No credit check loans
It may often be the case that when people find themselves in financial difficulty they search for a payday loan with no credit check. The issue here, is that in the UK there is actually no such thing as an authorised lender who will offer you credit with no credit check at all. If you do find a lender who is willing to lend you cash without carrying out an official credit check then you should be wary of their viability to lend, and question whether the lender may in fact be trying to scam you.
Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk
Representative Example: Borrow £400 for 4 months, four monthly repayments of £149.37. Total repayment £597.48, interest rate p.a. (fixed) 255.5%. Representative APR 939.5%. Compare Moneyboat loans.
Can I get a payday loan with no credit check?
In short, the answer is no.
In the early days of the domestic payday loan industry, regulations were light, leading to problems for some borrowers. This was not helped by lenders who were offering easy payday loans with no credit check.
Since an update in FCA regulations in 2015 short term lenders are forced to comply with strict lending regulations which include carrying out official credit checks on all applications. Whether they decide to lend to the customer after reviewing the credit score is then down to each company’s discretion, however lenders have become much less likely to extend loans to those who cannot repay them.
With the FCA ready to extend its current approach through to 2020, the future could bring even more positive news for consumers.
Those who make informed, appropriate use of payday loans can count on enjoying the same kinds of benefits and security.
As a responsible direct lender with a transparent lending process, Moneyboat regularly helps consumers obtain financing that they can use to overcome occasional, short term financial hurdles, without offering payday loans with no credit check.
Why is a credit check important?
A lender can never be absolutely certain that any borrower will be able and willing to repay a loan. Whether because of a lack of financial means or simple irresponsibility, a number of borrowers will default on their obligations.
Short term lenders, just like others, have to be confident of recovering the money they lend out if they wish to stay in business.
If certain borrowers fail to repay their loans, fees and interest paid by others must make up for any associated losses.
If every loan applicant were just as likely as all others to repay, loans could be responsibly approved with no regard to individual circumstances.
Information about financial circumstances and history, can help highlight those borrowers who are most likely to repay.
Payday loans with no credit check forgo this important step. As with many other responsible lenders, Moneyboat uses a standard, discreet credit check process to inform loan approval decisions. our loan underwriters assess credit-related information provided by Call credit before extending any loan offer.
How does the credit agency know my credit history?
Many people are surprised to find out that most of the institutions that offer credit, also report on credit as well. For example, if you borrow money to purchase a car, the lender will let the credit reporting agency know when you took out the loan, how you are managing with your repayments, and how much is due in total.
The answers to these questions offer the credit reference agencies the data they require to build a responsive credit score.
Where can I get a no credit loan?
As mentioned, trying to get a loan with no credit check may be opening yourself up to risk. Although there are some charities and Unions who may offer a no credit check, or low credit loan, it is still important to keep safety at the forefront of your decision and carry out essential background research.
Moneyboat offer unsecured direct loans to customers in the UK with varying credit scores. Application is free, so check your eligibility today to see if a loan with us is the right option for you.