Are you having a hard time acquiring a loan? Is every bank you approach turning you down? For those of you looking for a quick loan while bearing poor credit scores, no credit checks loans UK can come to your rescue at your time of financial need.
More About How ‘No Credit Check Loans UK’ Work?
First, you will have to reach out to your preferred ‘no credit check loans UK’ credit agencies such as Experian or Equifax from whom you are seeking credit. The lender then proceeds to check your credit history and assess you on your ability to clear debt borne by you.
If eligible, the lender will then request for details from you such as; your name(for application purposes), address, monthly salary, and details of your employment.
Difference between Regular Loan Providers and No Credit Check Loans UK Providers
While regular loan providers do extensive research on your credit history and other background checks before coming to a consensus, no credit check loans in the UK purely assesses you on whether you can afford to pay back the loan. Hence, acquiring a loan even with low or non-existent credit scores is much easier through no credit check loans UK. Therefore, if the lender believes you are capable of repaying the loan, you will get one.
This is mainly due to the diversity of loans provided by regular loan providers in comparison to the lack of diversity provided by no credit check loans UK. No credit check loans UK generally provide the low amount, short-term loans, whereas regular bank or loan providers have a variety of loans such as short-term, long-term, small and large amounts, with top-up potential. Hence, no credit check loans bear a higher risk from the lender’s point of view, hence they have higher interest. Then again, these entities are created to cater to applicants looking for a quick and small amount loan.
Features of No Credit Check Loans UK
- Minimal credit requirement
This is the most beneficial aspect of no credit check loans in the UK, as their selling point is ‘loans based on affordability and no credit check’. One can receive quick financial aid with minimal credit history. This is especially beneficial to first-time loan takers, as their credit history is non-existent.
- Small Cash Loans
These loans are generally small in nature. Variants such as; 500 loans no credit check and 1000 loan no credit check are available. Certain lenders even offer up to 5000 pounds, however, that is on the higher side.
- Short-Term Loans
No credit check loans are short-term in nature, this is done to reduce the risk borne by the lender so they can recover their money as soon as possible.
- High-Interest Rate
When compared to normal loan providers, the no credit check loans UK places a higher interest rate on your loan. This shouldn’t be too much of a burden as the loans are itself short-term in nature. However, each lender may impose a different interest rate.
- Quick Application Procedures
Don’t you hate it when you have to fill out page after page when applying for loans? No credit check loans UK are designed to be quick and easy, saving you the hassle and stress of filling out those never-ending blank boxes.
- Individual-Based Loan Amounts
Loans will be offered to you based on your financial capability. Therefore you might not get the amount you want, but you will always receive an amount that you will be capable of paying back. Hence you will not be in a state of a financial burden as you won’t be allowed to bite off more than you can chew.
- Individual-Based Loan Term
This aspect, unlike the previous point, is decided by the applicant in most cases. Hence, you can choose how long you want your loan term to be. However, no credit check loans in the UK usually span for a maximum of 1 year. Most terms are given in multiples of quarterly segments, which means most loans span a length of 3, 6, 9, and 12 months.
- Personal and Financial Security
Your personal and financial details are secure as the providers of these loans operate with the same technology that banks and prestigious money lenders use.
Different types of No Credit Check Loans.
- Payday loan
This is a small loan given to you relatively quickly, with an agreement that the loan will be paid back when you receive your monthly wages.
- Bad-credit loan
These loans are sought out by those who haven’t had the ability to build a good credit history or score. These loans can be given to the applicant with or without collateral, depending on the nature of the loan.
- Text loan
When you are in a financial crunch. You can apply for short-term loans by simply sending out a text to your loan agency which will give you money instantly with no background checks. This can come in handy when you are traveling and in need of some money because all you need is a mobile phone in your pocket.
- Unsecured loan
This is a loan that is void of collateral, meaning the lender does not secure collateral against an applicant’s loan. In return for the risk borne by the lender, these loans will have a high interest and short repayment time.
As mentioned earlier, all of the above loans are short-term, high-interest loans, and can vary based on the lender.
How to use No Credit Check Loans UK to your Benefit
No credit check loans can be used as a launching pad towards solidifying your credit rating. I don’t mean to encourage you to take loans and spend most of your wages paying back yesterday’s expenses. However, loans, when used wisely, can be extremely beneficial to every person.
Getting back to the launching pad aspect. At some point in your life, you might urgently require a loan. At that time you might not be able to go to your bank and get an advance quickly if you don’t have a pre-existing credit history. Since no credit check loans are easy to get, the moment you avail of a loan, an entry in your credit history is created, making the next time you want to apply for a loan much easier. Also, the next time you go to a bank for a loan, you will be able to avail loans with lower interest rates and longer durations. Basically you can apply for your preferred loan type.
So the next time you are looking to buy a TV, or a PlayStation, or even shoes, and you have the money saved up for it., take a no credit check loan and make sure you pay on or before time, just to have an entry in your credit history. Then when you really need a loan, you are much more eligible to receive one. You will also receive credit points, which you can use to save more money when needed in the future.