Do No Credit Check Loans Exist?
A loan given by an FCA registered company in the UK is under certain obligations when it comes to providing money. This is true whether it is a personal loan or a business loan, secured or unsecured. Many companies offering loan broker services will often advertise ‘no credit check loan’ terms in an attempt to lure customers to their services, but in short, a no credit check loan does not exist.
Before lending any amount of money, a lender has to by requirement conduct a credit check on the applicant to see whether they are financially responsible and can pay back a loan without it causing them financial hardship. However, there are different methods of how they can go about this which may not impact your credit score as much.
What are Hard Credit Checks?
Every time you apply for a loan from a certain lender, not the actual loan broker’s online form, they will perform a check on you and your financial history. A hard check is usually required for larger sums of money being loaned. Your potential creditor will contact a credit reference agency and request to view your details.
Whenever they do this, it is marked on your file and any other creditors you want to loan money from can see it too. Even other kinds of financial connection such as joint banking can be seen. If lots of these hard credit checks are done on your file in the space of a few months, it can have a detrimental impact on your credit history.
What Are Soft Credit Checks?
Unlike hard credit checks, a soft credit check does not negatively impact your credit history, and you can have multiple soft credit checks done by a lender without worrying about if your creditworthiness is being damaged each time.
The borrower simply seeks to get an overview from the customer of their fiscal history. They don’t access your main file, and instead they will take a whole host of information from you, like your date of birth,UK address history and full name to search the internet for anything that might show them you are a trustworthy person to lend to.
A soft credit check involves looking at the electoral roll, bankruptcies which are made public, any kind of finance related legal judgements, some types of debt relief order and IVAs. They can also see whether you have had to use an organization to consolidate existing debts, andget a general sense of you when it comes to handling your finances well.
What Kind Of Loans Can I Get If I Have Bad Credit?
Just because you may have a less than favourable credit history doesn’t automatically rule you out from being considered for a loan. You might be in a different situation now to when you have previously applied for loans, or defaulted on repayments, or had your car repossessed. Two of the most common loans for people with bad credit are guarantor loans and secured loans. A guarantor loan basically means that a family member signs to say they will repay the debt if you are unable to.
This gives the loan company additional security that they will receive their money back. A secured loan uses a physical object as collateral. If you don’t maintain a repayment schedule, then the lender may be able to take possession of your car or home and sell it to cover what you owe them. This kind of loan should always be thought through carefully before you sign a contract with a lender.
Other Loans
Homeowner Loans
Generally, there are two types of homeowner loans – secured and unsecured. A secured homeowner loan is tied to your property and an unsecured homeowner loan is a type of debt that doesn’t involve any
Debt Consolidation Loans
A debt consolidation loan is a personal loan that helps you to merge all your existing debts into one. That means instead of paying for several debts, you will need to make only one repayment.
Wedding Loans
Weddings are the happiest and most important moments in any couple’s lives. Understandably, you want to make it an unforgettable event. The reality is, however, UK weddings are expensive and come with many unexpected costs.
FAQs
Having a guarantor is a good idea if they have a good credit history because they agree to pay the funds back if you fail to make repayments. However, if you don’t want to use a guarantor or can’t find anybody willing to be one, then you can have a hard credit check completed instead, or put an item of value up for collateral on a secured loan.
Find a no credit check Loan – With Loan Broker
Loan Broker is an FCA registered credit broker that operates across the major cities of the UK. All the lenders associated with it are also authorised by the financial regulator. The mission is to promote responsible lending and hence, our lenders perform soft credit checks to offer initial quotes. Soft credit checks are safe as they do not leave any footprint on your credit report and doesn’t even harm your credit report.
We do not charge any upfront fees to our consumers. We offer an array of unsecured loans such as – debt consolidation loans, self-employed loans, to help borrowers get back on their financial track. As a credit broker, we help our borrowers to find the right lender by considering their requirements. With Loan Broker by your side, you can choose no obligation loans. We are loan brokers, committed to extending a true hand of help for borrowers seeking hassle-free, and affordable loans despite bad credit rating.
Borrow responsibly and repay timely.