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Loans without a credit check are not available from lenders in the UK. With every short-term and payday loan, a credit check should occur. It is a sign that you are borrowing from a responsible lender. There are alternatives if you’re worried that you won’t be accepted for a loan, whether that be because you have bad credit or no credit history. You may even be accepted for a loan with bad credit history.
If it were possible to get one of these loans, it would involve applying for the amount you want to borrow and not being subjected to checks that assess how likely you are to repay what you borrow, and how much you can afford to repay. For those with poor credit scores or negative notes on their credit history, a no credit check payday loan may seem like a good option to improve their chances of being accepted.
If you are looking at where to borrow money for an emergency situation and spot any loans that don’t credit check, it’s best to pause and consider carefully whether such a loan would offer the service and protection you expect from a lender.
Credit checks are designed to help lenders make sure they only lend money to customers who can afford to repay them and to make sure the loan wouldn’t put the customer in financial difficulty. This protects the customer and the lender too. After all, lending money a customer can’t repay helps nobody in the long run. Here, we’ve looked into loans that don’t credit check and why it’s recommended to use a broker like Sunny, who only work with lenders who conducts credit and affordability checks on all their applicants, instead.
When you apply for a loan through Sunny, by submitting an application you are agreeing to have a credit and affordability assessment conducted on you by our broker partner’s lender panel. This looks at your credit report to see how well you’ve managed to borrow money in the past and therefore how likely you are to repay. Meanwhile, an affordability check looks at your income and outgoings to determine whether you can comfortably afford the repayments on the loan that you want.
If you have a poor credit rating or can’t afford the repayments on some loan amounts, this won’t necessarily exclude you from being able to take a short-term loan, but it may limit the amount you can borrow and mean you aren’t eligible for the lowest interest rates. Click the link below to find out more about the criteria you will need to meet to be eligible for a loan with Sunny and decide if it’s the right choice for you.
Representative Example: Borrowing: £1000 for 18 months, Total Repayable: £1853.43, Total Interest: £853.43, Interest Rate (Variable): 89.9%. Rates between 9.3% APR and 1721% APR – your no-obligation quote and APR will be based on your personal circumstances. Loan term lengths from 3 to 36 months. Subject to lender’s requirements and approval.
Sunny Loans is a registered trading name of Upward Finance Limited, who is an introducer appointed representative of Flux Funding Limited, who is a credit broker, not a lender. Loan repayment terms are 3-36 month loans.
Warning: Late repayment can cause you serious money problems. For help, go to www.moneyhelper.org.uk.
When applying for a loan, a responsible lender will perform credit and affordability checks to evaluate whether the borrower is able to pay back a loan.
A credit report check discovers whether you have applied for loans and your history of paying them back. An affordability check looks at your income and monthly outgoings to determine whether you can comfortably afford the repayments on the loan you want.
Neither of these checks would occur for no credit check loans. A lender offering you a no credit check short-term or payday loan is willing to take a risk that you won’t pay back your loan. So even if you have a bad credit history, applying for a no credit check loan is not a good option. Credit checks are required by law to be conducted when offering loans. A company offering a no credit checks for a payday or short-term loan is not authorised by the Financial Conduct Authority (FCA). Applying for a no credit check loan is, therefore, extremely risky. Find out more about the dangers of no check lending.
Suppose you are looking to borrow money for an emergency and spot no credit check loans with guaranteed approval. It’s best to consider whether such a loan would offer the service and protection you expect from a lender.
If you have a poor credit rating or can’t afford the repayments on some loan amounts, this won’t necessarily exclude you from being able to take a short-term loan. Still, it may limit the amount you can borrow and mean you aren’t eligible for the lowest interest rates.
We understand that a bad credit record can be a significant hindrance when unexpected bills or large expenses occur. Even if you have a good income, having a limited credit history can make it challenging to be approved for a loan. These issues make a no credit check loan attractive but avoid this option at all costs.
There are many ways to improve your credit history to help you get a loan, most of which are achievable. Our guide on how to improve your credit score is a great starting point on your journey to better credit history.
Improving your credit history isn’t always a quick fix. Depending on the extent of your previous financial difficulties, credit score improvements can take time, but knowing when you will be likely to achieve a healthy credit score will benefit you when making financial plans for the future.
Getting a loan, even with bad credit, may not be as impossible as you think. At Sunny, our broker partners can find loans for people even with bad credit. However, poor credit history will affect the amount you want to borrow and the repayment period you would like.
Your credit score is calculated using your financial history and past behaviour. It is generally used to predict how likely a lender thinks you will be to pay back the money they lend you and helps them decide whether they should approve your application. Your credit score can affect your ability to borrow money through credit cards, loans and mortgages.
Credit Reference Agencies compile information about your credit history and will pass this on to the lender you’re applying for a loan with. The three main agencies are TransUnion, Equifax and Experian, each having their own credit check tools. They gather information using the electoral roll. Court records and information you’ve applied for credit with such as banks, mortgages and energy suppliers.
Each Credit Reference Agency uses different scales to show what a good, bad, or excellent score is. Don’t be alarmed if you find three slightly different versions of your credit score when you check.