Sometimes, we all need a little more cash than we planned for.
Even if you follow a careful budget throughout each month, there’s always a chance that something unexpected might happen and throw you off your game.
However, just because you need a bit of extra money, doesn’t mean you want to request thousands of pounds in credit from a bank or building society. That’s where small loans come in to give you an alternative option.
If you’re only looking for a way to borrow a small amount of cash for a limited time, then small loans can be a great opportunity. They let you borrow a small amount of money, usually under £500. However, some small loans can be available for a few thousand pounds too.
So, what if you want to access a small loan, but you don’t have a great credit history?
Then you might start searching for small loans with no credit check.
First things first, a small loan is a short-term loan that’s designed to provide you with a small amount of cash quickly. Otherwise known as payday or online loans, these cash advances can give you the money you need to pay for an unexpected cost within a matter of hours.
Usually, with small loans, you’ll be expected to pay the cash that you borrow back as quickly as possible. Some providers will ask you to set up a direct payment that goes out of your bank account the next time you expect to receive your income from your job. This will mean that you get out of debt rapidly.
Other companies offering small loans will give you the option to break your payments down into instalments that are paid over a series of weeks or months. Although some people prefer this option as it gives them more freedom with their money, it also means that you pay more in interest in the long term.
A credit check is a process used by banks, credit companies, and other agencies to find out what kind of history you have with money. The UK credit authorities gather information about all of your credit purchases and payments to determine how much of a “risk” you might be to lenders. If you’ve ever defaulted on a loan, or you’ve failed to pay back the money you owe to a lender on time, then your credit report might not be perfect.
Unfortunately, the worse your credit report is, the more likely it is that you’ll be rejected the next time that you apply for a loan. After all, every provider – including those that only offer small loans – wants to know that the customers that they’re giving money to can be trusted.
Unfortunately, credit scores are rarely a fair assessment of who you are as a person. Even people who have never taken out a loan before can have a bad credit score, just because there’s nothing in their history to show lenders what they’re like when they’re spending money.
Small loans with no credit check would be a way for you to bypass the problem of explaining away your credit history to any lenders. If you could borrow money without a business checking your credit background, then you wouldn’t need to worry about being rejected for your next loan.
Unfortunately, small loans with no credit check aren’t an option.
When you know that you don’t have a good credit history, it can be tempting to try and hide that fact from any lenders that you want to work with. After all, if someone checks your credit history and decides to reject your loan, then you’ll not only be left without the cash you need, but you’ll also have another black mark on your credit report to ward off future lenders.
Unfortunately, in the UK, there’s no such thing as small loans with no credit check offered by reputable payday lenders. If you find a provider that claims they can give you the money that you want without checking your credit, be wary. The Financial Conduct Authority, or FCA, is responsible for regulating all of the lenders in the United Kingdom. This company requires all providers to conduct a credit check before they give any money to a customer.
The reason that the FCA wants lenders to check your credit history before approving your loan is that it’s trying to reduce the number of people who end up in dangerous cycles of debt. Checking your credit history will allow your small loans provider to get a better insight into your history with money. This means that when they give you the money that you ask for, they know they won’t be putting you into an unfair or dangerous situation.
Although it isn’t possible to get small loans with no credit check in the UK, that doesn’t mean that you can’t get the cash advance that you need. These days, plenty of consumers across the country struggle with their credit. Because of this, there are a host of small loan providers out there that offer lending opportunities specifically to people with damaged credit.
Otherwise known as bad credit lenders, these companies don’t ignore your credit rating when they’re deciding whether to give you a small loan. However, they do consider other factors besides your credit score. For instance, your bad credit small loan provider might ask you to complete an affordability assessment that looks at things like:
Aside from the additional affordability check, applying for small loans with bad credit is just as simple as asking for any other short-term loan product. Many of the providers available today will give you the option to apply online, so you can save yourself the time and effort of visiting a branch in-person. You should also be able to get approval for your loan within a matter of minutes or hours.
Importantly, you will need to prove that you’re over the age of 18 with a form of ID to apply for your small loans. You’ll also need to show that you’re a resident of the United Kingdom and that you have a valid UK bank account your funds can be paid into.
Small loans with no credit check are never a good idea, as they imply that you’re accessing a cash advance from someone who hasn’t been approved by the FCA. However, safe small loans can be an excellent solution for people who want to borrow a limited amount of money fast.
Because your loan provider is only giving you a small amount of money, the chances are that you won’t have to jump through as many hoops to have your application accepted. Many small loan providers will accept people with bad credit, although you may need to turn to a specialist if you have a particularly bad credit history.
Small loans are very easy to apply for, and usually, give you access to the money that you need much faster than traditional personal loans and other cash advances. If you’re dealing with an emergency and you can’t afford to waste any time, this form of credit might be the best option for you.
What’s more, you could find that taking out a small loan helps you to improve your credit score too. When you show the credit authorities how committed you are to paying back the money you owe according to the terms and conditions of your new loan; you’ll begin to earn extra points for your score. This process combined with other strategies to build your credit rating will help you to get your financial health back on track.
Bad credit is a serious problem for many people throughout the UK.
Although it takes years to develop an impressive credit score, something as simple as a few basic mistakes or missed payments can be all it takes to destroy your credibility with lenders around the country. It’s easy to see why people who need money quickly would think of looking for small loans with no credit check.
Unfortunately, even if you could find a provider that would be willing to give you your loan without checking your credit history, it would be dangerous to take money from that company. Borrowing from a business that isn’t FCA approved means that you won’t be protected if something goes wrong with your cash advance.
The good news is that just because safe small loans with no credit check aren’t available, doesn’t mean that you can’t get the money that you want.
Small loans from bad credit loan providers ensure that everyone can access the financial resources that they need – no matter what kind of history they have.