Getting a Loan Without a Credit Check
Applying for any standard bank loan comes with those two dreaded words: credit check. Maybe you’re worried that your lender will turn you down because you were late paying your credit card bill, you have a CCJ or you’re self employed, or simply that the credit check will turn up on your credit report and affect your ability to take out future loans. Perhaps you need to deal with some kind of emergency, and you don’t want to have to wait.
It is possible to borrow money without a credit check, even if you have a poor credit rating. You can’t get a loan without some kind of check; financial guidelines from the Financial Conduct Authority state that lenders have a responsibility to ensure the loan you want is in your best interest. But instead of subjecting borrowers to a credit check, some lenders undertake a soft search, which is a less invasive approach to checking your financial status, just as the name suggests.
The top 5 reasons people apply for a no-credit check loan include:
- 1. Self employed cash flow
- 2. Family emergency
- 3. Unexpected repair bill
- 4. No credit history
- 5. Quick decision
Three factors, which can make the process of getting a bank loan frustrating, can also be avoided with a no-credit check loan.
Avoid the wait
Credit checks can take time; depending on the information being gathered, the time it takes to complete a credit check can range from hours to days. And time is sometimes what you don’t have, especially during an emergency. Removing the credit check process will speed up the process of the money reaching your account.
Avoid the hassle
Applying for a loan that involves a credit check means finding all those bank statements, pay slips and other information to hand to fill in very detailed application forms. On the other hand, applying for a loan without a credit check offers a less stressful way to access your cash and paperwork for a no credit loan is kept to a minimum.
Avoid footprints on your credit score
What is arguably most annoying when applying for a bank loan is that the credit check can actually affect your credit score. Each time a credit check is conducted it leaves a mark – a kind of footprint, which money lenders can trace. When this is done repetitively it suggests to lenders that there are issues in your financial history. This, in turn, brings your credit score down. But get a loan without a credit check and your credit score will remain unaffected. This means you can use the cash to help improve your financial status rather than hinder it.
Keeping your credit file in check
We advise you get a credit report done to keep your file in check and make sure the information on it is both positive and correct. Your credit report affects many parts of your life; landlords can review it to decide whether or not to accommodate tenants and some employers look at it as part of their application process. Big credit reference agencies, such as Experian, offer free month-long trials so try these out.
If you’re looking for ways to improve your credit score, read our article ways to improve your credit rating.