Bad Credit Loans No Credit Check
Warning/Information:”bad credit loans with no credit check”, simply do not exist.
This doesn’t necessarily mean that having a poor credit rating automatically stops you from acquiring a loan, especially a short term loan, loans for bad credit with no guarantor do exist and are taken seriously, but just be aware that a check will be made no matter what type of loan you go for.
Is there such a thing as a no credit check loan?
Actually, despite what you might have heard on the ‘grapevine’ there are no such things as no bad credit loans with no credit check. Even if some lenders advertise as very bad credit loans with no credit check, a little bit of probing will show you that, in fact, they do perform a credit check after all, it would probably be more transparent if they said they offered fast loans with no guarantor, because, even for £50 loans for bad credit customers, they will check.
How does a short term loan differ from a standard one?
Short term loans go by many names such as pay day loans, bad credit loans, UK fast loans, and bad credit no credit check loans, but they are essentially the same thing and normally less than a 12 month loan. These loans differ from traditional loans in that the amount borrowed is usually smaller, and are supposed to be paid back in a much shorter time.
For these reasons, it usually not in a big bank’s interest to provide these loans so most don’t. This has left a need that has been filled by lenders who specialise in these short term loans online, who will make their decisions quickly and transfer the funds immediately after, making them perfect for people looking for a quick cash loan to fix their money troubles.
Who usually applies for short term loans?
Typically, these short term loans are aimed at attracting people with low credit ratings or those that want a little £200 loan that do not wish to jump through hoops as a major high street bank would make you do, hence why the adverting tag of no credit check loans is sometimes used even if it isn’t completely true.
People who suffer from a poor credit score are not able to loan money from banks or get credit cards to use in case of a rainy day, so their options are limited to either lending the money from friends and family (often not viable), visiting a loan shark (not advisable and potentially very dangerous), or acquiring a bad credit loan from a special lending company that aim at providing online loans for bad credit.
How do I get a short term loan?
Just like a regular loan, payday loans with bad credit are not much different, you have to apply for one by supplying the requested information such as how you intend to pay the loan back and how much you would like to borrow.
In contrast to a bank loan that requires endless forms and questions and sometimes multiple trips and conversations, these short term loan applications are relatively simple and it is often possible to come to an agreement on the amount and payment schedule, and even receive the money in your account in the same day.
This makes fast payday loans perfect for people who find themselves in a fix, they didn’t see coming.
How much do these loans cost?
No financial institution loans money out for free, so of course these loans come at a price, if you want to borrow a substantial amount, like a £1000 loan you would be clever to look at high street lenders first. The interest is significant and can be tough to repay.
A visit to a lenders website will usually allow you to do some kind of preliminary application or have a quote function where you enter the amount you intend to borrow and then the lender will add their fee and/or interest and show you how much you will have to repay.
The fee and interest should be presented to you clearly and should make sense to you. If you feel like it is not clear enough or that they might be hidden charges, leave the site there are plenty offering same day loans for bad credit, so don’t go with anyone that is not transparent. Try to visit a selection of lender’s sites as the cost of the loans can vary quite a lot and it will allow you to compare and choose the right option for you.
Where can I get a short term loan with bad credit?
As we mentioned earlier, online payday loans for bad credit are not usually issued by large main street banks for a variety of reasons. Fear not though, as at the current time there are more than a few lenders online that are specialising in short term loans for bad credit.
We’ve already spoke about the fact that details, fees and charges can vary wildly from one company to another so please do your homework and spend a bit of time familiarising yourself with what would be considered a good deal for this type of loan, a £100 loan for bad credit still have significant interest and repayments over a short term.
Using one of these brokers is the best way to get the fast loan that you need. They will take your details just the one time and then will contact a long list of lenders that they have on file trying to get the best deal for you. When the lenders offer an amount they will forward that to you leaving you to decide if you want to accept it or not.
There are penalties so be careful
Please bear in mind that loans of this type have penalties for not keeping up the required payments and that missing them will not only impact you financially but also damage your credit rating even more.
However, if you make the payments on time and in full, you will find that your credit score will have improved once the debt has been cleared.
As you can see, it’s in your best interests to make these payments and to ensure this there are a number of things you might want to consider such as cutting back on little luxuries like nights out, junk food, and designer label clothing.
You could also think about selling things that you don’t really need or use anymore such as old clothes or appliances.
What about taking on more hours at work instead of a loan?
Taking on some extra hours at work, or even finding another way to make a few extra pounds online is also a good option, don’t be in a rush to borrow money online. Think about what skills you have that might be marketable and look for online work. For example, online marketing or even English teaching can be a good second income.
Whatever you decide, please take care with your choices as bad ones can cause you to end up in a worse situation than the one you started in.
What are the best bad credit loans with no credit check?
The best bad credit loans with no credit check do not exist. You will first be soft searched to match with lenders, from here, once you accept a loan offer you will be hard credit searched. This is a requirement but you can certainly still look at finding the best bad credit loans and there are certainly plenty of options, if you look around the internet, you’ll find many specialists willing to take on these applications and consider them carefully.