A lot of people find themselves in difficult situations where they are in need of some extra cash. Whether they have an unexpected debt they need to pay or suddenly lose their job, borrowing money is often where people start to look first.
If you have a poor credit history, you may think that you simply can never get a loan. But this is not always the case. In certain circumstances, you may be able to enjoy loans and credit. Let’s take a closer look at no credit check loans and whether this is an option for you.
How Can I Get a Loan with No Credit Check?
You may be searching for a no credit check loan if you don’t have any credit history or you’ve got bad credit already. Of course, the appeal is the idea that lenders do not check your history so you are issued with the cash you need for your individual circumstances. Often people need money in a hurry and they believe this is an option that can get them what they need.
What is a Credit Rating?
Before we take a look at how you can get a loan, it is important to understand what a credit rating is. This is simply an assessment completed to see whether someone is a risk to a lender or not. The data is based on your previous borrowing transactions and this creates a score. This is what prospective lender companies will look at before you’re accepted for a loan. There are ways online that you can check your rating if you want to see what it is before making an application.
You may have heard of a soft credit check. This is carried out by lenders on your credit report. The good thing about this is that they can check your score for an application without leaving a mark. In other words. no other companies will be able to see they have checked for loans and it will not negatively impact on your credit score.
Unlike soft checks, hard checks for loans will stay on your file. In fact, this action by lenders will stay on for 12 months and other companies will see it. It is an in-depth look at your payments such as if you have a loan without guarantor .
Will I Be Accepted for a Loan with a Bad Rating?
A lot of people are disappointed to find out that they have bad credit. They think it is the end of the world and they will never be accepted for loans. But this is not necessary true. Having a bad score does not automatically decline your application for a loan. Lending companies will often consider a number of different factors before they issue loans. So, it is important not to lose faith and and give up before submitting an application.
A No Credit Check Loan
So, what are no check credit loans? Simply these are loans that lenders or a broker may offer that does not solely depend on your credit score. Instead, they will look at other factors to evaluate whether they want to offer you loans or not. This includes asking whether you have a job and a current source of income.
It is important to bear in mind that all lenders that are regulated will carry out checks before they issue you with a loan. From their point of view, they need to know that you can pay it back and that you are not too much of a risk for them. This includes the ability to pay back interest too.
Something for you to realise is that you may have to pay more in interest on no credit check loans. This will need to be something that you budget for and lenders will consider this in your application.
Which Loan Company is Best for Bad Credit?
There are some broker and loan companies out there that can offer you loans even if you have bad credit. The best thing you can do is investigate and decide for yourself. There are a few factors that you can look for to find the best company for you.
Tips for Finding the Best Loan Company
You should look for a company with years of experience and good feedback from customers. The numbers of years they have been in business can indicate that they are trustworthy and know what they are doing. With good feedback from customers, you can see that there are no catches or hidden charges or details.
One of the most important things to look for is a company that is regulated by the Financial Conduct Authority. This means they are allowed to offer loans to the public and have safe services you can enjoy. No company should be going down the path of offering unregulated loans. If you come across a firm that is not FCA regulated, it is best to no look at the loans they are offering.
Can I Get a Personal Loan with a 500 Credit Score?
Credit scores normally run from 300 to 850. So, if you have a score of 500, you may be wondering what you can get. Well, for anyone that has a score under 580, they are known as a customer that has bad credit. This does not necessarily mean you cannot get a personal loan. But it may be harder to access one. Again, companies do not always solely look at your credit score. There will be some lenders that look at your financial circumstances too to understand the whole picture.
I Need a Loan but Keep Getting Declined
You may be declined for loans without guarantors because your score is low and disappointing for a broker or lender at first glance. This can affect an offer for a loan and you may find yourself struggling to come up with the money that you need. But there are ways that you can improve your score for applying for loans in the future. There are things you can do in the short-term and loan-term to help your financial situation.
Ways to Improve Your Credit Score
Right now, you can avoid applying for any more credit. Lenders that are carrying out hard checks are harming your score, which is the last thing you want when you are not getting a loan from them. You can also make sure that you are featured on the electoral roll, as this can improve your score. If you have any credit cards that you do not use, also look to cancel these. But the best way to improve your score is to pay off any debt that you have. This should be done on time and in full each month to avoid affecting your credit score. This is going to demonstrate to lenders that you are not a risk and you can handle the repayments each month. A good way to do this is by setting up a direct debit. This ensures that the money comes out of your bank account and you do not accidentally spend it. Improving your score will take time and it is important to be patient. It will not change overnight.