What Are No Credit Check Loans?
Several lenders offer what's known as a no credit check loan. Contrary to popular belief, there is no such thing as no credit check loans. Lenders either perform a "soft" credit check to not impact your credit score or a hard credit check which will affect your score. When you apply for a loan via PaydayLoansUK, our partner lenders will only perform a "soft" search on your credit file using proprietary technology to check your eligibility for approval.
Are No Credit Check Loans Safe?
The short answer is yes! There is a common misconception that these loans are unsafe. But the truth is, borrowers in the UK are well protected from predatory lending practices. As long as you choose reputable FCA authorized lenders and brokers, your finances are well protected. In actual fact, lenders will either perform a "soft" credit check coined as a "no" credit check before approving your loan. As long as you understand the terms of your loan and ensure that you can afford the repayments, there should be nothing to worry about.
Hard & Soft Credit Checks Explained
A credit check is when a lender, such as a bank or credit card company, looks at your credit history. This helps them decide if they want to lend money to you (for example, for a mortgage or credit card) and at what interest rate.
A "soft" credit check is when your lender does an initial check on your credit history to get an idea of how risky it would be for them to lend you money. It doesn't affect your credit rating and won't appear on your credit report.
A "hard" credit check is when they do a more detailed examination of your credit history. This can happen if they are considering lending you money or if you have opened an account with them. These do show up on your credit record, and having too many in one go can negatively affect your chances of getting approved for credit.
How to Get a Loan Without a Hard Credit Check?
So you want to get a loan, but you're worried about your credit rating? Don't be! PaydayLoansUK offers a loan alternative that allows you to apply for a credit check loan with soft check method only.
But what does that mean for you? Well, it's pretty simple: no hard credit check means our lenders will only perform a “soft” check. We'll match you with a lender from our network who will provide an offer based on the information you provide in your application. You can then choose whether or not to accept the offer, and if you do, the lender will deposit the money directly into your bank account.
This approach has several advantages: firstly, there's no potential for damaging your score as “soft” check will not impact anything. Secondly, our process is quick and easy—you can get an answer quickly by filling out our online application form.
Common Types of No Hard Credit Check Loans
No credit check loans are precisely what they sound like—they're loans that don't require a "hard" credit check. This means they can be a viable option for people with a low credit score or none. These types of loans vary quite a bit in the application process, approval requirements, and repayment processes, so it's essential to know the differences between them to make sure you choose the right type of loan. If you're considering getting a no hard credit check loan, here are some common types you should be aware of:
Personal Loans
Personal loan amounts depend on your credit score (or lack thereof). Since they are “personal loans”, there is no say on what you can spend them for. They can be a good option for many situations. They have flexible repayment schedules, making them a desirable option for people with all credit scores.
Payday Loans
One of the most common types of no hard credit check loans is the payday loan. These loans are kind of short-term loans and are intended to cover any immediate expenses you may have until your next payday. Payday loans can be helpful if you have an emergency and need to take care of it right away.
Want to Get a Loan?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
When Do I Need to Take Out a Loan With No Hard Credit Check?
Tight cash flow before salary
To ensure that you don't pay any late fees and penalties for nonpayment, getting a loan will help you with the expenses until your next paycheck arrives.
In need of a small amount of cash
If you need to borrow money and pay it back relatively quickly, then it might make sense to consider a no-credit-check loan.
Urgent need for money
An emergency can quickly put a person under financial strain. It's important to know that options are available that don't involve putting your credit score at risk.
No option for conventional loans
If you have a poor credit score and have been denied conventional loans in the past, then PaydayLoansUK will match you with a range of trusted lenders.
How Can I Improve My Credit Score?
Make Timely Payments
Making timely payments is the first step toward improving your credit score. You can build up a better track record by paying off balances and avoiding any new debt.
Don’t Open Unnecessary Credit Lines
Opening unnecessary credit lines is a sure way to hurt your credit score. If you don’t need it, don’t apply for it.
Keep In Touch With Your Credit Score
It's a good idea to keep tabs on your credit score. It will likely go out of control if you don't understand how to improve your score.
Clear Your Debts
Removing any active debt on your credit report is a great way to improve your credit score—simply by making payments on time and in full. This one step can make a massive difference.
Mind Utilization
Paying attention to credit and utilization is one of the best ways to build positive credit history and increase your score. The less you spend over time, the lower your utilization rates.
FAQs
Do No Credit Check Loans Really Exist?
We've been hearing about so-called no credit check loans. While some of them are legitimate, many are not. There is no such thing as an actual no credit check loan. An applicant must pass a "soft" check to be approved for a no-credit-check loan.
Why Do Banks Conduct Credit Checks?
Banks conduct credit checks for a few reasons to minimize risk when offering loans. Credit checks help banks analyze applicants borrowing and repaying debt history.
What Are the Eligibility Requirements for Loans With No Hard Credit Check?
You must meet specific eligibility requirements to qualify for a loan with no hard credit check. Here they are:
- You must be at least 18 years of age.
- You must be a current UK resident.
- Employed with proof of regular income.
How Soon Will I Receive My Money?
Many of our lenders can review your application and approve it within minutes. If approved, you could receive the money as soon as possible!
How Much I Can Get?
How much you can get for a no credit check loan depends on your income and credit history. It highly depends on the lender and what their policies are.
