Is An Online Loan Without Credit Check Right For You?
Financial emergencies can happen to anyone.
One day, you could be enjoying your life as normal, confident in your budget and your ability to pay all of your bills with ease. The next day your washing machine could break down, your boiler could burst, or your car could suddenly start spouting fumes.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Life is unpredictable.
No matter how hard you work at protecting yourself and your family with a good financial plan, there’s always a chance that you could end up needing to borrow money to make ends meet. Unfortunately, if you don’t have the best credit rating, then you may find that getting a loan is easier said than done.
After all, no matter what kind of loan you apply for, there’s a good chance that the lender will conduct a credit check to determine how much of a risk you are. The worse your credit rating is, the bigger the perceived risk is for your lender. In some cases, a higher risk will mean that you pay more in interest, and other times, it will mean that you can’t get a loan at all.
It’s no wonder that people end up searching for online loans with no credit check.
What are Online Loans with No Credit Check?
These days, there are a lot of unique lending options available to people who need to borrow money fast. As well as conventional or traditional loans like personal cash advances and car finance, you can also consider things like payday loans or online loans. Payday or online loans are quick and easy-to-access lending opportunities. With an online loan, you can complete an application for the money you need, get approval and even get your funds into your bank account within less than 24 hours.
There’s no need to worry about making an appointment with a financial expert at a local bank when you need a short-term online loan. Additionally, when you work with a broker like Boutell, you can access a host of extra advantages including:
- No hidden fees: You know exactly what you need to pay up-front, so you’re not left with any extra expenses draining your bank account.
- Flexible loans: Most online and payday loans are highly flexible. Though you can’t borrow as much as you might be able to with a traditional loan, you can borrow for any reason, and you don’t have to explain yourself to the lender.
- Straightforward repayment terms: You borrow money from an online lender and pay it back often within a matter of weeks. This means that you don’t have to worry as much about fitting repayments into your schedule.
- High approval rates: Even if your credit history isn’t ideal, you can still get approval for an online loan, because the risk that the lender is taking is minimal.
- Easy application: Applying for an online loan is simple, and often only takes a matter of minutes. Usually, you can complete your application using your smartphone.
A lot of people assume that online loans without a credit check would allow them to get the money that they need without worrying about their credit history or the impact it will have on their lending options. However, the truth is that while online loans with all the benefits mentioned above do exist, online lending without a credit check is not available in the UK.
Credit Checks are Essential to UK Lending
Ultimately, whether you like it or not, you’re going to need to have a credit check if you want to borrow money. The Financial Conduct Authority – the group in the UK responsible for regulating loan providers and lenders, demand that every credible loan provider conduct a check to ensure that the people borrowing from them can actually afford their loan.
If your loan provider doesn’t conduct a credit check, then they’re not only taking on a greater risk themselves, they’re also putting you and your finances in danger too.
Responsible lenders will always conduct a check, which often involves looking at the basics of your credit history. That makes it confusing when you see people online claiming to offer an online loan in the UK without a credit check. However, more often than not, these lenders are letting you know that you can get a loan without going through a hard credit pull first.
Basically, there’s a difference between someone checking your history with a soft credit check, and diving into your entire spending background. To fully complete your £1000 loan application, your lender will need to conduct a hard credit pull. However, before you commit to a lender, you can make sure that you’re going to be approved for your loan by allowing the company to conduct a soft credit check.
With a soft credit check, brokers like Boutell can help you to find the right lender for your needs, without leaving any marks on your credit score.
What do Online Loan Providers Look For?
All online loan providers have their own terms and conditions in place. This means that the kind of information that your lender looks at might differ from one loan to another. Usually, when a lender conducts a soft credit check to see whether you’re eligible for a loan, they’ll look into your history to find out whether you’ve ever been the victim of bankruptcy, or if you’ve ever defaulted on your loans.
Most online and payday lenders will also examine things like:
- Your identity and address: Loan providers need to make sure that you’re at least 18 years old so you can take out a loan. They’ll also need to check that you’re living in the UK, and that you’re a resident of the country.
- Your monthly income: Your lender will need to be sure that you can afford the repayment terms for your loan. Even if you’re only borrowing a small amount of money, a regular income each month will help you to successfully receive your loan.
- Employment history: Steady employment is often crucial to getting a payday loan. Your loan provider will check that you’ve been in your job for at least a few months before giving you any extra money.
When a lender claims to offer a no credit check loan, what they mean is that they’ll take the basic information above from a soft assessment of your history. From there, they’ll be able to tell you or your broker whether you have a good chance of being accepted for a loan.
Since one of the bet things you can do to protect and improve your credit history is make sure that you don’t apply officially for too many loans at once, a soft credit check can ensure that you don’t get any dangerous marks on your credit report that damage your future lending opportunities. One way to think of soft credit searches is a kind of pre-approval process, intended to ensure that your credit rating doesn’t suffer any more than necessary during the loan application process.
What Kind of Loan Do You Need?
Online loans that allow lenders to perform a basic soft credit check before a hard credit pull can be an excellent tool for people who need to borrow money quickly. When you don’t have time to mess around with traditional lenders, these online loans give you quick and easy access to money. In some cases, you can even borrow a couple of thousand pounds without having to jump through any hoops.
While online loans don’t give you the same long-term payment options as other conventional loans, they do make it easy to get back on track after you need to buy something quickly in your life. With an online loan, you can borrow money instantly, repay it within a couple of weeks, and get back to moving on with your life with as little hassle as possible.
All the while, successfully paying off your short-term loan proves to the credit bureaus that no matter what your history with money might look like you can be trusted. Some people see a boost in their credit score after they use online and payday lending to borrow emergency funds.
Borrowing with your Online Loan
While no reputable lender can safely offer anyone money without a credit check, you can rest assured that the credit checks conducted for your urgent loan don’t have to make your life more difficult. With a payday loan and a broker like Boutell, you can find a lender that’s ready to approve your loan no matter what your history might be like.
An online loan will give you the money you need as quickly as possible – often within 24 hours or less. What’s more, you can get started with an application online whenever you choose. The quicker you start filling out your Broker application, the quicker Boutell can work on finding you a lender that’s suited to your needs, without damaging your credit rating in the process.
Credit scores will always play a big role in lending, but you may discover that getting money with a bad credit rating isn’t as hard as it used to be.