No credit check loans are provided by certain lending organizations in the UK. This type of loan is offered to applicants without running a soft credit check or checking their credit score. No credit check loans uk can be availed online and have proved to be popular among people with poor credit scores.
The 3 main credit reporting agencies are TransUnion, Experian and Equifax. These agencies prepare credit reports which are obtained by lenders when an applicant wants to avail a no credit check loan in the UK.
When you apply for any kind of loan such as personal loans, student loans, car loans, mortgages, etc. The lending organization will decide to avail you the loan based on your credit report procured from the credit reporting agencies. This will determine if you are a trustworthy applicant. There basic eligibility criteria for availing a no credit check in the UK is listed below.
- Applicant should be at least 18 years old.
- Applicant should have a steady source of income.
- Applicant should be residing in the UK.
- Applicant should have an active bank account.
Some of the main benefits of availing a no credit check loan in the UK are listed below.
- It is easy to apply for a no credit check loan. The entire loan application process can be done online with just basic information of the applicant required.
- There are no traditional credit checks carried out when availing a no credit check loan in the UK, some lenders may conduct soft search checks but they will not appear on your credit report.
- Your loan application and loan amount is confidential. All personal information is securely encrypted including any transactions between the applicant and the lender.
- When applying for a no credit check loan in the UK, the status of your application (approved or declined) will be known within minutes of submission.
- This type of loan is short term, the repayment period lenders offer are from 14 to 31 days for payday loans and upto 1 year for installment loans.
- It is easy to qualify for a no credit check loan in the UK, your ability to repay the loan amount on time is the most important factor lenders will consider.
- The loan amount will be deposited to your bank account within the same working day, once you have been approved for a no credit check loan in the UK.
- A no credit check loan requires minimum to no paperwork as everything is carried out online, making the process much faster. However, certain lenders may require additional documents to be submitted.
It is possible for you to procure a loan with bad credit, this is one of the reasons why no credit check loans exist. Many lenders who offer this loan understand that people may struggle to find money in a financial emergency. The benefit is that there is no collateral needed to avail a no credit check loan in the UK, however they can have high interest rates and short payback periods.
If you can prove that you are a trustworthy individual capable of paying back the loan amount on time, the lender is more likely to approve your loan application without conducting a credit check.
No credit check loans are often referred to short term loans or payday loans. Be availing this type of loan, ensure that you closely examine the terms and conditions of the loan as well as the lender. If payments are neglected it could have a significant impact and worsen your bad credit score even more.
Another surefire way to increase your loan offers is to improve your bad credit score. Regardless of how bad your credit rating is, there are ways you can boost your score over time, some of which are listed below.
- Prove that you are financially responsible by ensuring to make the monthly loan repayments on time and before the due date. Refrain from any unnecessary expenditure and borrow only within your means. Additionally, you might also want to reach out to a financial services provider such as creditsesame for some advice and support to help you to improve your credit score.
- Registering on the electoral roll is one of the easiest ways to improve your credit score. Lenders will perceive you to be reliable since you are a registered citizen.
- Terminate old and unused bank accounts that you no longer use as you are still paying service charges and operating fees for those unused accounts.
- Cut off any financial links with unreliable partners as combined financial statements tend to invite more scrutiny from the lending organization. Ensure that you submit a ‘Notice of Disassociation’ to all 3 credit rating agencies.
- Obtain a credit card but only if you are capable of clearing the monthly expenses. Using a credit card can quickly lead to an increase of your credit score however, if you fail to make payments on time, your credit score will be severely impacted.
In case you cannot make a particular loan repayment, it is better to inform your lender beforehand. Late payments are considered to be a red flag as it shows that you are having a hard time keeping up with your expenditures. Even when availing no check credit loan, do not neglect the monthly payments, they will have a large effect on the principal amount and could lead to your interest rate being doubled.