Why can I not get guaranteed finance?
There’s one very simple reason why offering guaranteed finance is not possible – it may not be in your best interest. What we mean by this is, it’s the responsibly of the finance company to make sure that you are able to pay back the money you’ve borrowed – it’s part of the Financial Conduct Authority’s rules for finance companies lending money.
So, the finance company will look at your circumstances, your incomings and outgoings and whether you’ve been able to pay your debts back when you’ve borrowed money before. They do this by checking your credit history – this is why we ask for your address for the last three years.
Your credit history shows the money you currently owe, to whom and whether you pay the monthly payments on time. This affordability check benefits you as well as the finance provider, by making sure that you get the right decision for your finances and your well being.
The finance provider then looks at their list of requirements for lending to see if you meet them (we don’t know what all these are, nobody does, only the company themselves). They may have all kinds of reasons why they will or won’t lend to someone. Some of the reasons might not even be to do with your ability to pay the monthly payments.
As you can see, it’s really not that straightforward and anyone claiming to offer guaranteed finance is not being completely truthful.