Understanding Small Loans No Credit Check
If you want to borrow money quickly, without the headache that comes with complicated applications, then you’ve probably searched for “easy loans” online. You might even have seen brokers and lenders advertising small loans with no credit check and asked yourself whether you could really get money without revealing your history to someone.
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).
The truth is that when lenders and brokers claim to offer no credit check, what they’re really saying is that you can check whether you’ll be approved for a loan by using a “soft credit check” before you need a hard credit pull. This basically reduces the risk on your credit rating, and it also boosts your chances of getting the money you need quickly.
If you ever see a company that claims to offer loans without any credit checks whatsoever, then you should go somewhere else. While a loan without a credit check might seem like a good idea at first, all regulated lenders in the UK must conduct checks to ensure that you can reasonably afford to take out your loan plus interest. Taking out a loan without this check could mean that you end up in serious financial trouble, and it may even mean that you’re working with an unregulated lender.
Here at Boutell, we work hard to get people the money that we need – but we ensure that all of the loans that we broker are safe. We don’t believe in getting people into difficult situations with lenders that aren’t approved. Here’s what you need to know about getting your small loan.
Who Are Small Loans with No Credit Checks for?
People often search for loans without a credit check when they have a poor credit history that may stop them from being approved for their loan. This kind of borrowing may also be more appealing if you’re dealing with an emergency expense and you know you need to get your cash quickly. However, a credit rating is something that will stick with you whenever you go for a loan.
Credit ratings offer an important assessment of a person’s credit risk. Your history will show lenders whether you can afford to repay your debt, and it’s important in determining whether you can qualify for a loan or mortgage.
The good news?
A poor credit rating doesn’t mean that you won’t get the loan you need – particularly if you’re applying for small loans with Boutell. Our lenders consider a number of factors beside your credit check to help you get the money you need. With our small loans, you can access just a small amount of cash for a short period of time. You don’t need a huge credit rating this way, because you’re not borrowing a lot of money, and you’ll be expected to pay your cash back within a month, or a short period of time.
Applying for small loans is usually a very simple process too. You’ll go to the lender of your chosen website or speak to them on the phone and let them know what you need to borrow. Or, a broker like Boutell will come back to you with information from the lenders that we’ve searched through for you, with insights into the money you can borrow and your lending terms.
Small loans emerged to fill the gap in the market for people who wanted to borrow a small amount of cash for a short period of time. These loans are much simpler than conventional loans and stop people from having to do things like sell their belongings or deal with shady lenders.
What Kind of Credit Checks Does a Small Loan Provider Do?
Getting a small loan with Boutell has a number of advantages. When you apply for a loan with Boutell, and you’re only asking for a small amount of money, you don’t have to explain why you need the cash. Additionally, when you get a small loan with Boutell, you can rest assured that the application process will be quick and simple. A lot of the lenders that we work with can give you a decision on your loan and get the money you need into your account within 24 hours.
Another big benefit of applying for a small loan with Boutell is that you don’t have to worry about filling your credit history with hard credit pulls.
What’s a hard credit pull?
When you go looking for credit from a lender, they can perform one of two kinds of credit check. Usually, lenders will end up performing both kinds of credit check before you eventually get your loan. The first type of check is a soft credit check. This allows the lender to look at your borrowing history and check for any red flags that suggest that you shouldn’t be able to lend. For instance, if you’re currently bankrupt, then you might have a hard time getting credit.
A soft credit check gives the lender the information that they need, without leaving any marks on your credit history. On the other hand, a hard credit pull allows for a deep dive into your credit’s past. This gives more information to your lender and allows you to complete your loan, but it also leaves a mark on your file. If as company does a hard credit pull and rejects your loan, then future lenders will be able to see that you’ve been rejected form other lending options.
When you look for a loan with Boutell, you can ensure that you only get soft credit checks done to begin with. Once you find a lender that you want to borrow from, you can accept the offer that they give you for the loan, and only then will they perform a hard credit pull.
Protecting your Credit Score
Whether you like it or not, your credit score is an important part of your financial life. The quality of your credit score will determine whether you can get loans in the future, and how good your interest rates will be. While you can still get loans with a bad credit score, it’s best to think about how you can protect your credit score in the long term. Applying for loans with Boutell, so you can avoid as many hard credit pulls on your account as possible, is a good start.
Other things you can do include:
- Getting your details on the electoral register: Putting your details on the electoral role updates your credit score and makes it easier to collect points.
- Correct mistakes: Check your credit history with a company that allows for a free credit check, then contact the credit agencies about any mistakes you see. It is possible that a mistake could be damaging your credit history.
- Avoid lending until your credit score is better: If you don’t need money urgently, then you could consider not lending anything until your situation improves.
- Make sure that you manage your finances properly: Pay any outstanding debts on time, or early if possible, to show the credit bureaus that you can look after your cash responsibly.
- Avoid credit repair companies that claim to be able to fix your score for a fee: These companies will usually only do the same work that you could do for free.
In some cases, you may find that applying for a loan successfully with Boutell and paying that small loan off as quickly as possible will help your credit score too. With a small loan, you’re only in debt for a short period of time, and you pay all your money back on a specified date. As long as you pay the money that you owe at the right time, then you can show the credit bureaus that you can be trusted and start building your credit score again.
Overcoming your Credit Score
While it’s sometimes tempting to hide your bad credit score when you know it’s not exactly up to scratch, this isn’t the best way to get the money that you need. In fact, the truth is that trying to get a loan from a company that claims not to conduct credit checks is dangerous for you and your finances in the long term. You’re much better off applying for a small loan with Boutell and working with a payday lender that doesn’t care as much about credit.
Most payday providers will consider other things, like whether you have a regular source of income and a reliable job, when deciding whether to give you money. This often means that you can get the cash you need easily, without having to worry about credit. There are even lenders available that specialise in bad credit loans.
Small loans no credit check aren’t available from reputable companies, but here at Boutell we can help you to get the money you need and protect your credit in the long and short-term. If you want to move beyond your credit history and start getting your finances back on track quickly, consider using Boutell for your small loans.