be able to get one of the following loans:

• Secured loans for bad credit: A secured loan, where you offer collateral like your car or home, can provide lenders with the assurance they need to offer you a loan. While this can make it easier to obtain a loan, the risk is that you could lose your assets if you're unable to keep up with repayments.

• Guarantor loans: Another option for those with poor credit is a guarantor loan. This involves having someone else, like a family member or friend, guarantee to cover your repayments if you fail to do so. This gives lenders an added layer of security and can make them more willing to lend.

How can I improve my credit rating?

To improve your credit rating, start by registering to vote, as being on the electoral roll helps lenders verify your identity.

Regularly check your credit reports and credit score to spot and correct any errors. You can do this by signing up to MoneySupermarket’s SuperSaveClub.

Always make payments on time – this includes credit cards, loans, and household bills – and try to keep your credit usage below 30% of your available limit. Avoid making too many credit applications in a short period, as each hard check can lower your score.

Using a credit builder card responsibly – by spending small amounts and paying off the balance in full each month – can help build a positive history. Keep old bank accounts open where possible to show long-term credit use, and be cautious about linking your credit file with someone else’s through joint accounts.

What are the alternatives to guaranteed loans?

If you're considering a guaranteed acceptance loan but are concerned about high costs or scams, there are safer alternatives.

Credit unions offer fair, low-interest loans even to those with poor credit, while guarantor loans allow someone with good credit to co-sign and boost your chances of approval.

Bad credit personal loans from FCA-regulated lenders may also be available, and using soft eligibility checks helps you avoid damaging your credit score.

Other options include overdrafts and credit cards. An overdraft allows you to borrow from your bank via your credit account, while credit cards offer the flexibility to make purchases or shift balances, sometimes at promotional rates.

Avoid any lender that asks for upfront fees, promises “no credit check” approval, or isn’t FCA-authorised. If you regularly need to borrow money, seek professional help about your financial situation.

Where can I get debt advice?

🚩 If you're struggling with debt, you can get free debt advice from organizations such as StepChange, Citizens Advice, and National Debtline.

Comparing loans with MoneySuperMarket

Comparing loans with MoneySuperMarket is a straightforward process that won't impact your credit score. By answering a few questions, you can search a panel of lenders to find the best deals for which you're most likely to be approved.

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead, we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.