Life is full of unexpected financial demands, so it’s good to have options when you need fast cash. Among the various funding alternatives available to UK consumers, payday loans provide straightforward access to flexible funding.
As long as you’re employed, with a paycheck on the way, top lenders are ready to furnish small loans to help bridge your spending needs, until your pay arrives.
One alternative, sometimes called a no credit check payday loan, may be slightly misunderstood by British borrowers. In practice, qualifying for this type of finance will always include a full credit check should you decide to accept the offer presented to you – though the requirements for approval may not be as strict as some conventional loan options.
Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
With so many financial products on the market, it can be hard sorting out different types of personal loans. If you’re overwhelmed working out the particulars, comparing various alternatives can help you settle on the best type of loan for your funding need. While examples such as mortgages, car finance, and student loans target specific demands, flexible forms of funding offered by payday lenders can be used as you wish.
Whilst comparing loans, you may encounter lenders promoting payday loans with no credit check. The concept is somewhat misleading. You shouldn’t expect to get approved by a payday lender without the provider first considering your credit background. The good news, however, is that you won’t necessarily be declined for a payday loan, simply because your credit file isn’t perfect.
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Each payday lender sets its own terms and conditions, so eligibility is based upon individual lenders’ rules. The amount you can borrow, the repayment period, and the terms of the loan are all agreed upon before payday lenders transfer funds to your bank account. Before considering your application, payday lenders may ask you to provide information such as:
Though some payday lenders promote no-credit-check products, approval nonetheless requires that applicants meet various conditions and criteria and a full credit check will always need to be performed. A history of bad credit doesn’t guarantee you’ll be passed over for a payday loan, but it’s still important to protect your credit rating.
From your earliest credit relationships onward, UK credit reporting agencies maintain information about your repayment history, outstanding balances, and available credit lines.
When you apply for conventional financing, banks and other providers commonly conduct extensive credit research, using information provided by Experian, Equifax, and other credit reporting companies. Taking an in-depth look at your financial past helps banks evaluate creditworthiness for mortgages, car finance, and personal instalment loans of this type. Unfortunately, each time a bank conducts this type of hard credit pull, the practice leaves a mark on your credit file. Accumulating too many marks can have a negative impact on your credit score.
During pre-approval, payday loan providers may instead utilise a process known as a soft search. The abbreviated check takes less time to complete than a full-scale credit check does, without leaving the same type of fingerprint on your credit file, associated with a comprehensive credit pull.
If you’re just getting started establishing credit credentials, there are a number of things you can do to build a solid credit file. Similarly, if you’re working to restore a damaged credit history, maintaining the following good habits can help boost your score:
In addition to relaxed credit check requirements, payday loans have a number of distinct advantages, compared to other types of finance.
The sooner you apply for a loan, the quicker you’re likely to gain approval from a matched lender. Using our online brokerage further accelerates the funding process, giving you access to multiple lenders from one intuitive platform. Depending when you apply and the lender offer you select, loan proceeds may be transferred to your account within hours of approval.
Before counting on short-term funding, you must meet a set of basic criteria, including these conditions:
When you need money fast, payday loans provide stand-in cash, until your paycheck arrives. No credit check versions are offered by some lenders, but qualifying for the funding does require a look into your credit past via a full credit check. If you need a short-term financial bridge, completing an online application is your first step toward a lender match.