Information for UK Borrowers with a Poor Credit History - Need a Payday loan but worried about your poor credit history? An alternative to No Credit Check Payday Loans may help.
Many people may seek types of instant loans that require no credit check because they find it hard to secure finance from banks and other lenders due to having a poor credit history, we also offer pay-day advance loans and loans for bad credit.
A Payday Lender (HCSTC provider) can step into the market at this point by offsetting the risk of lending to someone with a poor credit history. They do this by setting a higher rate of interest over a shorter period of time. This type of loan is not for everyone as it can be expensive. However, the Financial Conduct Authority (FCA) has recognised that lenders like Fast Loan UK play a vital role in the Finance Market and wider Economy by providing short term credit in times of need to households up and down the Country.
So, if you are seeking no credit check payday loans when you need to cover a financial emergency, choose our alternative instead. We are happy to welcome applicants with a poor credit history as long as you can afford the required repayments. Choose up to £800 and flexible repayments of up to a maximum of 8 months. Click apply now to see if we can help you with an emergancy loan or a no-credit check loan today by completing our quick online application for a decision in principle straight away when you need it.
Do all Payday lenders run credit checks?
Nowadays there’s no such thing as No Credit Check Payday Loans. This is because all lenders who hold Consumer Credit Licences must by law take measures to properly assess each and every customer they lend to. A credit check is an essential part of this as it shows us as direct lenders relevant information about an applicant and their relative risk profile. We then use this risk profile, along with many other factors, to help determine credit limits for customers.
Long gone are the days when the likes of lenders such as Wonga would accept 9 out of 10 loan applications in the pursuit of profit. The industry is far more regulated now by the FCA due to the bad practices of payday lenders in the past to protect customers. Lenders must Treat Customers Fairly and equally whether they have good or bad credit. Adequate affordability assessments in the form of credit checks are the number one tool in our assessment approach, ensuring we can provide help to those who can afford it and are not in current financial difficulties.
So if you are concerned about having a low credit rating and this is the reason why you want to find no credit check loans, choose our alternative at Fast Loan UK instead.
My Credit History is Very Poor - Will I Be Accepted?
This will all depend on your current circumstances. For instance, if you have recently taken on many forms of credit, i.e. Credit Cards, Loans, Phone Contracts... and subsequently missed payments, or worse, defaulted on any of them, it shows us that you are currently experiencing financial hardship. This means lending you more may only make your situation worse. In these circumstances, providing guidance on free Debt Management charities may be a more suitable option, something you can discover more about at Money Helper.
However, if your poor credit history and low credit score are related to a change in circumstances you experienced several years ago, and we can see that you have since tried your best to repay the credit agreements, then we may be able to help. You need to consider that your credit score reflects the past 6 years, meaning one bad year of financial mismanagement 6 years ago, followed by 5 years of excellent financial management, can still result in a poor credit score. This is why despite us not being able to provide no credit check payday loans, we will still take the time to assess your application.
What marks us apart from our competitors is our ability to make decisions on a case by case basis. We always allow some flexibility in our rules as we know life isn’t set in stone. At Fast Loan UK, we make sure we speak to each new applicant in order for us to fully understand their needs and requirements. It’s this pragmatic approach to lending that keeps our customers loyal and our default rates low.
I know there’s no such thing as No Credit Check Payday Loans, but I have poor credit and need to borrow. What’s the best thing I can do?
If you’re thinking of borrowing money for the short term or up to 8 months, the good news is there are lenders willing to help despite a poor credit history. However, before you apply for any borrowing, being as informed as possible first is always recommended. The following are some simple helpful tips which may increase your chances of being approved for the loan you need:
• Check your credit score for free - Many CRAs now offer free credit reports for life. We recommend using Clear Score from Equifax, but you can also access your credit score from Experian and TransUnion. You will be able to see the negative and positive factors affecting your score and choose to look at your full credit report for more detail.
• Do you have any CCJs or defaults? – try arranging repayment plans with the lenders so they become settled and satisfied. This will help to improve your credit score over time.
• Getting behind with repayments? - try requesting reduced repayments with the lender that are more affordable for you. This cannot be guaranteed, but this way you can ensure your repayments will not fall into arrears and get marked as late, helping your credit score avoid dropping further.
• Applying for a large loan? – clear your credit cards and overdrafts, and ensure you are up to date with other any other credit agreements. We would suggest you wait at least a week until applying for new credit once you are up to date with existing credit agreements.
• Notice of corrections – if you are aware of any errors on your credit file which negatively affect your credit score, you can write to each of the main CRAs who will make a note on your file for lenders to see. The main CRAs are Equifax, Experian, and TransUnion.
• Considering using a broker? - using a broker may increase your chances of being accepted as you are only making one application, but several lenders can make a decision on the loan request. So, if one declines you, another may accept you instead. However, you’ll need to consider whether there are any referral fees applicable first.
• Do not make several applications in a row – every time you apply for a loan you leave a search footprint. So, if you keep getting rejected in a short period of time, it will make it harder for you each time you next apply. We suggest no to try more than twice to acquire credit in any one month.
We hope you found this information useful. Feel free to look around the rest of our website as you may find more helpful information regarding loans. If you want to start an application for our alternative to no credit check payday loans today, click apply now and get a decision in principle fast. Please get in touch if you have any queries and need further help.
FAQs on No Credit Check Payday Loans
How Do I Apply for Your No Credit Check Payday Loans Alternative?
It’s simple to apply at Fast Loan UK, helping you quickly see if you can be approved for the loan you need. You will need to meet the following eligibility first:
• Be aged 18 years old or over
• A current UK resident
• In Full-Time, Part-Time or Self-Employment
• Have a regular income
• Be able to provide your bank account and debit card details
We cannot provide loans with no credit check, so a soft check of your credit file will be performed to provide a decision in principle. If we can help, we’ll then perform a hard check during your application whilst also assessing your affordability. Whether your credit rating is excellent or poor, we may still be able to help you today as long as the loan is affordable for you.
Can Taking Out a Loan Help Improve My Credit Score if I Have Bad Credit?
This will depend on many factors, for instance, if you were to take out several small payday loans over a short period of time, it may show other lenders that you struggle to manage your bills with your monthly income. This in turn may put lenders off from accepting your application. However, if you were to take the occasional unsecured loan over a longer period such as 12 months, upon settlement of the loan it will show lenders that you can be trusted with credit. By keeping the number of loans you require to a minimum whilst maintaining them each month, this may help improve your credit rating.
How Can You Help Those with a Poor Credit Score?
It’s all because we take a human approach to lending decisions, rather than use automated decision making. It’s important to remember that your credit history is just one element of the underwriting process that lenders use when making decisions. Therefore, you may have the highest possible credit score but fail affordability in the form of an Income vs Outgoings assessment. This works both ways of course because we may be able to lend to someone with a poor credit score if they have a good affordability score. Whilst banks and other lenders may reject you simply for having a low credit rating, we take the time to understand your situation and how we can help.
Can I Still Choose Flexible Terms with Poor Credit?
Yes, we are happy to help where we can to make any loan with us more affordable. You’ll be able to choose the repayments you want before applying, so if you require 6 months to repay rather than 3 months, you can choose this. You’ll then see the approximate cost of the loan including interest with the repayment amount. Rather than seeking no credit check loan options, our alternative at Fast Loan UK may provide what you’re looking for in the short term.