We will start right off, be honest, and tell you that when you apply for any type of loan you will have to undergo a credit check. The second thing we want to get out there is that there are no loans specifically called bad credit loans by name. Therefore, you cannot apply for bad credit loans no guarantor no credit check. However, we may be able to help you to find an affordable loan with a large panel of lenders, all of whom will consider your income and present circumstances.
Now that we have that out of the way let us go on to talk about the options open to you if you have a bad credit rating and need a loan.
Certain Types of Loans May Be Easier To Get
While there are no such loans called bad credit loans, some loans may be easier to get approval for with a bad credit rating. Loans that are often applied for with success by people with poor credit ratings include:
- Payday loans;
- Short-term loans;
- Guarantor loans.
We have included guarantor loans even though they are not the most popular choice of loan. For some people, those who want to borrow a larger sum of money, up to £5,000, a guarantor loan may be suitable. For many, they are not as you do need to find someone willing to stand as a guarantor.
If you are adamant you want to look for bad credit loans no guarantor no credit check, and you only need a small loan you can consider the payday or short-term loans. Neither of these loans will need you to ask someone to stand as a guarantor.
One of the benefits of small loans is that lenders generally do not look too deep into your credit history, but they will look.
Lenders We Work With Consider Verifiable Income Not Just Credit Ratings
Being a broker, we work alongside a large panel of lenders in the UK who will consider your credit rating, but at the same time consider verifiable income and your ability to repay the loan.
If you only want to borrow a small sum of money, lenders are not going to be too interested in how you managed money in the past. They are going to be more interested in whether you can afford to repay the loan.
There are some criteria to be met before you can apply for a loan in the UK, so make sure that the following applies:
- You must have a regular income and lenders will verify it;
- You need to be at least 18 years of age;
- You have to be a resident of the United Kingdom;
- You should have a bank account in your name in the UK;
- Hold a debit card on the bank account in your name;
- The bank account should be able to accept direct debits to repay the loan.
When lenders talk about a regular income, income from paid work or some types of benefits that are paid on a monthly basis are considered as an income by most lenders.
Why a Payday Loan Might Be Suitable
Payday loans earned themselves something of a bad name in the past but the loans themselves were not to blame. It was unscrupulous lenders offering to them and rolling them over when people could not afford to repay them.
Providing you know you can repay the loan as agreed, it can work to your advantage in the way it is designed to work. A small loan offering quick funds to get you out of a sticky financial situation and you repay the loan within a short time frame.
In some cases, such as applying for a loan to cover an unexpected overdraft, a payday loan could save you money. Unauthorised overdraft fees can be very expensive, with some charging up to £80, much more than the small amount of interest paid on a 30-day loan.
In cases such as this, you could borrow money with a payday loan, clear the unauthorised overdraft and repay the loan on your next payday and save money in high fees.
Of course, this is just one example where a payday loan can work as intended and save you stress and money in the end. Other examples include using funds from a loan to cover an unexpected final demand bill, pay for repairs to a vehicle or household appliance you cannot manage without or to pay for emergency home repairs such as a water leak.
How Much Can I Borrow with Payday Bad Credit Loans No Guarantor No Credit Check?
Lenders offering payday loans to people with poor credit ratings may offer in the region of £100 to £500.
This is generally more than enough to cover any financial emergency that crops up. As far as repaying the loan, you could pay the entire loan off including interest for the 30 days on your next payday or you might want a bit more financial freedom and pay the loan off in equal instalments over three months.
As expected, the loan is going to cost more over a period of three months and you do have to take into account that interest will be added on daily. Therefore, to keep loan costs down to the minimum keep the loan as short as possible.
When applying to borrow a small sum the lender is not going to focus too much on your credit rating and credit score but they will make a brief check. Loan affordability is going to play a big part in whether you are accepted for a loan. Lenders will want to know how much money you are paid each month and what you pay out, so they can determine if the loan is affordable. Of course, they will also need to verify your income.
Short-term No Guarantor Loans
Short-term bad credit loans no credit check may be possible if you need to borrow up to £1,000.
Again, affordability is going to factor into whether or not you can get a loan and lenders will make a brief check of your credit file. How much you might be able to borrow is going to depend on your income.
With short-term loans, there is more flexibility in repayments. This is not a long-term loan but lenders usually allow you to spread the repayments for up to 12 months.
As interest is going to be added onto the loan, the lower the APR, the less the loan is going to cost in total. While it might be tempting to try to spread the loan out for 12 months, you can save money the quicker you repay it, as you will not pay as much in interest.
When comparing short-term loans you should also take into account whether the APR on the loan is flexible or fixed. If the APR is fixed, the amount of interest will not change over the term of the loan. This means you know exactly how much the monthly repayment is. However, if the loan has a variable rate of interest your monthly repayment may go up or down over the term of the loan depending if the Bank of England base rate goes up or down. This means you might end up paying more each month or less, depending on how it fluctuates.
Another thing to look for with loans is whether you have the option to pay off the loan early if you find yourself in a position to do so. Some loans have a fee attached that you would have to factor in, in the event you were able to repay the loan in full.
Fast Online Application for Loans
Once you have decided which type of loan to apply for you can apply online and the whole loan process can be undertaken online.
The advantage of this is that you get an instant decision and if approved you get your hands on money fast. Funds from the loan are paid directly into your bank account, often on the same day and sometimes within hours of your application.
To start your loan application gives us with your personal details and we will search with a large panel of lenders. This means that from one single search you can gain access to numerous lenders and do not have to make multiple searches yourself.
If we match you up with a lender you can go ahead and check the details of the loan and if you are happy to go ahead with the loan, sign up and money is paid into your account.
The panel of lenders we work alongside offer numerous loan options. They also offer affordable loans with some of the lowest interest rates and will consider verifiable income, not just your credit past.
Whether you are looking for payday bad credit loans no guarantor no credit check or a short-term loan, we can help bridge the gap between you and the lender.