Pre-approved Loans & Poor Credit

hdr

Hi,
I've been repairing my credit now for nearly 2 years. I'm still in the 'very poor' category. But one of the online tools I use (clearscore) has offered me a pre-approved loan via 118118 Money. I am considering applying which will pay off an even higher interest loan and give me some money to move home. 
My question is: Will they loan be guaranteed because it's saying it's been pre-approved or could I still be turned down for it? I don't really want another hard search on my credit file but willing to go for it if I know I can get the loan.

Thanks 

[Deleted User]

You could still be turned down, i don't think any of them are actually guaranteed, let's see what @sourcrates and @Deleted_User etc think .....

hdr

Thanks for the reply. I could really do with the loan right now but don't want to take the risk of getting declined and then having another hit on my credit file. I've only had 3 hard searches this year but Clearscore is saying that's bad.

sourcrates

Save up to move, don`t borrow more high interest money that`s how the spiral of debt catches up with you, you keep consolodating, hense the debt never get`s repaid, and you never get out of it.

118118`s interest charges are out of this world, the lesson was there to learn the first time you did it, don`t do it again.

hdr

sourcrates said:

Save up to move, don`t borrow more high interest money that`s how the spiral of debt catches up with you, you keep consolodating, hense the debt never get`s repaid, and you never get out of it.

118118`s interest charges are out of this world, the lesson was there to learn the first time you did it, don`t do it again.

Wish it was that simple. The loan I have at the moment is almost twice the interest what 118118 are offering. Plus I will be homeless in less than 4 weeks time and need any financial help I can get right now. I work full time and can afford the repayments as they are only £10 more per month than what I will be consolidating. 

[Deleted User]

You stand a chance of being declined, but given the comparison in rates and your situation, you may as well apply for the sake of one search.

But borrow the absolute minimum, pay off the higher rate loan and pay it all back as fast as you can.

yksi

I'd apply for it. I have been knocked back for a guaranteed loan (it seems that I have an address snag in my file) but I think I'm an exception.

foxy-stoat

It doesn't matter if you get a decline, the only thing that appears on your credit file is a search.  You have bigger things to worry about if your considering a 118118 loan at 99.9% interest.

hdr

foxy-stoat said:

It doesn't matter if you get a decline, the only thing that appears on your credit file is a search.  You have bigger things to worry about if your considering a 118118 loan at 99.9% interest.

I think it was offered at 59.9%; which is cheaper than the loan I will pay off with the money which is 89.9%.
Also, isn't a search on your record a bad thing?

[Deleted User]

hdr said:

Also, isn't a search on your record a bad thing?

No.  It's the only way to get credit.

hdr

Deleted_User said:

hdr said:

Also, isn't a search on your record a bad thing?

No.  It's the only way to get credit.

True that! But when I check my credit file it's telling me that too many Hard Searches are not good for me. I've made 3 this year. 2 were for car insurance and 1 for a mobile phone from Sky. Apparently that's too many?!