Want to know about whether you should deal with a no credit check loans broker?
No credit check loan brokers seem to be springing up everywhere at the moment. For many would be borrowers nervous that a credit check would disqualify them from finance, this seems like a brilliant development.
But what are they actually offering?
Can there really be such things as no credit check loans brokers? If a broker really had a panel of lenders willing to lend to anyone and not check out who they were and their personal situations, then does that mean everyone gets a “yes” when they apply?
If you think something smells funny, you are right. CashLady gives you the breakdown of what no credit check loans brokers mean when they say they offer no credit check loans.
No credit check loans broker
There are no such things as no credit check loan brokers. Brokers are middlemen – they pair up borrowers with lenders. The way they do this is to look at the type of customer a finance company likes to lend money to and then matches them up to particular borrowers.
So, for a no credit check loans broker to exist, there has to be a number of no credit check loan lenders.
There are not any no credit check loan lenders. They do not exist.
Short term finance companies and payday lenders underwent very stringent tests by the Financial Conduct Authority in 2014 to make sure that they were fair and open with customers. If they did not pass, they went out of business.
One of the ways that short term loan companies and payday loan providers prove they are “fair” is by not lending money to people who can not afford to make the repayments. To do that, every lender has to know about a customer and their personal circumstances.
You might read on a no credit check loans broker website that they do “soft searches” on your credit file which leave no footprint.
That is right but a soft search does not tell a lender everything they need to know about a borrower. If a lender gave a borrower money on the strength of what is on their soft search, that would be “unfair” and irresponsible.
What they are not so clear about is that when they have found a lender who is interested in lending you money, it is not a firm “yes”. You will only get a firm “yes” once the lender has done a full credit search on you and you meet their criteria.
No credit check loans broker – fact versus fiction
On one well-known broker website, you can find the following –
- “No Credit Check Payday Loans for Bad Credit” and “We only conduct a soft search: No credit footprint”
- “We do not carry out any form of credit history check but instead require some alternative information such as address details, monthly salary and employment history.”
- “We will never directly carry out a credit history check when it comes to applying for one of our bad credit loans.”
And then, buried in the FAQ page is the following…
“We will not carry out any credit checks during the application process. The lender that you are referred to may choose to do so. You should always read the Lender’s term before proceeding with any loan agreement.”
This broker knows that every lender they will pass a client’s details onto will perform a credit check. They are relying on a visitor who might be in a distressing financial position to read through pages and pages of legal jargon.
On another high-ranking site on Google, you will find –
- “[Company Name} is a broker which can get you a payday loans no credit check that will give you cash today”
- “As long as you have a job, a place to live, and a bank account you can probably get a payday loan with no credit check.”
- “Considering how fast, convenient, and friendly our service is, you would think that we would charge you an arm and a leg to get you a payday loans with no credit check”
The fact that the lenders this website brokers for will put their applicants through a full credit check is not listed on their “How It Works”, “About”, “Advice” or even their “Responsible Lending” page.
To find it, you have to scroll right down to the bottom of the application form where it says in very small letters, “I accept that a credit check from a credit bureau may be undertaken”.
No credit check loans broker and CashLady
CashLady is an FCA-approved, long-standing, highly-trusted broker. We have worked for many years with borrowers and lenders, matching them in a way that suits everyone.
We work with a panel of trusted lenders all of which have a unique lending criteria. We pair the right customer up with the right finance company. And we and our lenders do everything openly and transparently.
This is your money and this is your life. Only deal with companies that tell you the truth from the start. We’ve been warning our visitors for months about no credit check loan brokers.
We said “Steer clear of websites that offer online loans with no credit check. These put you at a high risk of being a loan shark victim or caught up in a debt spiral…Loan sharks can harass and threaten if you do not make regular payments. It is important to protect yourself from them.”
Do CashLady offer no credit check loans?
CashLady do not offer no credit check loans. CashLady are not no credit check loan brokers.
We offer responsible, fair, and quick finance to our customers. By applying through us, your chance of getting the right loan for you is much higher than going directly to lenders.
Deal with CashLady – we tell the truth about everything, including no credit check loan brokers. To start your application with CashLady, click here.