Pay day Loans No Credit Check

Borrow £100 - £2,000

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Representative example:

Borrow: £500 over 16 weeks. 4 repayments of £183.59. Total amount payable £734.36. Interest rate: 151.4% pa (fixed). Representative 766.18.% APR.

Warning: Late repayment can cause serious money problems. For help, go to moneyhelper.org.uk

Compare high cost short term quick loans at www.choosewisely.co.uk

Information for UK Borrowers with Poor Credit History - Are you in need of a Payday loan but worried about your poor credit history affecting the outcome of the application?

Don’t worry you are not alone…Many people turn to these types of instant loans because they find it hard to secure finance from the banks and other longer-term Finance Companies – This is usually due to the customer having a poor credit history. 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 they can be expensive. However, the Financial Conduct Authority (FCA) have 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.

 

Do all Payday lenders run credit checks?

Nowadays there’s no such thing as No Credit Check Payday Loan. 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 check as it shows us as Lenders lots about the applicant and their relative risk profile. We then use this risk profiles, along with many other factors, to help determine credit limits for customers. Long gone are the days when the likes of Wonga would accept 9 out of 10 loan applications in the pursuit of profit. Lenders must Treat Customers Fairly and adequate affordability assessments in the form of Credit checks are the number one tool in our assessment arsenal.

 

My Credit Is very poor - will I be accepted?

This all depends on your 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. Meaning lending you more may only make your situation worse. In these instances, providing guidance on free Debt Management charities may be a more suitable option.

However, if your poor credit history and low credit score is related to a change in circumstance 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 remember your credit score is 6 years old, so, 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.

Its also important to remember that your credit history is just one element of the underwriting process 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. What’s marks as apart from our competitors is are ability to make decisions on are 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 fully understand their needs and requirements. It’s this pragmatic approach to lending that keeps our customers loyal and our default rates low.

 

Can taking out a loan help improve my credit score if I have bad?

credit?Again, the answer to this is not black and white, and depends 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 large Payday loan out over a longer period, of say a year, upon settlement of the loan it will show lenders that you can be trusted with credit, and will boost your credit score. The trick here is to try and keep the number of small loans over a short period to a minimum.

Okay, so I now 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?

So, you’re thinking of borrowing money either short term or for 12 months, but you know you have Bad Credit. Stop! Before you go any further check out these simple helpful tips and pointers which will increase your chances of being accepted:

  1. Check your credit score for free. Many CRA’s now offer free credit reports for life. We recommend you use Clear Score from Equifax. Once you have this in front of you, you will be able to see negative and positive factors affecting your score.
  2.  If you have any CCJ’s or defaults – try arranging repayment plans with the lenders so they become settled and satisfied.
  3.  If you are getting behind with payments try requesting reduced payments with the lender that are affordable. This way payments won’t fall into arrears and get marked as late and your credit score shouldn’t be affected.
  4. If you are thinking of applying for a large loan – clear your credit cards, overdrafts and ensure you are up to date with other credit agreements. We would suggest you wait at least a week until applying once you are up to date with existing credit agreements.
  5. Notice of corrections – If you are aware of any errors on your credit file which affects your credit score in a negative way you can write to each of the main CRA’s who will make a note on your file for lenders to see. We suggest you speak to Equifax, Experian, and Callcredit.
  6. You may want to apply for a loan using a broker like www.kiteloans.co.uk. Using a broker may increase your chances of being accepted as you are only making one application, but several lenders are able to make a decision on the loan request. So, if one declines you, hopefully there’s one out there that will accept you.
  7. 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 apply. We suggest you never try more than 2 times to acquire credit in any one month.

We hope you found this article useful. Feel free to look around the rest of our website as you may find more helpful information regarding loans.