If you suffer from a bad credit history, then you might be wondering what your options are when it comes to taking out loans. Whenever you apply for a cash advance, whether it’s a credit card or a loan, your provider will check your repayment history and experiences with money by performing a credit check.
A credit check offers providers an overview of everything you’ve done with your credit over the last few years. If you’ve ever had a bankruptcy, or problems with paying back the money you owe from other providers on time, then lenders will be able to see this from the moment that they check your credit report.
Fortunately, since a lot of UK consumers do struggle with bad credit today, special providers have emerged that can offer loans regardless of what your credit might look like. However, the important thing to remember is that just because bad credit loan providers give you more leeway than a standard provider, doesn’t mean that they ignore credit checks entirely.
If you’re searching specifically for a bad credit loan, there’s a good chance you don’t have a great credit history. When you have a history of paying companies late or struggling with missed repayments, you don’t want your future loan providers to see that. It’s common to search for a no credit check solution so you can avoid the headache of being rejected when you need cash fast.
However, all bad credit loan providers are held to the same standards as any other lender when it comes to giving out cash advances. No matter what kind of short-term loan these companies provider, they will be required to conduct credit checks according to the rules of the Financial Conduct Authority.
Simply put, no credit check loans don’t exist in the UK – at least not with approved and regulated lenders. If you find a short term loan provider who claims that they can guarantee you a loan without any credit check, you should run in the opposite direction.
In any part of the financial world, the best interest rates are always available to the people with the best credit ratings. However, that doesn’t necessarily mean that you don’t have any options if your credit isn’t up to scratch. You might need to work with a specialist and manage a few extra restrictions than you would have with good credit. However, a bad credit provider could be the answer to the cash issues you’re trying to solve.
A bad credit loan provider doesn’t ignore your credit history when they’re deciding whether to give you a loan or not. Instead, they take other things into account alongside your credit history. For instance, they might see that you had a problem with repayments a few years ago. However, since then, your affordability check might reveal that you have a better income and plenty of money that you can use after paying for other expenses to make your loan repayments.
To help reduce your chances of marks on your record from loan providers who are just going to reject your application, bad credit lenders can also perform soft credit match checks. These credit checks are different to the traditional research that companies do when they’re approving you for a loan. With a soft check, a company can see the basic information at the top of your credit report, without diving deep enough to leave a mark on your file.
Sometimes, a soft credit check can make it easier for a loan provider to tell you whether you’re likely to be approved for a loan with them before you take the time to fill out an application. This means that some UK loan providers can reduce your risk of a wasting an application. However, if you decide to follow through on trying to get a loan with that credit company, they’ll still need to conduct a full credit check.
So if you can’t get a bad credit loan without a credit check, what’s the point of applying for credit with a specialist in the first place? The simple answer is that there’s more to a bad credit provider than you think. These dedicated lenders are devoted to helping people without the best credit history to get the money they need when they’re dealing with an emergency.
For example, bad credit loan providers:
Bad credit loan providers don’t treat people with poor credit with disdain. Unfortunately, a lot of banks and building societies can’t claim the same. Often, one of the biggest reasons that customers search for loans without a credit check is because they’re afraid of the judgement they’ll get from a traditional provider.
First of all, if you have bad credit and you’re worried that this might reduce your chances of being approved for a loan, the first thing you need to do is accept your situation. Don’t try and hide your history by looking for a malicious lender who promises no credit checks. These companies don’t have your best interests at heart, and they’re not approved by the financial conduct authority, which often makes them dangerous.
Once you accept your situation, you can begin comparing loan opportunities from companies who might have something positive to offer you and your future. Remember, just because you have a bad credit history doesn’t mean you can’t compare providers to make sure that you’re getting a good deal.
When you find a company that seems to be a good option for your needs, make sure that you check their eligibility requirements. This will help to improve your chances of being accepted for a loan. Most companies will share their eligibility details on their website, alongside a percentage rate of how many people get accepted for cash. Common eligibility demands include:
You may also need a valid telephone number and email address that you can share in case the loan company needs to get in touch with you for any reason.
In the past, payday and emergency cash loans were often considered dangerous because they didn’t have any regulation. However, the Financial Conduct Authority stepped in to protect consumers like you from people who would pray on the worries of people with bad credit and limited loan options. Now, the only people you need to be wary of are those that don’t follow the rules of the FCA.
This means that you should always avoid companies who promise that they can give you a cash advance without any credit check. Remember that all companies need to perform a credit check, even if they just check the basics of your history first, without leaving a mark on your file.
Another way to protect yourself from dangerous loans is to stay away from any business who promises a guaranteed loan without checking your details first.
Rather than taking your chances with unapproved lenders, make sure that you defend yourself and get access to the cash you need with the right bad credit loans from trustworthy providers. You can compare your options online to make sure that you’re applying for the loan with the lowest interest levels, limited fees, and all the additional support you might need.
Some bad credit loan providers can even give you advice on how to improve your credit rating in the future.