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If you have a bad credit rating, you may be considering whether no credit check loans are available. However, lenders in the UK won’t allow you to borrow from them without running a credit check first. This is because they’ll need to know how you’ve managed credit in the past, so they can assess whether you can afford to repay the loan.
So, what happens if you have a bad credit history, have been rejected for other types of credit, but you need a loan fast? Life can be unpredictable sometimes and you may want to borrow money in a hurry, but a short-term loan with no credit check, or any other form of credit, is a big commitment. That’s why doing your research is so important, no matter how quickly you need the cash.
While the decision to take out a loan with your preferred lender is ultimately up to you, it’s crucial to compare different loan providers, more so if you have bad credit. No credit check small loans, loans without a guarantor, or larger sums that don’t require a lender to look at the way you’ve borrowed in the past can be a red flag, so take your time when weighing up your options.
You may find lenders offering quick loans with no credit check, but be wary of these as their loans will likely come with high interest rates and strict or shorter repayment terms making it harder and more expensive to repay what you owe. Such lenders could also be unregulated by the Financial Conduct Authority, which means your consumer rights may not be protected.
Likewise, urgent loans with no credit check may sound appealing but not checking your creditworthiness when you apply is a surefire sign that the lender may not be heeding to the UK’s rules on borrowing credit. Our recommendation? Avoid no credit check loans in the UK and only borrow from regulated lenders – and only if you can afford to repay the loan.
As a responsible and FCA-regulated lender, at Creditspring, we’ll check your credit rating, plus run other eligibility and credit checks for any of our no-interest loans (83.1% APR). We’re a finance subscription service, which means we take a different approach to traditional credit cards and loan providers. We consider every loan enquiry carefully, even if you have a poor credit history, and we can help you build better financial habits for the long term.
We provide small loans with no interest (83.1% APR) and only a low monthly membership fee. As a member, you can access our loans, which come in two equal parts (for example, £500 + £500). Once you’ve repaid the first part in full within six months, you can request the second part, which you also need to repay within six months.
We believe this unique approach not only makes borrowing affordable and manageable, but it also provides a way of helping you improve your score, if you have a low credit rating. How? Well, when you make your payments on time, you’ll show lenders that you’re a sensible borrower, which could boost your chances of approval for credit in the future. It’s worth noting that if you are late or miss any payments, along with other external factors, this can have a negative effect on your credit score.
As FCA-regulated lenders (including Creditspring) will need to conduct a credit check when you apply for a loan, your no credit check options will, unfortunately, be limited. But, it’s not impossible. You could try credit unions, which offer finance products like loans, savings and current accounts to their eligible members. These non-profit organisations can lend small amounts of money - but be mindful that credit union loans are usually smaller than what banks and other lenders can provide.
Understanding the difference between hard and soft credit checks is crucial when you’re applying for a loan. A lender will run a hard credit check at the application stage, and this will be recorded on your credit report. It’s important to remember that too many hard credit checks during a short period of time can negatively impact your credit score and show lenders that you may be desperate to borrow money.
In contrast, a soft credit check – or ‘soft search’ - won't impact your credit score, and neither will it be visible to other lenders. Examples of a soft credit check include when you check your credit report, or when a lender or broker looks at what products and interest rates you’re eligible for, like insurance, credit cards and mortgages in principle. Another example is when you check your eligibility for a Creditspring loan and we’ll run a soft credit check at this stage, which will not impact your credit score.
A credit check allows lenders to determine your creditworthiness and ability to repay the loan. If you have a history of missing credit payments and your credit report shows that you haven’t been able to manage credit well in the past, they could see you as a high-risk borrower.
This will depend on the lender, but as we said earlier, approach any loan that doesn’t require a credit check with caution, because it could be unregulated by the FCA and will likely come with high charges making it harder and more expensive to repay.
We understand that life can be unpredictable, and emergencies can appear out of the blue. While it’s possible to find emergency loans when you need funds for an unexpected big bill or car repair, for example, take care when considering any loan that doesn’t require a credit check.
A Creditspring loan can be used for all sorts of predicaments, and you’ll be safe in the knowledge that we’re a responsible, FCA-regulated lender. Got bad credit? Let’s check your eligibility first and see if we can help you on your journey to financial stability and wellness.
