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No Credit Check Payday Loans - No Need For A Great Credit Record!
Looking for a no credit check payday loan? Check out our complete guide below that will give you all of the information you need to ensure that you get the payday loan without a credit check that is right for you.
What Is A No Credit Check Payday Loan?
When you take out most forms of loan (including conventional payday loans), the lender involved will take out 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, but let's talk about theoretically if there where, 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 are not assessed on your credit history buit on affordability, it is essential that you can prove 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 would instead look at whether you can afford to pay the loan back. This makes 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.
In short, the common features of no credit check payday loans are:
- ● No search of your credit file - No footprint is left on your credit file whatsoever, so applying for a no credit check payday loan will 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 £2000 in certain circumstances.
- ● Short-term loan length - Because these types of loan are riskier for the lender, the length of time you are given to repay such a loan is relatively short to minimise the risk as far as possible for the lender.
- ● Interest rates - Interest rates on these types of loan are generally more than mainstream loans in view of the greater amount of risk involved for the loan provider. Used wisely however, these loans can 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 you may prefer 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 no credit check payday loans are very quick and easy to apply for and can be done in a matter of minutes thanks to the fact that there is no credit check involved.
- ● Instant decision - Unlike a traditional loan where you may have to wait days or even weeks for a decision, loans that don’t have a credit check 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 £50 and £2000.
- ● Variable repayment lengths - You can choose to spread the cost of your repayment over a range of time periods up to three months
- ● No credit check - When applying for a no credit check payday loan, no search of your credit file is made and no footprint is left.
Credit History Privacy
When you apply for regular or most 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 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.
Benefits Of Loans Without A Credit Check
Payday loans without credit checks may not be suitable for everyone but if you are struggling to get credit they can be a very good option. 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.
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