Is it really possible to borrow money from a no credit check loans direct lender?
You’ll find there are lots of brokers and dealers who claim it is possible. They claim that there are dozens of lenders who will give you between £80 and £2,000 even though they have little or no information about you.
Would you lend money to someone you had never heard of before at the other end of the country?
Is your answer “no” as well?
CashLady investigates no credit check loans direct lender to see if they really exist and, if they do, what you can expect from them.
No credit check loans direct lender
Every company that lends money to consumers in the UK has to have authorisation from the Financial Conduct Authority (FCA).
If a company is involved in short-term loans, there is a whole extra layer of tests it has to go through before it can be FCA-authorised.
Let’s look at the two main rules short-term loan companies and payday loan providers have to stick to – how much they are allowed to charge you in interest and other fees, and how the FCA expects a loan provider to decide whether to give you a loan or not.
No credit check loans interest rates
Payday loans generally last for no more than 35 days. When the loan is due, you pay back the original amount plus the interest on top.
Short-term loans last between 2 months and 12 months. With short-term loans, you pay back the original amount plus the interest on top in monthly instalments.
When it comes to how much they can charge you, these are the rules:
You can’t be charged more than 0.8% per day (that is £24 per month on every £100 you borrow)
If you fall into arrears, you can’t pay a penalty fee that is more than £15
Over the course of the loan, your lenders must never try to make you pay more in interest and charges than the amount of the original loan. So, if you borrow £200, you should never pay back more than £400 in total.
These rules are there for your protection. If any short-term loan company or payday lender breaks them, the FCA can take away their authorisation. Without FCA authorisation, a company cannot legally lend money to anyone.
No credit check loans instant decision
Payday loan providers and short-term loan companies use really clever and sophisticated software to help them come to lending decisions.
In the old days, a loan application would take weeks. The new type of lenders that we work with look at hundreds of different factors every time someone fills in their details for a loan. A decision can be made in just seconds.
When you apply through a no credit check direct lender, they start off by carrying out a soft credit check.
That confirms to them some basic details like who you are, where you live, and so on. Put that together with the information you give them on your application form and they can give you an in-principle “yes” or “no” to your loan request.
To make their final decision – so you can get a firm “yes” or “no” – they need to do a full check on your credit file.
Just like the way the interest and charges you pay on a loan is governed by the FCA, so is the amount of information and checking a payday loan company or short-term loan provider has to do to process your application and give you a decision.
No credit check loans direct lenders on broker sites
You will never read on a lender’s website that “we are no credit check loans direct lender”.
But you will read on some brokers’ sites that “we work with no credit check loans direct lender”. This is a play on words – “no credit check” means that they initially use a soft credit check. A soft credit check is like “no credit check” because it leaves no footprint on your credit file.o
No matter who a broker delivers your loan to, the lender will always have to perform a full credit check if they give you an in-principle “yes” and you ask them to take the application further.
If you find a no credit check loans direct lender either online or they visit your home, they are trading illegally. They will not be authorised by the FCA and they may charge you a lot more than you would pay to an FCA-authorised direct lender.
No credit check loans direct lender application
CashLady can tell you with a lot of confidence that you will not be able to make a no credit check loans direct lender application anywhere unless the lender is an illegal loan shark.
CashLady is an FCA-authorised broker and we only work with FCA-authorised payday loan and short term credit providers. After years of working with them, we trust our lending partners to treat you fairly and to be open, straight up, and transparent with you.
We are honest with you from the start – no playing around with words to trick you into believing something when it’s not true. Our lending panel shares the very same values.
Let us do what we do best – match you and your circumstances up with the lenders who want to speak with you.