If you need a loan but you have a less than perfect credit score, you might be wondering if all lenders check your credit rating. In the UK, all lenders are obliged to check your credit score so there is no such thing as a 100 loan no credit check. However, this does not imply that just because you had issues in the past and obtained a poor credit score you cannot get a loan today.
What Is A Credit Check?
Credit checks and credit ratings are not the easiest of things to work out. What one lender might think is a very bad rating and refuse to give you credit, another might think it not so bad and offer you a loan.
Another thing that is confusing is that there is no one credit reference agency giving you a credit score. In the UK, there are in fact three credit reference agencies, Equifax, Experian, and Callcredit. These three all go towards giving you a credit score based on such as your past borrowing, whether you are on the electoral roll, late or missed repayments or CCJs. With Equifax, you might have a credit score of 459. Equifax would class it as 999 and Callcredit would have you down at 609. These are all different scores from the same information about you.
In the UK, lenders have to perform a credit check before approving you for a loan. They do that to protect themselves as they get an idea as to how big a risk you are. They will also base their decision on the amount of income you have coming in and going out each month. This is to ensure that the loan is affordable to you.
Options for a 100 Loan No Credit Check
While it is not possible to get a loan without the lender making a credit check, not all lenders will make the same type of credit check when you apply for a loan. Some will make a thorough check while others will make just a soft credit check.
With a soft credit check, lenders do not too much into your credit file and they will consider your current status. With the loan being small, only £100, lenders will not be too interested in your credit rating.
They will want to know exactly what you have coming in each month and what you have going out. From this information, they will determine if the loan you applied for is going to be affordable to you.
There are many types of loans out there, but if you only need to borrow £100, the payday loan is the most suitable option. The payday loan is the easiest type to be approved for if your credit rating is bad, as the amount of money borrowed is small and you repay the loan early.
Reasons Why You Might Need a Payday Loan
Lenders are generally not interested in why you want to borrow a small sum of money. Payday loans can be taken out for any reason but generally, they are to meet unexpected financial demands.
Payday loans are commonly taken out to:
- Pay for repairs to your vehicle;
- Pay for repairs to a household appliance you cannot manage without;
- Pay off an unauthorised overdraft;
- Meet any other unforeseen financial outlay that cannot wait until your next payday.
Benefits of a Payday Loan
A payday loan generally offers between £100 and £500 so if you only need £100 this is the most suitable type to go for.
The loan is generally repaid on your next payday or it can be spread out for up to three months if needed. This gives you time to repay the loan out of three separate paychecks without struggling and finding yourself short of money on payday. Of course, you are going to have to pay more interest the longer you spread the loan out. The interest is calculated daily so the earlier you can repay the loan the less you are going to pay in interest.
Here are some of the main benefits of a small payday loan
- Applied For Entirely Online
One of the main benefits of a payday loan is that as you are borrowing a relatively small sum of money you can apply for the loan entirely online.
This means that you do not have to make an application to borrow and then have to hang around waiting for paperwork to come through the post to sign them and send them back.
- You Will Know If You Are Approved Within Minutes
As the entire loan application is undertaken online, you will know within minutes if you have been approved for a payday loan. This is essential if you have come across a financial crisis and need peace of mind that you can get a loan.
- Money Is Paid Out Quickly
Thanks to the loan application being made online and you know within minutes if you are approved you can go ahead there and then and sign up for the loan. Once this is done, the money may be deposited into your bank account within hours.
- We Can Help You Search with Numerous Lenders
Finding a lender to offer you a loan if you have bad credit is not the easiest of things. However, if you opt to look for a payday loan with us we can help you to search with numerous lenders and you only have to make a single application. As we work with a panel of UK lenders, there is more chance of you being matched with a lender.
Check Your Eligibility Online
Before going ahead and applying for a payday loan, you have to be eligible. All lenders will have certain criteria that you have to meet when borrowing and this generally includes:
- You have a regular income;
- You are 18 or over;
- You have a UK bank account in your name;
- A debit card is attached to the bank account;
- Direct debits can be created on the bank account.
If you meet the criteria above, you can apply for your loan. To do this you need to provide your personal information and we can then go ahead and make a search with the panel of lenders we work with to find you a lender. This means that to search with numerous lenders for a loan you only have to give your details once.
If we are able to match you up with a lender, you can check out the details of the loan, including how much interest you will pay, the total amount of the loan and the dates you have agreed to repay the loan. Once the loan is completed, the money may be paid into your bank within hours.
While we cannot guarantee a 100 loan no credit check, we can offer you an easy way to apply for a loan and search with a panel of UK lenders, all from one single application.