No credit check loans UK – what do you need to know?
More and more websites appear all the time offering British consumers no credit check loans UK.
These companies offer you no credit check loans of between £80 and £2,000. They are short term loans meaning that you have up to 12 months to pay back the amount you borrowed plus interest charges on top.
So, what do you need to know about no credit check loans UK?
No credit check loans UK
What is a credit check?
There are two types of credit check – “soft” and “full”.
If a short term loan provider wants to make a full credit check, they get to know everything about how much debt you are in and how well you are handling your accounts. It’s not just your mortgage, loan or credit card accounts, it includes store accounts, gas and electricity accounts, mobile phone accounts and more.
The full report will show whether you’ve been making payments on time to the companies you hold accounts with. Every time you make a payment on an account, you get a tick. If you fall behind on an account, it shows any company looking at your file how many months you are behind.
Most lenders, including short term loan companies and payday lenders, use full credit reports. And every time a company performs a full credit check on you, it stays on your record for twelve months.
The reason they use full credit checks is that, under the law, all short term loan providers and payday loan companies have to perform checks to confirm that you can afford to pay back the money you are asking for plus interest.
If they see that you are behind on a number of accounts, it makes them more likely to say “no” to you or, if they say “yes”, to charge a higher interest rate on your loan.
Either way, if you are accepted, it will be a short term loan matched to you and your circumstances.
The other type of credit check is a soft credit check.
Unlike with a full check, a soft check does not appear on your credit file. That is why so many lenders offering no credit check loans advertise them as having no credit checks – because other companies who check your report later can’t see the soft check that they made.
Soft credit checks are snapshots of your credit report. They do not contain all the records of a full credit check. They contain information about your credit worthiness, your identity, your employment status, but not much else.
If there are lots of full checks on your credit report, it makes some lenders a little nervous if you want to borrow money from them. So, is the soft credit check or no credit check loans route the way to go for you?
Should I consider no credit check loans UK?
The only way to decide whether it is right for you is to understand what the process is for a so-called no credit check loan provider.
A no credit check loan company will do soft checks on you, despite what they say. They will also check to see that you are not bankrupt or have agreed to enter an Individual Voluntary Arrangement.
When they come back with an answer, it could be either a “yes” or a “no”. If it is not a “yes”, it’s a preliminary “yes”. What does that mean to you?
You will find plenty of brokers out there promising on their home pages that they don’t do credit checks if you apply for a loan with them. Look closely at the small print though and while the brokers will say that they perform a soft check, they eventually admit that the lender they try to match you up with will do a full check.
You will spend a lot of time and effort trying to find a no credit check loans company. It will take a long time and be frustrating. And at the end, you will have been searching for hours only to find that all the Google results you got back when searching “no credit check loans UK” were not what they appeared.
Do CashLady offer no credit check loans?
CashLady and our panel of short term loan providers are responsible. Nobody wants to give out a loan to someone when it will make their financial situation even worse. CashLady is here to help people – that is why customers rate our service as “excellent” on Reviews.co.uk.
With “no credit check loans”, things are not always as they appear. When you apply through CashLady for a short term loan, we use all the information you provide us with on our affordability checker and we sometimes do a soft credit check too.
That means that, when the time comes to present you to the lenders whose unique lending criteria you best fit, you have got the best chance of getting the outcome you want.
And remember, we can confidently say that our acceptance rate for customers is better than any single direct lender you approach, whether the loan is full credit- or soft credit-checked.
Starting your application with CashLady is easy. Just click here to get started.