If you urgently need additional cash to meet an unexpected bill, such as for car repairs, you may be worried about your chances of getting a loan if your credit history is less than perfect. You may have even Googled “no credit check loans” to see if there’s a way around it.
There isn’t, but that’s not a bad thing – it’s there to protect consumers like you. So, what do you need to know about no credit check loans and, if you’re offered one, are they really safe?
What is a no credit check loan?
A no credit check loan is a type of loan where the lender does not request a credit report on you before making their decision about whether to lend to you or not.
Are there no credit check loan providers in the UK?
There are no legal no credit check loan providers in the UK and that’s for a good reason – it’s against the law.
All lenders must be licenced by the Financial Conduct Authority and one of the conditions of getting a licence is that, prior to lending money to anyone, a lender must do two things:
a) Ask you a series of questions about your current financial situation to see whether a loan is affordable to you or not
b) Request your credit history from a credit reference agency to give them a better idea about how you handle money in general and how much debt you currently have
What if someone offers me a loan with no credit check? Is it safe?
If you get an offer of a loan from a company who say they’re registered with the Financial Conduct Authority, please do a thorough search for them on the Financial Services Register.
If they are on there and still offer you a no credit check loan, they’re acting illegally and you should report them to the Financial Conduct Authority.
If you can’t find them on the Financial Services Register, speak to the complaints team at the Financial Service.
Why is a credit check important?
Your credit report is a summary of how well you keep your finances. On your report, the following will be included:
• Any loans, mortgages, or credit card accounts you’ve had in the last six years (whether current or ongoing)
• Your overdraft and credit card limits and how close you are to them
• Whether you’ve missed any payments on your finance products and on certain other types of the bill (like Sky, your utility bills, and so on)
• Any County Court Judgements or bankruptcy proceedings against you
• Any time that you may have fallen victim to fraud
• Information on your electoral roll registration
All of the information is the turned into a “credit score”. If you fall below a lender’s minimum credit score limit, the strong likelihood is that you’ll be turned down for a loan.
Should I accept a loan if the lender is saying that there’s no credit check?
Please don’t. It is highly likely that the person or company offering you that loan may be a loan shark.
Does Loan Princess carry out credit checks?
Yes. We’re a Financial Conduct Authority-licenced lender and we’re required by law to do it. Even if we weren’t required by law, we would still do one anyway because we believe in responsible lending. It’s never responsible to lend someone money that they can’t afford to pay back – considering your credit score is an important part of this process.
Does Loan Princess deal with any lenders who offer loans with no credit checks?
No – never. We care about our customers and we would never submit your details to a loan provider which did not perform credit checks.
Apply for a safe payday loan or safe short-term loan through Loan Princess
Worried that, because you have bad credit and you need to take out a loan,you’re going to spend hours applying to lots of different lenders with no success? We’re Loan Princess, a Financial Conduct Authority-licenced loan broker. Our job is to be there to help you find the cheapest lender with the best terms to help you cope financially with an emergency situation or an unexpected bill.
We work as quick and simply as possible. Just fill in our user-friendly loan application form online. Once you’ve done that, we then send your details to our FCA-licenced panel of the leading and most ethical bad credit loan companies.
We don’t need to know that much – just enough to give us and a lender a real indication of whether or not you can afford the repayments on the loan you want to take out. Put just 2-3 minutes aside and let us know how much you want to borrow, how long you’d like to pay it back, who your employer is, how much you earn, what you spend every month, and your address history for the last three years.
With the information you provide us, the ultra-fast Loan Princess computer then pairs you with the lenders we know are most likely to accept you for credit. As part of the process, we carry out just one credit check – even if we find a dozen lenders we think want to work with you. That’s much better than making a dozen separate applications to a dozen different lenders since these credit searches will not show up on your file individually.
Within seconds, you’ll see all the offers we’ve agreed with potential lenders. If you like the look of a particular loan after checking that you’ll be able to make the repayments on time and within budget, read the terms and conditions. If you’re happy with them, click “Accept” and, depending on your bank, the money should be in your account within the hour.
Remember, there’s no fee or charge to pay with Loan Princess – even if you don’t accept a loan offer from one of our lenders. If you do, there’ll be a direct and new customer relationship created between you and your lender. You won’t pay any more for arranging your loan through Loan Princess than if you went direct to the lender.
To start your application, please click here.