Your credit rating is one factor that go towards whether you get approved for a loan. In the UK, all lenders have to check your credit rating when you apply for a loan. So in essence, there is no such thing as no credit check loans instant decision. If you have a poor credit rating that is not to suggest you cannot a loan, far from it. It may be feasible to get a loan with an instant decision whatever the state of your credit rating, as there are different loans for different purposes.
Why a Credit Check Is So Important
Undertaking a credit check is very important to lenders as it is their way of finding out your history of borrowing. This is something the lender needs to know if you want to take out a loan of several hundred pounds and spread out the cost over years.
Your credit rating will tell the lender how much credit you currently have, if you missed any repayments; have CCJs against you and other things. If the lender sees you as being too big a risk, they will turn your application down. Some lenders are more lenient than others in regards to approving loans to those with a poor credit rating. For instance, we work with a panel of lenders who will consider your rating but who will also look at your current financial circumstances to determine whether a loan is affordable.
In short, a credit check is important to lenders as it gives them an indication of how likely you are to repay the loan.
Is It Possible To Get Loans with an Instant Decision
While it is not feasible to get a loan without a credit check, you can get a loan that comes with an instant decision.
Loan applications have become so much easier during the last decade. Today the entire loan application process can be undertaken online. Without the need for banks or lenders to send out paperwork for you to sign and send back, loans can be approved within minutes. A fast approval loan is imperative if you need to get hold of money in an emergency, and payday loans are ideal for this scenario. Even personal loans and short-term loans can come with an instant decision.
Loans with Fast Pay Out
Depending on the type of loan, the amount requested and other factors, it may prove possible to have money from a loan paid into the bank on the same or next day. Again if you need to put your hands on money quickly this is a huge bonus. One of the loans generally paid out on the same day is the payday loan.
Loans that often come with instant approval and fast payout include:
- Payday loans;
- Short-term loan;
- Guarantor loan;
- Personal loan.
Applying for No Credit Check Loans Instant Decision
As mentioned above all UK lenders have to check your credit rating by law. However, there are two types of searches. Lenders can make a detailed credit check or undertake what is called a soft credit check. With the latter, the lender does not put too much emphasis on what happened in the past and your credit rating. Instead, they factor in your current situation. This means you may be approved if:
- The lender thinks you have the ability to repay the loan;
- You have disposable income from either a job or benefits;
- You have made changes to improve your past, such as paying off debts;
- You are at least 18 years old;
- You have a regular income;
- You hold a bank account in the UK where an income is paid in each month;
- You have a debit card;
- A direct debit can be created on the bank account.
Here at Bonsai Finance, we work with a panel of lenders who do take both your current circumstances into account and your credit rating. The lenders we work with offer numerous loan options and affordable loans with competitive rates. Three of the loans that come with fast approval and payout include the payday loan, short-term loan and the personal loan.
Apply for a Payday Loan
The payday loan is one type of loan that comes with an instant decision, and which lenders are not too strict with in regards to your credit past. This is because you are asking to borrow a small sum of money, usually between £100 and £500 and you repay it over one to three paydays. If approved for this type of loan money may be deposited in the bank the same or next day.
This type of loan may be suitable in an emergency where you need to get hold of money fast. For instance to pay a bill you had forgotten about, to repair the cooker or buy a new tire for your car.
Short Term Loans
Short term loans are another type of loan that comes with a fast decision and pay out. It is likely that lenders may allow you to borrow in the region of £500 to £1,000 with a short-term loan and spread the repayments for up to a year. This is going to be dependent on the lender, of course, some may offer more and some less and some may allow you to spread the repayments over longer.
A Personal Loan
A personal loan may enable you to borrow up to £5,000 and spread the repayments for up to 36 months. Again, the personal loan comes with fast approval and fast pay out into your bank account.
The type of loan most suitable for you is going to depend on what you want the money for and how much you want to borrow. The payday loan or small loan is one of the most suitable for people with poor credit history as it involves just small sums of money paid back quickly.
You may be unable to get no credit check loans instant decision, but with our help, you can get access to a panel of lenders who take your current circumstances into account alongside your credit rating.