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No Credit Check Payday Loans - No Need For A Great Credit Record!
Looking for a no credit check payday loan? Well unfortunately there is no such thing, but apply through us and all types of credit history are considered.
What Is A No Credit Check Payday Loan?
When you take out all types of credit (including conventional payday loans), the lender involved will perform a credit check on you. This involves them contacting one or more of the UK’s credit reference agencies such as Equifax and Experian where they will be given details of how you have handled credit in the past. As past history of how you have handled credit is seen as a good indicator of how you will handle it in the future, it means if you have missed payments in the past or had issues such as Individual Voluntary Agreements or County Court Judgements you may not be accepted for a loan.
In the UK there is no such thing as a no credit check loan, all regulated lenders have to perform credit and affordability checks as part of their madate for responsible lending. But let's talk about theoretically if there were, the lender in question would not carry out any form of credit history check but instead asks for other details to help them come to a decision. Information they may require includes:
- ● Name - The name on your application must be your proper name.
- ● Address details - Your address details are needed to comply with the UK’s fraud and anti-money laundering regulations. To ensure that your application is handled as smoothly as possible, your current address details should match the address details on your bank account.
- ● Monthly salary - As payday loans without a credit check would not be assessed on your credit history but on affordability, they would need to make sure you can afford to make the repayments of the loan without difficulty.
- ● Employment history - Your employment history is needed not to contact your employer (that will never happen) but is needed to prove that you have a regular and steady source of income.
Whilst other lenders look at how you have handled credit in the past, no credit check loan providers could instead look at whether you can afford to pay the loan back. This would make them a great option for people who need credit and can afford to pay it back but their past history stops them from being accepted for loans.
If they did exist, the common features of no credit check payday loans would be:
- ● No search of your credit file - No footprint would be left on your credit file whatsoever, so applying for a no credit check payday loan would not harm your chances of getting credit in the future elsewhere.
- ● Small loan amounts - The amounts you can borrow with these types of loan are typically small although some lenders may be prepared to lend up to £5000 in certain circumstances.
- ● Short-term loan length - Because these types of loan would be riskier for the lender, the length of time you are given to repay such a loan would be relatively short to minimise the risk as far as possible for the lender.
- ● Interest rates - Interest rates on these types of loan would be generally more than mainstream loans in view of the greater amount of risk involved for the loan provider. Used wisely however, these loans could be useful to build a better credit history and access cheaper forms of credit in the future.
Why Might You Want A Payday Loan Without A Credit Check?
There are number of reasons why people look to apply for a no credit check payday loan.
Poor Credit History
You may be aware that you have had significant credit problems in the past and are certain that any lender (even non-prime payday lenders) will not choose to lend you money. This may be because you have had past issues such as:
- ● Bankruptcy
- ● Been subject to an IVA (Individual Voluntary Agreement)
- ● One or more County Court Judgments against you
- ● Multiple Payment defaults
- ● Extensive credit searches by multiple lenders
- ● All current credit limits at their maximum
- ● Not being on the electoral roll
- ● Quick and easy application process - Online payday loans are very quick and easy to apply for and can be done in a matter of minutes thanks to the fact that the entire process is completed automatically online.
- ● Instant decision - Unlike a traditional loan where you may have to wait days or even weeks for a decision, we will have a decision for you within minutes.
- ● Quick cash transfers - Once your loan has been approved, the money will be transferred into your bank account straight away, meaning you can access it in as little as fifteen minutes.
- ● Variable loan amounts - You can ask to borrow between £100 and £5000.
- ● Variable repayment lengths - You can choose to spread the cost of your repayment over a range of time periods up to three months
Credit History Privacy
When you apply for regular payday loans, a search is done on your credit file to see if your credit history is worthy of being considered for a loan. For some people, they may feel that such searches are invasive and are an intrusion of privacy.
Credit Status Improvements
Some people would like to take out a no credit check payday loan because they are unable to access normal credit and use these types of loans to build up their credit history. This is done by complying with the loan and its conditions in full by making regular repayments on-time and repaying the loan in full.
But when all is said and done measures such as credit checks are put in place to protect you, the consumer. It's all too easy to fall into a cycle of debt, having credit checks and ensuring lenders stick to responsible lending practices goes some way to making sure that consumers don't borrow more than they can afford to pay back.
Benefits Of Applying For A Loan Through Us
Payday loans may not be suitable for everyone but if you are struggling to get credit they can be a very good option as lenders can be a little more forgiving about bad credit histories. Fully comply with the terms of these loans and repay them in full, and they can be a useful tool to build a better credit history and access more mainstream forms of credit in the future.
Frequently Asked Questions
Can i get a payday loan with no credit check?
It may sound like an attractive proposition, a 'no credit check loan', especially for those with a poor credit record or maybe even no credit record at all. But in the UK all regulated lenders must undertake credit and affordability checks before being able to offer a loan.
However, having a bad credit score or no credit history whatsoever doesn't mean you won't be able to get a loan, some of the lenders we work with specialise in helping bad credit customers, rather than relying on your credit report they can put far more emphasis on your current financial situation and your ability to repay on time. Apply through us and you may just be surprised.
Why should i use Cobra Payday Loans if i want to apply for a loan?
As an authorised credit broker we are in an excellent position to help you find the finance you need. We work with over 50 lenders, many of which will accept applications from people with a bad credit history, far more importantly they are more interested in whether you can afford to repay the loan and don't base their decision solely on your credit past.
Submit our simple application form and we will search the market to find a loan for you.
Why do people search for no credit check loans?
More often than not the main reason people search for this type of loan is because of problems obtaining finance. That may be because they either have no credit history or have had trouble in the past and are now classed as having a bad credit record.
But all may not be lost, having a bad credit record doesn't have to be the be all and end all. We have helped thousands of people find the credit they need. Some of the lenders we work with will consider applications from all types of credit background. So give us a try today and find out if we can help you too.
How can my credit score be improved?
A lot of people in the UK suffer with a bad credit record and as such are unable to get very good deals on credit and finance, if any at all. As a first step you should check your credit record with the big 3 credit reference agencies, Equifax, Experian and Call Credit. Check for any incorrect information that they may hold and recitify with them as necessary.
Unfortunately if a poor credit score is because of historic financial mistakes then there is no quick fix, first and foremost it's important to get on top of your current credit commitments and pay them in a timely fashion. Over time your score will gradually improve.