Short term loans no credit check
Whatever you read on a lender or brokers website about short term loans no credit check, it’s important to know that there is no such thing as a no credit check short term loan. All United Kingdom lenders are obligated to meet the responsible lending practices, which are set out by the Financial Conduct Authority (FCA). This means that they must perform a credit check before they approve you for a loan.
Many of the lenders are able to provide you with a quote for your short term loan no credit check using a soft credit search, which does not impact your credit score.
What is a soft and hard credit check?
Soft credit checks are a way for the lender to get an overview of your credit history without impacting your credit check. If you check your own credit history online, this is also a soft check.
A lender can use the soft check as a way to get information on your creditworthiness. It provides information including your name, address, birth date and public records. The soft check provides electoral role entries and legal judgements.
Hard credit checks, on the other hand, access the information above by contacting a Credit Reference Agency. The agency opens your credit file and obtains more information. When a hard credit check is carried out, it is logged on your file, making it visible to other lenders for twelve months.
Hard credit checks access account history, including bank account activity, repossessions and financial connections, such as opening a joint account or co-signing a credit agreement. If you have a number of hard credit checks over a short period, it will have a negative effect on your creditworthiness, which is why you should always limit how many hard credit checks are performed on your name.
Do short term loans no credit checks even exist?
If you have heard of someone who recently secured a short term loan without a credit check and that is what you were hoping for, you may feel disappointed that your credit history is still taken into consideration when applying to lenders for a short term loans no credit check.
Yes short term loans no credit check do exist, usually by loan sharks who violate the FCA regulations. When you deal with lenders of this nature, you have no protection against unchecked interest and unlimited fees. Your personal information can be violated. When choosing one of these loan shark lenders, you put yourself at risk, especially if you miss a payment. You can be exposed to harassment.
How to secure a short term loan no credit check
The majority of short term loan lenders offer their loans, even if you don’t have the best credit history. Yes they will still carry out a soft credit check, but they take other information into consideration, such as if you are a UK resident, if you are eighteen and older, if you have a UK bank account and if you are employed. Their focus is to ensure you can repay the loan in a timely manner.
As a result the short term loan lenders have high acceptance rates, offering fast payments and an efficient loan processing service. Short term loans no credit check are done online and can be completed within minutes, you usually get approval within a few minutes and the money is paid into your account the same day or the following day.
Remember you will have to undergo a credit check when dealing with a FCA responsible lender in the UK, whether you are applying for any loan or credit. The short term loan should not be used as a long term financial solution and you will want to ensure you are able to make the repayments on time, helping to improve your credit rating.