Avoiding a credit check is the first thing that people with bad credit want to do when seeking a loan. After all, who is going to offer them a loan once they find out about their poor credit history? Secondly, many people want to avoid guarantor loans as it means involving someone else. However, is there such a thing as bad credit loans no guarantor no credit check in the UK?
Let’s Break This Down
So let us break this down and take one thing at a time. Let’s look at:
- Options for bad credit loans;
- Do lenders always check your credit score?
- Can you get bad credit loans without a guarantor?
What Are The Options For Loans For Bad Credit?
Let’s first look into the options available for loans for bad credit that do not need a guarantor.
If you have a poor credit rating and do not want a guarantor loan there are some choices you might consider. The most suitable type of loan to apply for will depend on your personal circumstances, including the ability to repay, how much you want to borrow and when you can repay the loan. Loans to consider that do not need a guarantor include:
- Payday loans;
- Short term loans;
- Personal loans.
Payday loans are perhaps one of the easiest loans to find approval for if you have a bad credit rating. The amount of money offered is in the region of £100 to £500 with the loan repaid between one and three months.
Payday loans used to be offered over one month. Providing enough money to get the borrower through a financial emergency then the loan is recovered, including interest, on the borrowers next payday. Today, lenders are willing to extend payday loans over up to three paydays to make the loan more affordable, but more interest is paid back.
People apply for payday loans generally to cover an unexpected outlay that comes up. For instance:
- To pay off a final demand bill;
- Money has run short in the bank and you are looking into going into overdraft;
- An appliance you cannot manage without has broken down and needs repairing;
- Your car breaks down and needs repairing;
- You forgot the cars MOT was due and now you don’t have the money to pay for it.
In any of the above situations payday might be some time away. Not being able to pay off bills or repair your vehicle could make life very difficult. More so if the electric company is threatening to cut your electricity off or you cannot use your vehicle and you need to get to work and back. With a payday loan, you could have the money paid into your bank account fast and get your life back on track.
Short Term Borrowing
Short term loans are another option to consider with the loan typically offering £500 to £1,000.
The short-term loan is repaid in the short term, generally no longer than over a 12-month period.
Personal loans are somewhat more difficult to get approval for but by no means impossible. It is harder to be approved for a personal loan due to lenders offering larger sums of money.
Usually, lenders will provide personal loans for up to £5,000 and they may allow you to spread the repayments for up to 36 months. A personal loan does not need a guarantor but when borrowing larger amounts of money the lender may look deeper into your credit rating than if you were applying for a payday or short-term loan.
Will the Lender Make A Credit Check?
Now onto the question of avoiding credit checks. All lenders in the UK are required to look into your credit rating. The difference with payday and short term loans is that lenders do not care too much about what happened in your past. Generally, lenders are more concerned about the present. They care about whether you can afford the loan.
They may make a soft credit check but then look into your current circumstances and find out how much money you have coming in each month and what you pay out. Even if you have a poor credit rating but you clearly show you have enough disposable income after paying off other bills, the lender is going to consider you for a small loan.
So Is There Such A Thing, As Bad Credit Loans No Guarantor No Credit Check?
Yes and no. There are such things as bad credit loans that do not need a guarantor but lenders in the UK are going to take a quick look at your credit file. This means that bad credit loans no guarantor no credit check are often misleading. No lender will offer a loan without at least making a soft credit check, but this should not deter you from applying for a small loan.
It is also a good idea to bear in mind that there is no actual loan with the title of a bad credit loan. This is just a name that relates to loans that people with poor credit stand more of a chance of being approved for, i.e. loans offering a small amount of cash, such as a payday or short-term loan.
You can apply for a short-term loan or payday loan on your own, without the need to ask someone to be a guarantor. This means you are not involving anyone else in your finances and you are not risking any ill feelings among friends or relatives who would rather not stand as a guarantor and risk their credit rating.
Looking for bad credit loans no guarantor no credit check can be confusing. There are options for loans that do not require a guarantor even if you have a poor credit rating, but lenders will perform at least a soft credit check. We can help you to find a suitable loan for your needs, even with a poor credit rating, as our lenders will consider your circumstances more than your credit past. Apply with us today to get access to numerous lenders offering competitive rates.