The loans that you can apply for through the CashLady site are not guaranteed acceptance loans. We are a licensed and regulated credit broker by the Financial Conduct Authority (FCA) and will only work with lenders also licensed and regulated by the FCA and perform the necessary checks to ensure that you can afford to repay the credit you are applying for a loan.
The loans we help our clients find are quick loans and can be paid into your account the same day* if your request is accepted by one of our lending partners.
What is a secured loan?
A secured loan would be considered a loan that you are certain to be accepted for, regardless of your personal circumstances, affordability, or credit rating. We do not offer secured loans through the CashLady site, and we never suggest that you should proceed with a secured loan.
Why are secured loans a bad idea?
In the UK, loan providers and credit brokers are authorized and regulated by the Financial Conduct Authority (FCA). The FCA requires lenders to verify that a potential customer can afford to repay the money they are asking to borrow.
Brokers and lenders do this by performing a credit check and also asking the client about their financial inflows and outflows, as well as other circumstances such as employment status, number of dependents and existing debts.
If, on the basis of the information received by a lender, it considers it unlikely that the customer will not be able to make its repayments, it will refuse the request of that customer. This is the best course of action for the lender, but also for the customer – as it is likely that lending money to that customer will result in missed or late repayments, which will damage the credit score of the client. customer and will cause financial hardship in the future.
Thus, any business that is willing to lend money to a client without performing these checks is not authorized or regulated by the FCA, and as such, the client will not be able to claim any of the protections of the FCA, nor to any compensation under the financial services compensation scheme. (FSCS) in the event of a problem.
Simply put, taking out a loan from a lender that is not authorized and regulated by the FCA is a very bad idea and should not be pursued. You can check if a lender is regulated by using the Financial Services Registry that you can find here.
Check your eligibility
So, if secured loans are not recommended, what are the alternatives?
Well, what you might not realize is that you can check your eligibility for a loan today without damaging your credit score. Simply complete our request form here and we’ll show your request to each of the 30+ lenders on our panel to find the lender most likely to accept your request, at the lowest APR available.
We use soft search technology, so we don’t perform a credit search on you – it doesn’t leave any footprints on your credit report or affect your credit score.
It is not a secured loan, but it could help you find a loan that you are likely to be accepted for.
Improve the chances of your loan application being approved
If you are considering applying for a secured loan, it might be because you are worried about being accepted for a regular loan application from a reputable lender. In this case, it may be a good idea for you to take steps to improve your chances of acceptance in the future.
Focus on improving your credit score. To do this, you can:
- Make sure you are registered on the electoral roll. This provides lenders with proof of your identity and shows that you have a stable address.
- Reduce your level of credit usage. For example, if you have a credit card with a limit of £ 2,000 and your balance is still £ 1,900, your usage is 95%. Aim for this number to be less than 30% and this will show potential lenders that you are managing your credit well.
- Pay your bills on time, such as utility and telephone bills. Set up direct debit to make sure you never forget to make a payment.
- Regularly review your credit report and correct any errors you spot. Nowadays, it is free to check your report through various apps and services. We can recommend Credit Karma and Credit Monitor.
For more details on how you can improve your credit score, you can check out this article on the Money Helper website.