⏱Last Updated on
Quick loans with no credit: what is bad credit?
You may have a bad credit score, or poor credit if you have failed to make repayments on a loan or pay bills, in the past. Sometimes people who have never borrowed money at all, have a poor credit history because they have no credit history. A bad credit rating can mean you are viewed as a riskier borrower for lending companies. They will be less likely to offer you a loan. But can you apply for quick loans with no credit rating?
How do I know if I have a low, or poor credit rating?
If you have a poor financial history, debt, or know you have not paid bills in the past. You probably know you have a bad credit rating. If you are not sure what your credit rating is, or why it is low, you could use a website such as experian.co.uk. A site like Experian will give you a credit check and score and can outline where your bad credit rating has come from, and how you can fix it.
Using a credit scoring site will conduct a credit check. If you have had many credit checks this can also give you an adverse credit rating.
Every time you apply for a loan, credit card, mobile phone account, and many other financial agreements, a credit check will be carried out by the provider.
Can I get a quick loan with no credit or a poor credit rating?
If you have a poor credit rating, you may still be able to get a quick loan. It will depend on your current financial situation and your financial history. There is no guarantee. A quick loan is an unsecured short-term loan. Also called payday loans, you will usually need to repay them by your next payday, or shortly after.
Any quick loan lender will conduct an affordability and credit check. To get a quick loan you also need to:
- Be employed and earning at least £500 per month
- Be living in the UK
- Have a UK bank account
- Have a working email address and mobile phone
Rather than applying to many different loan providers to see if you are successful, a better option may be to use a loan broker. A loan broker, such as CashLady, has a panel of many loan providers. When you apply for a loan with a loan broker you complete one application form, which is then sent to loan providers who might approve you. Instead of multiple credit checks, one credit check is completed by the loan broker. The final lender may complete another.
What happens if I can’t get a quick loan?
If you are refused quick loans with no credit there are alternatives. However, if you struggle each month to manage your finances, and have a poor credit rating you should seek advice on how to improve your financial situation on a permanent basis.
What are the alternatives to quick loans with no credit rating?
There are possible alternatives to quick loans. As with any type of lending make sure you are using an approved, reputable company.
Credit cards and overdrafts
If you have a credit card and use it you must try to pay back more than the minimum monthly repayment. Otherwise, you will accumulate interest every month and find it difficult to ever pay off your card.
Overdrafts can have initial charges when you go overdrawn, daily charges and high-interest rates. You should always understand what and when you will be charged.
Logbook loans and pawnbrokers
Taking a logbook loan against your vehicle can be a way to borrow money. It is risky, especially if you use your vehicle to get to work or transport your family. If you don’t repay your logbook loan you could lose your vehicle.
Borrowing from friends and family
You may be able to borrow money from a friend or family member. This could work if you pay the money back on time. You should consider what might happen if you are unable to, or if they need the money sooner. Money is a common reason for families and friends to disagree and move apart.
Ask for a pay advance from your employer
It will be up to your individual employer as to whether they agree or not but if you have a dire emergency it is worth asking the question.
Local welfare assistance or citizens advice
If you are struggling to pay for essentials such as food and heating your local welfare assistance might help. If you have exhausted all options and are in a poor financial situation you should look for professional advice. Websites such as the Money Advice Service www.moneyadviceservice.org.uk might give you more information. Your local Citizens Advice can give you professional, in person, help and point you in the direction of other organisations who may be able to offer advice to help you get your finances back on track.