What Are No Credit Check Loans?
A credit check is always necessary to evaluate the risk in lending a loan to a borrower. The difference lies between hard credit checks and soft credit checks. The latter doesn’t concern a full-fledged detailed review, and neither does it add a ‘credit check inquiry’ to your existing below-average credit rating. This makes it ideal for people with bad credit ratings to apply for a no credit check loan.
No credit check loans don’t involve hard credit checks, which is why it’s balanced out by critically evaluating other factors, especially sustainable income.
If a lender comes to the conclusion that a borrower is capable of repaying the loan according to their regular income, you can receive a loan despite the bad credit. The downside of no credit check loans is that they come with high-interest rates due to the risk the lender is taking with a bad credit borrower.
Types of No Credit Check Loans
When a bad credit rating is stressing you out, if you need to borrow a loan, you can choose to opt for a no credit check loan. But even no credit check loans are further divided into types, and knowing the features of each can help you decide the one that’s right for you.
Payday Loans
Payday loans are the best type when you need money immediately for a sudden emergency. If you haven’t guessed from the name already, payday loans are of small amounts that need to be repaid within a few days or weeks from receiving them.
A plus point of payday loans for no credit check is that the APR won’t be higher than 28%.
Personal Loans
Personal loans are meant for borrowing higher amounts than you can borrow from payday loans. Additionally, you don’t have to manage your expenses and repay the loan within weeks. These loans can be repaid over a few months on a monthly instalment system. Along with the longer repayment period, the interest charges are lower.
Credit Union Loans
Credit unions offer services that enable their members to borrow a small personal loan that lets them pay off their expenses or get rid of previous debt. Like other no credit check loan types, they don’t focus on your credit history. Even those with no prior credit history can apply for a loan to build one. The maximum interest rate with credit union loans is capped at 18%.
Are No Credit Check Loans Reliable?
To ensure that you don’t get financially ripped off or land yourself in more debt than you began with, you need to see that the no credit check loan you’re applying for is through a credible lender.
Firstly, even the most flexible lenders have to perform a soft credit check in compliance with FCA guidelines. A lender ready to give money without any questions or inquiries about your past financial dealings is a sign of trouble.
Always look for FCA authorisation when applying directly to a lender for a no credit check loan. FCA policies regulate consumer protection, so you don’t have to spiral into debt from hidden charges or more interest rates than the maximum specified limit, i.e., 100% of the loan.
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Get StartedHow to Find The Best No Credit Check Loans?
With more and more lenders entering the market and each promising to offer the best loans and rates, it can get overwhelming. To make a decision you won’t regret later when applying for a no credit check loan; you need to check for the following factors:
What Are the APR and Interest Charges?
Lenders have varying APR and interest charges, although a specific limit is set under FCA regulations. If a lender hasn’t already disclosed the APR and interest rates during loan approval processing, inquire about it and compare it to the charges of different lenders.
Is the Lender Calculating Repayment Ability?
Lenders that guarantee a no credit check loan without any previous credit dealings, financial transactions, and monthly income is a scam you need to avoid. They’re either involved in malpractice or are not FCA authorised. These lenders can put you in a debt trap with unregulated high-interest charges and APR.
What Are the Repayment Terms?
Understand the repayment terms and assess whether a certain lender’s repayment period will let you clear your debt timely. The repayment duration also depends on the loan type you choose.
If you think you can’t repay the amount within the set duration, go for a long-term loan such as a personal loan or delay the repayment period as long as it doesn’t add up more interest charges than you can handle.
Is the Lender Licensed?
Check whether the lender is state-licensed. The most credible licence you should be looking for on the lender’s website is FCA authorisation. These licences protect your rights as a consumer and prevent a borrower from falling for a scam or incurring illegal high-interest rates.
Why Apply Through a Reputable Broker?
An online broker such as FastPaydayLoans is a convenient way to apply for a no check loan without worrying about applying with a second-grade lender or one that has unreasonably high APR and interest charges. This way, you can easily compare offers and select a suitable lender.
| Why Trust FastPaydayLoans? | ||
|---|---|---|
| How much can I take out? | £100-£5000 | No obligation quotes |
| Representative APR | 49.7%(variable) | Competitive rates |
| Will bad credit be accepted? | Yes | Lenient requirements |
| What are the repayment periods? | 1-36 months | Flexible loan term options |
| How can I apply? | Apply online | 24/7 available |
Who is Eligible For No Credit Check Loans?
No credit check loans are specially designed for people with bad credit ratings, making it easy for anyone to borrow money. There are only basic criteria with a few factors that assess an individual’s eligibility to apply for this loan.
Legal Age
You need to be above 18 years old to qualify for a loan application. Proof of legal age is required with a government-issued ID card, passport, or driver’s license.
Valid Contact Information
You need to provide valid contact details where the lender can contact you in case of any inquiry or update.
UK Citizenship
You need to be a permanent resident in the UK to apply for a loan through an online lender. Proof of UK citizenship will include formal documents like utility bills under your name.
Valid Bank Details
You need a UK-based bank account for the lender to deposit the money in and deduct the repayments from.
Proof of Stable Income
You need to show a sustainable source of income that allows the lender to judge your repayment capability. This can be as payslips, previous bank statements, certificates of earnings, etc.
How to Apply for a No Credit Check Loan with FastPaydayLoans UK?
It’s never been easier to apply for a payday loan with little credit check with lenders we recommend. Here’s a step-by-step guide that you can follow to apply for a loan the next time you’re in financial trouble:
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Step 1. Fill Out the Form
The online application process is as simple and easy as possible. Visit the website and fill in the details. The application form will ask for the amount you need to borrow along with personal information, contact information, and banking details.
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Step 2. Select Your Lender
We’ll forward your application to our network of lenders, who will then, upon eligibility fulfilment, send an offer within minutes. Compare the offers and select a lender whose rates and terms and conditions fit your needs. Finally, e-sign the documents.
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Step 3: Get the Money
Your selected lender will deposit the money to your bank account within less than a day. In most cases, you don’t even have to wait for hours; a simple case will receive the loan in 15 minutes!
How much would you like?
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).
Frequently Asked Questions
Which loan is right for you?
The ‘right type of loan’ depends on your requirements. You can choose between various loan types when trouble hits your finances, including instant payday loans, personal loans, credit union loans, etc. Compare the loan amount, repayment period, and interest rates before deciding.
What is the difference between a soft and hard credit check?
A hard credit check involves a detailed review of your credit dealings. Additionally, it impacts your credit history, drops your credit score, and stays in your credit record for at least a year. Alternatively, a soft credit check is an overview of your credit history and doesn’t negatively affect your score.
How much can I borrow?
With a no credit check loan, you can borrow anywhere between £100 to £5000. Another factor you need to consider is to evaluate your repayment capability against the repayment period using your net salary. Generally, you should not get a loan amount of 45% beyond your monthly income.
How soon will I receive my money?
Borrowing money from a no credit check loan can take a day. Depending upon how long it takes the lender to evaluate your application and repayment ability, it can even take less than 15 minutes after approval in most cases.
What's the acceptance rate of no credit check loans?
The acceptance rate of bad credit loans and no credit check loans is higher than personal loans. Because lenders only perform soft credit checks and weigh in other factors, loan request rejection is usually low for these loans, which is why 97% of cases get approved.