Life is full of surprises, but not all of them are good.
A surprise birthday party, finding some extra cash in an old jacket, or a romantic gesture from a loved one are all examples of great surprises. Discovering that you need to pay for a bill when there’s no money left in your bank account doesn’t fall into that category.
If you don’t have a friend or family member who can help you out with a few extra pounds, your only option may be to turn to a loan so that you can pay critical expenses on time. Unfortunately, if you don’t have the best credit rating, that could be easier said than done.
Even if you’re working on improving your financial standing today, a poor credit history could convince a traditional lender not to give you the money that you need.
It’s no wonder customers start searching for online loans that come with no credit check to worry about.
However, “no credit check” loans might not be as simple as you think.
Whenever you apply for a loan, either online or offline, the company that you apply for will need to check your financial history. They do this by looking at something called your “credit report.”
In the UK, a group of three credit agencies collect information about how you use and borrow money for this credit report over time. You don’t need to have taken out numerous loans to have a credit report. You’d be surprised how many things can leave a mark on your history.
By looking at how well you paid back other forms of credit, like card bills and instant loans in the past, future lenders can decide whether you’re a good investment or not with a new loan. If you’ve got a good credit score, you should be able to get better interest rates, longer terms, and even the option to borrow more money. On the other hand, if your credit rating isn’t perfect, then your lender might want to avoid giving you the money you need altogether.
Your credit rating has an impact on your life in many different places. It’s not just there when you’re looking to get a quick cash advance. Your credit report also dictates whether you’re approved to rent a home, and it can even show up when you’re applying for a job too.
So, what do you do if you know you don’t have a great credit rating, but you need to borrow money for an emergency? Online loans with no credit check may seem like the only option. After all, if you could only hide your history from your credit provider, you might be able to convince them that you’re a good risk based on your current behaviour.
Unfortunately, lending opportunities in the UK don’t quite work that way. Even if you do manage to find a loan provider that offers money without a credit check, working with them could put you and your future at risk.
The Financial Conduct Authority, or FCA, requires all loan providers to conduct credit checks when they’re processing a loan. This means that anyone who doesn’t conduct a credit check isn’t working within the rules and regulations of the FCA. That puts you at risk of falling victim to unscrupulous behaviour. Fortunately, just because you can’t get a loan with no credit check safely, doesn’t mean that you won’t be able to get the cash advance that you need.
Instead of wasting time looking for unsafe lenders, it’s best to focus your efforts on finding an instant bad credit lender instead. This means finding a company that doesn’t just look at your credit score when deciding whether to give you money.
A bad credit lender will take your credit situation into account, along with other things like your income, expenditure, and employment history. This gives you a higher chance of being approved for your loan, and a reduced risk of unnecessary marks on your credit history.
If you’re looking for an online loan and you don’t have the best credit, you’re going to need a strategy.
First and foremost, look for companies that can give you an insight into your chances of approval for a loan, without leaving a mark on your credit history. Some companies may be able to conduct a “soft check” on your credit report before taking your request to the next stage. This gives them a basic overview of your information, without telling anyone else that they’ve been browsing through your files.
Secondly, avoid applying for loans that are obviously reserved for people with good credit ratings. You’re probably not going to get the top of the line deals from a loan provider if your credit isn’t perfect.
When you do apply with a instant loan provider, it’s also helpful to do a little research and make sure you’re doing everything you can to improve your chances of success. For instance, most applicants for online loans must:
Different companies have unique eligibility requirements in place. Check what the best organisations ask for before you begin your application.
If you’re concerned that your only way forward in the future will be to look for dangerous online loans with no credit check, you can always start taking steps to improve your credit rating. Although this process might not help you for your immediate online loan, it should improve your chances of success in the long term.
A few things you can do to improve your credit rating include:
Whether it’s a payday loan advance or a personal loan, no lender in the UK should ever offer you a cash advance without a credit check. Failing to examine your financial history before giving you your money would put a lender in breach of financial regulation rules. There’s a good reason that these guidelines are in place – and it’s worth remembering that they’re there to protect you.
If your loan provider ignores the rule of performing a credit check, they may also ignore other requirements that are crucial to your safety. For instance, the FCA also regulates the amount of interest a lender can charge, the number of times a loan can be rolled over, and more.
Many UK consumers think of the strict regulatory environment of online loans today to be a problem – particularly if they have a bad credit rating. However, the truth is that the guidance of the FCA is there to keep you and your money safe. Without it, the world would be full of unscrupulous lenders.
Fortunately, whether you have a bad credit history or not, there are online lending opportunities out there for everyone. Successfully getting the money you need doesn’t have to mean avoiding credit checks or working with dangerous lenders.
All you need to do is find a provider who is willing to consider your current situation, as well as your past. Dealing with a bad credit provider of online loans is an excellent way to boost your chances of a successful application, without taking unnecessary risks. When you’re looking for the right company to give you your online loan, make sure that you search for someone that approves people with bad credit too.
You should be able to find details of a lender’s approach to bad credit lending when conducting your loan comparisons.