What are no credit check loans?
A no credit check loan is when an individual applying for a loan is not required to have their credit history checked in order to assess their overall affordability and financial behaviour.
No credit check loans may be the fastest and easiest way to access additional finances, however do any lenders offer the option to apply for a loan with a credit check?
For many people in the UK, applying for a loan can come with many different hurdles due to the amount of checks that particular lenders have to carry out when trying to decide how creditworthy an individual is. These checks can include address and employment history checks as well as monthly earnings and outgoings.
All lenders are required to carry out a credit history check as this will provide them with an overall view of an individual’s financial state and their affordability to ultimately be able to repay the loan back. If a credit check was not performed by lenders, the individual applying for the loan could get into financial trouble as they may not be able to afford the repayments of a loan. A credit check is in the best interest of the individual applying for a loan as this will ensure that they are not able to take out a loan which is too big for them to repay.
Can I get a loan without a credit check?
Typically all lenders will perform the following checks on anyone applying for a loan:
- Identity check
- Address and proof of residency
- Monthly Salary and outgoings
- Employment history
- Credit checks – for some lenders a soft credit check may be performed
The checks listed above are designed to ensure that that an individual cannot take out any financial product that may get them into financial trouble. By applying for a no credit check loan, there is no way of truly knowing an individual’s affordability and therefore all UK lenders are required to carry out a credit check on all individuals when applying for a loan.
For individuals specifically looking for a loan without a credit check, this can be for a number of reasons. The individual themselves does not have a great credit history and therefore their affordability will likely be affected by this preventing many lenders from offering them a loan. Or the individual does not actually have a credit history due to the fact that may never have turned to additional financial products such as credit cards or loans.
Bad credit loans no credit checks
Unlike many banks and building societies, the online loan application process will provide you with an instant decision. Although no UK lender will offer a loan without a credit check, the credit check itself is carried out instantly, meaning that the online loan application process will only take a couple of minutes to complete.
Although payday pixie does not directly carry out any form of a credit check, we work with a panel of lenders that will perform soft credit searches to assess an individual’s affordability and financial history. We understand that an individual’s credit history can change dramatically over the course of their life which is why we welcome all credit histories.
Why is a credit check carried out when applying for a loan?
- To assess your loan affordability
- To determine whether you will be able to repay the loan in full in the agreed loan term
- To check for any negative marks against your credit file such as bankruptcy or CCJ’s
- Confirmation of your name and date of birth
- Searches for any other forms of finance that you have previously/recently taken out
- To ensure that no one has stolen your identity and has committed fraud under your name
Which direct lenders provide loans with no credit checks?
In short, there is no lender that can offer any form of loan or financial product without carrying out a comprehensive credit check in order to assess an individuals financial behaviour and affordability. A credit check is in the best interests of the individual applying for a loan as this will ensure they are not offered a loan too great in value that they will struggle to pay it back.