No Credit Check Loans

Is there Such Thing as No Credit Check Loans?

We can often hear about no credit check loans and you may wonder whether they actually exist and what they actually are. It can seem mad that lenders won’t do a credit check and some people might be aware that lenders are actually required to do a credit check by law. So, what is a no credit check loan?

What are no credit check loans?

It is good to understand that although there is no such thing as a n credit check loan, there are loans which could be very close to this. The reason there are none of them is that lenders have to do a credit check. However, there are different ways of doing a credit check and different reasons for it.

A normal credit check, often referred to as a hard credit check, will show the lender your credit report. It will also leave a trace on your credit report that the lender has made a check on it. This is something that many people do not like. This is because they feel that it will not look good on their credit report that lenders have been looking on there. This could especially be the case with short term lenders such as payday lenders and they worry that this might put off more traditional lenders. It is also the case that if lenders can see that lots of other lenders have been doing credit checks then it might them off. They may see it as an indication that you are desperate for money and that might put them off lending any money to you at all.

A soft credit check is a way of looking at a person’s credit report without it leaving a trace. This means that they will be able to take a look at a person’s ID as well as checking if they have a regular income and things like that. It can be useful to the lender but they will not leave any evidence that they have looked. It will be the same as if you had looked at it.

Who are they for?

You may wonder who the no credit check loans are for. They tend to be aimed at people who have a poor credit record and therefore want to do everything that they can which will keep their credit record as good as possible. It is also highly likely that they will not be able to get traditional loans because of their credit rating not being very good. This means that their only choice might be this sort of loan, where credit rating is not a factor in whether they are likely to be accepted for the loan. However, this sort of loan is also arranged very quickly. This means that if you need money in a hurry then they might be very useful for you. If you have no other means of borrowing that quickly and you need money in a real emergency then the loans can be extremely useful. It is therefore worth still considering this option even if you do have a good credit record.

Are they right for me?

If you have a good credit rating then you will be able to choose between lots of lenders, if you do not have a good credit rating then you may find that you will be limited to the no credit check loans. Therefore, if you do have a poor credit record then these loans could be right for you. However, even if you do have a good credit rating, it is best not to assume that these loans will not be any good for you. You never know whether they might have features which make them more attractive to you than other loans. They can be extremely quick to arrange which might be useful if you need money in an emergency and more traditional lenders might be a lot slower, so there could be situations where you will find them useful even if you have other options. It is always worth comparing everything that is available to you because it is important to make sure that you find the very best loan for the job. If you do not do this research and consider everything then you may regret your decision or find that you have a loan that is not best suited for what you want, that you cannot pay back easily or that is too expensive. It is well worth doing the research and spending the time doing it because you will be able to know that you have made the best possible decision that you could and you will not be able to regret your choice. Otherwise, if the loan turns out to not be the best decision for you, you may wish that you had taken a lot more time to make your decision.

Bad Credit Loans

Can I get Bad Credit Loans?

If you have a poor credit record then you may wonder whether you can get any loan, including bad credit loans. It can be a worry, especially if you need money in an emergency and wonder whether there will be any available to you. You may worry that your credit is just too bad to get a loan or something like that. There are some restrictions on bad credit payday loans and it is worth thinking about these to make sure that you will qualify.

Age

Lending is only allowed for those over the age of 18. This means that if you are younger than this then you will not be able to get a loan. This includes all types of loans and therefore you will only be able to borrow from people you know on an informal basis such as your parents. Hopefully if you are this young you will not have an urgent need to borrow money anyway.

Location

If you want to take out a UK loan then you need to be a UK resident. You will need to prove this as well by having something with your address on. This could include a driving licence or bank statement. It can sometimes be hard to prove your address if you do not pay any of the bills in the home and do not drive. However, there may be other methods to prove your address and the lender will be able to let you know what they can accept.

Income

You will need to have a regular income to get a loan. This is because the lender will need to see that you will be capable of repaying the loan. With something like a payday loan, they will want to set up a direct debit to repay the loan when you get paid. Therefore, they will need to see evidence that you are getting paid. All lenders will want to see that you have money coming in. However, do not worry if you are not earning, it could be that you have benefits or pensions coming in regularly and these will count as being an income. Some lenders might be less willing to lend to those who are not earning but it will vary between lenders. It can be worth checking with them in order to find out.

Bank Account

You will need a bank account to be able to get a loan. This is because the lender will want to set up a direct debit form the account to repay the loan. Therefore, you will need to be able to provide with that facility. Most people do have an account that is capable of having direct debits set up from them though and it is easy to get one if you do not.

Other loans

There may be some restrictions on getting loans if you already have them. This is because there is a rule that a short-term lender is not allowed to give someone more than one loan at once. This make sense because it could mean that the loans will be really difficult to repay. People may also end up getting a loan to repay another and that can lead to problems as well. It may be possible to get a loan from one short-term lender if you have a loan with another though. It is not really a sensible thing to do though as you may then struggle to repay them both.

Apart from these general restrictions you will find that there are possibly some lenders which have their own restrictions too. However, most lenders will want to encourage people to borrow form them and therefore will not have many rules with regards to who can borrow from them. This means that even if you feel that you are unlikely to get a loan, you will be likely to be able to get a bad credit loan. Other types of loans will have far more restrictions including wanting a person to have a good credit report and therefore it is more likely that you will be turned down for these.

It is well worth finding out about different loans and what requirements they have of lenders. This will allow you to assess the market and to work out what borrowing options you have. You may find that there will be a lot more options that you expected and it could be a good surprise. It is wise though, to still compare loans and lenders even if you have a small choice. You could find that they will vary in price and how they work and it is important to find the one that you think will offer you the best value for money, good repayment terms and everything else that you are looking for in a lender.