If you have a poor credit rating and need a loan, you might be thinking of applying for no credit check loans instant decision. However, what are your chances of being approved for such a loan and do such loans even exist? We want to clarify these questions and talk about your options for a loan with a poor credit rating.
Don’t Believe Everything You See Online
The first thing you might be tempted to do when considering a loan for poor credit is open up your web browser and head to your favourite search engine and make a search. You might be pleasantly surprised to see the results that pop up on the first page of the search. You will be greeted with headlines such as:
- Bad credit loans everyone accepted;
- No credit check loan 97% approval;
- Long term loans no credit check;
- Instant decision loans without a credit check.
These are just a few of the headlines designed to entice you to the website offering the loan. Surely, with headlines such as these you are going to get a loan and be among the 97% approved. Well do not get your hopes up.
The chances are that if you were to click on the headline link you would have to fill in a long application, then undergo a credit check and find that not everyone is accepted and your application has been turned down.
We Believe in Honesty about No Credit Check Loans Instant Decision
Yes, we know, this is not what you want to hear when looking for a loan if your credit rating is less than perfect. However, we believe in being open and honest about your chances of approval for a loan and we will not get your hopes up with false promises.
We are not saying that you cannot get a loan if you have a poor credit rating. What we are saying is:
- Not everyone is accepted for a loan and there are many reasons why;
- Some form of credit check is always made when you apply for a loan;
- You can get an instant decision on a loan but not instant approval.
Why Do Lenders Make Credit Checks?
Lenders will want to make a credit check, however, whether they make a soft or hard check will depend on the amount of money you are asking to borrow.
A credit check is a way for the lender to get an idea as to how big a risk the loan is going to be if they approve it. In other words, the risk as to whether you will repay the loan without trouble.
When lenders check your credit rating, they will check to find out if you have missed any repayments or been late repaying. If you have CCJs, how much credit you have and how much of the credit you have you have spent. This information is used by the lender to make an informed decision and either approve or deny the loan.
Other Factors That Go Towards Approval or Denial
While lenders will make a credit check there are other factors that some lenders consider. We are not lenders; instead, we work alongside a panel of UK lenders to try to match you with lenders willing to offer no credit check loans instant decision to people with poor credit and who have done so in the past.
The lenders on the panel we work alongside will consider your credit rating but they will also consider current circumstances at the same time.
This takes into account the fact that while your credit rating may be poor lenders do realise that you might now be in a better position and you can afford to repay a loan if someone gives you a chance.
What Types of Loans Can People With Poor Credit Apply For?
People with poor credit ratings can essentially apply for any type of loan. However, some loans may be easier to be approved for than others may. A personal loan for instance is generally more difficult to be approved for as it involves larger sums of money repaid over a longer period.
Payday loans and short-term loans are usually easier to find approval for, as the sums of money borrowed are relatively small. Both of these loans can be a good place to start on the borrowing ladder.
Is A Payday Loan A Good Choice?
A payday loan might be a good choice of loan for anyone who needs to get hold of a small amount of money and who needs it quickly to use in the case of a financial emergency.
Payday loans come in handy to pay for bills that require paying before your next payday, to pay for unexpected repairs or to get out of an unauthorised overdraft. Of course, you can use the funds from a loan for just about anything.
You might be able to borrow between £100 and £500 but this is going to depend on your circumstances, affordability and the lender.
Payday loans can be repaid in full on the next payday or lenders will offer you the option to spread the repayments over three paydays. You will have to give the lender your pay dates as they will take the repayments back on those dates. If you repay the loan on your next payday, you pay the sum borrowed and interest for the 30 days on top in one sum. If you want to spread out the loan over three paydays the loan amount and interest for that period is calculated and split over three paydays. Lenders take a portion each payday until the loan is paid.
Is A Short-term Loan A Good Option?
A short-term loan could be an option if you find you need to borrow up to £1,000 and you want more time to repay the loan.
With short-term loans, lenders might offer you up to 12 months to repay the loan but of course, this is going to depend on the lender, your credit status and the amount you need to borrow.
While it might be tempting to spread a loan out over a long period of time you do have to consider the longer you take the loan out the more it is going to cost in total.
It is surprising how much you can save on a loan by cutting the length of repayments down by half. Of course, this is going to boost up the amount you repay each month so always ensure that the monthly repayments are going to be affordable.
When applying for your short-term no credit check loans instant decision offered check the APR. Usually the lower the annual percentage rate the less the loan is going to cost.