Whenever you apply for a loan, either online or offline, a few things happen.
First, you’ll need to fill out some forms, or engage in a conversation with a financial professional where you explain what you need to borrow, and how long you need to borrow money for. Next, the company or bank that you’re applying for your loan with will perform something called a “credit check.”
For people who have had a complicated history with their finances, credit checks can be where things start to go wrong. All you need is one mistake to ruin your entire credit history, and send your lenders running in the opposite direction.
If you’re trying to apply for a payday loan so that you can borrow money for an emergency, you might want to avoid a credit check at all costs. After all, if the bank sees your credit history, or notices that you’ve failed to pay loans back on time in the past, then they might reject your application.
However, getting the money you need doesn’t have to mean searching for loans for poor credit. Sometimes, all you need to do is find a provider who looks beyond your credit score.
There a handful of credit agencies in the UK that watch your behaviour with money like hawks. These companies will track everything you do with your credit cards and loans. They then make a document with all that information, that your potential lenders can look at when they’re deciding whether or not to give you a loan.
When you’re careful with your money, pay back your loans on time, and make sure that you’re never behind schedule with your repayments, your credit score will grow. It takes time, but eventually, you end up with a credit score that attracts banks and building societies and convinces them to give you the best possible deals on your loans.
Unfortunately, when something goes wrong with your finances, and you miss a payment, or default on your loan, this takes enormous chunks of points away from your credit rating, leaving you with a sub-par score. The worse your credit score is, the less likely you are to get the money you need. Not only will you have to deal with poor interest rates and extra fees, but people with bad credit can also be rejected from their loans completely.
However, the truth is that even people without a perfect credit history need to borrow money sometimes. That’s why people start searching for “Payday lenders no credit check”, when what they actually need is a loan from a bad credit payday loan provider.
If you’ve ever searched for payday lenders that don’t perform credit checks before, then you might have had a hard time finding someone who will offer you the money that you want without looking into your credit history. There’s a good reason for this.
First of all, performing a credit check is how a lender determines the level of risk that they’re taking on when they agree to give you a loan. The more of a risk you pose, the higher the interest rates on your loan might be so that your lender can protect themselves.
Additionally, credit checks are also there to protect you. The Financial Conduct Authority – the organisation responsible for making sure that all loan providers act ethically in the UK, demands that all companies offering loans must always conduct a credit check before giving a cash advance. They do this so that the lender is aware if you’re in a dangerous financial situation.
If a lender sees that you’re jumping from one loan to the next and defaulting on the money that you borrow, they can give you an insight into where you can get help with your debt issues, rather than just making your problem worse.
At first glance, a payday loan without any credit check to worry about might sound like a dream come true. You can hide your awkward history from the lenders that might use it against you and access the crucial money that you need. However, if you did find a provider that gave you payday loans without a credit check, that would mean that the business in question wasn’t compliant with FCA regulations.
Not only does this put you at risk of a poor quality of service, but it means that you’re dealing with an unethical loan provider. The company in question might also ignore other rules put in place like the FCA – like the caps on interest fees and other expenses.
While you might not be able to find a payday lender that gives you money without a credit check, this doesn’t mean that you won’t get the short-term loan that you need. Instead, it just means that you need to look for a provider who can consider more than just your credit history when deciding whether you should be given a loan.
Instead of making a decision the second that they see your credit score, lenders that offer payday loans for people with bad credit consider your affordability levels by examining your monthly salary and regular income. They check how much you earn each month, and how much money you have to pay out on other responsibilities. After that, they can decide whether they can offer you the cash advance that’s right for you.
Just like a typical payday lender, a lender that offers loans for people with bad credit can give you a wide range of choices when it comes to finding the ideal cash advance. You won’t have to worry about your problematic financial history holding you back.
If you do have a less than perfect credit history and you want to get your hands on a payday loan for emergency expenses, there are various things that you can do to improve your chances of being accepted. While there’s always the option to take steps to improve your credit rating over time, the first thing to do when you want cash right now is look for lenders that specialise in people with poor credit histories.
Bad credit payday loan providers are specialists that provide loans specifically to people who might not be accepted for traditional cash advance options. These businesses will still perform credit checks to make sure that you aren’t in a dangerous financial situation before they give you the money that you ask for. However, they make sure that it’s much easier to be approved for the cash that you need.
Most of the time, when you apply for a loan with a bad credit provider, all you need to do is prove that you have enough regular income each month to pay back what you owe. You’ll also need to meet with the typical eligibility requirements for most payday loans. For instance, you will have to be over the age of 18, and you’ll need to be a resident of the UK with a UK bank account.
To improve your chances of being approved first-time around, stick with bad credit lenders if you know that your score isn’t excellent. After all, the more you apply for a loan with traditional lenders and get rejected, the more black marks you’ll have on your credit history over time.
Checking the eligibility requirements that a payday lender uses before you make your application will ensure that you’re not wasting time with requests that simply won’t be approved. In most payday loan situations, time is of the essence. You can’t afford to deal with countless rejections before you find someone who’s willing to accept you as a lender.
Unfortunately, bad credit ratings are a common concern for people across the UK today. Although it takes a lot of time and focus to build a good credit score, the truth is that it often takes nothing but a few simple mistakes to destroy your rating. Within no time at all, you can end up in a very difficult position, struggling to find the cash advance options that you need.
When a poor credit history can ruin your chances of getting cash for an emergency, it’s no wonder that so many people find themselves searching for lenders with no credit checks processes. However, the truth is that even if you found someone who was willing to lend to you without a credit check, you would be putting yourself and your future in danger.
It’s always a much better idea to choose a provider that’s FCA regulated and approved instead. Rather than looking for someone who doesn’t perform a credit check at all, spend your time comparing the options available to you from specialist bad credit payday lenders instead.