Search Google for “no credit check loans online” and you will get plenty of results. The question is whether everything is at it appears.
The world of no credit check loans online is complicated. It is quite difficult to know who exactly is offering what. Do no credit check loans online really exist and are the companies who are offering it actually able to provide no credit check loans online?
Apply online for no credit check loans
Finding a company that offers no credit check loans online is impossible. Any company providing short term loans in the UK must carry out credit checks on potential borrowers.
In reality, there’s no such thing as a lender or a broker which provides no credit checks online.
There are companies, few and far between, who will consider soft credit check loans backed up by an affordability check. What is this and how does it work?
No credit check loans online
A soft credit check tells a lender about your creditworthiness and confirms your identity, your address, and sometimes your employment status.
When a lender does a soft credit check on you, it leaves no trace on your credit report. That’s different from lenders which do a full credit check. A full credit check is recorded on your credit report and stays on there for twelve months.
A soft credit check has some useful information but not enough for a responsible and approved lender to make a really firm decision. If they had performed a full credit search on you, they would know much more. And it is the information they do not know about you that you need to worry about.
Legit no credit check loans online
When you apply for one of these so-called no credit check loans online, you will have to do an affordability check with the lender.
Because the lender does not know that much about you, the chances are that you may have to provide far more detail about yourself than the lender would have got from a full credit report anyway.
The credit reference agencies that provide either your full credit report or soft credit report are trusted by lenders. That means that, no offence to you, a lender is going to trust what you put on your affordability check less than they would trust what they find on a full credit report.
You might put in all that effort and time to fill out the affordability check and it may provide you with no advantage at all.
Finding a company that does no credit check loans online
It is really hard to find a no credit check loans online company which only does soft credit checks on applicants. There are not that many around. For nearly every lender, providing this type of no credit check loans online is far too risky.
CashLady says “beware online brokers offering no credit check loans online.”
Brokers will often advertise that they do no credit check loans online. And to a point, they are being truthful. Once they have got all your information, they will then perform a soft credit search as part of the process of finding the right lender for you.
The sting in the tale comes when they pass your details to the actual lender. The lender will do a full search on you as part of their lending decision process.
So you’ve gone to all that trouble, filled in all of those forms, believed you were going for a genuine no credit check loan online and it turns out you were going to get a full credit check anyway.
CashLady and no credit check loans online
Short term loans are heavily regulated – and that’s for your protection.
Every company in the UK offering short term credit to people must be regulated by the Financial Conduct Authority (FCA). They need to show they are authorised by the FCA because if they didn’t, they would not be able to offer loans legally.
The FCA is interested in your protection. They don’t want companies lending money to people who cannot afford to make the repayments. That is why, in 2014, all companies offering short term loans were made to undergo stringent tests to make sure they were fair, responsible, and transparent.
The FCA will not allow lenders to offer money with no credit checks. If they found out about a lender offering no credit check loans online, they would likely close them down straight away. That’s not responsible lending. They would likely get upset about any lender not taking the utmost care.
We at CashLady, an FCA-regulated broker, believe that borrowers need protecting from debts they can not afford and companies who would make that type of loan. We work with a panel of lenders each with their own lending criteria. Each company works best with certain types of customers. What CashLady does is match lender and borrower together.
CashLady no credit check loans online
The panel of lenders we work with are open-minded and fair about who they will lend money to. A credit check is nothing to be afraid of – just the opposite. It is there for your protection.
Given our connections to our lending panel, we can confidently say that if you apply through CashLady, you have a much better chance of being approved.
Why not put our fee-free service to the test? To start your application with CashLady, click here.