Fast Cash Loans with No Credit Check: Is It Possible?

A no credit check is a facility that suggests your credit report will not be perused to approbate your loan application. It is aimed at subprime borrowers whose credit scores are already worse and who cannot afford to lose more credit points. There are various lenders out there claiming to provide no credit check loans. Subprime borrowers put in loan applications without further ado to such lenders, but there are many things about them that you may not know at that time. It is likely that you regret your decision to borrow money through a no-credit-check facility down the line.

Do no credit check loans exist?

There is no gainsaying that it is challenging to qualify for a loan without a credit check. No registered and ethical lender could sign off on your loan application without checking your credit information. Only if they peruse your credit file would they be able to know crucial information like how much debt you currently owe, whether you paid off the debt in the past and the like.

It is crucial for a lender to collect this information from your credit report to gauge affordability. If they do not know how much you currently owe, they cannot determine how much money you could afford to borrow more. Without running a credit check, they would most likely end up lending you more than your affordability. As a result, you will fall into an abyss of debt.

Does that no credit check loans do not exist? No, it does not mean so. There are some loans that are available without any credit checks, but they are offered by a few lenders. You will have to research them. You can get this information from their websites, or you can directly contact them. Make sure you do not apply to a lender who runs a hard credit check because it will result in repudiation and a low credit score.

Such lenders make the lending decision based on your employment history and income. While researching for these lenders, you should look at reviews. They would help you make a better decision.

No credit check facility is usually for existing borrowers

Most of the lenders, including those who run hard checks to approbate your application, allow a no-credit check facility for their existing borrowers. If you had previously borrowed money from your lender and had paid off your obligation on time, you would be able to qualify for a loan without any further credit check. This is because your lender has all data about your payments. However, this is just a possibility.

It does not reveal information if you took out any other loan. For this, they would have to rely on financial details in the applications that you provide. Some lenders might give the benefit of the doubt, while others cannot. So, it depends on a lender’s perspective whether or not they will be able to lend money without any credit check.

No credit check facilities are available for small personal loans

Personal loans are not very small loans. The minimum borrowing amount is £5,000. These loans are repaid over a period of time. You will pay down the debt in fixed instalments. Since the amount is not too small, a lender cannot take on the risk of default. Therefore, they will carefully run a credit score check. However, there are some personal loans that do not involve credit checks at all. These are called fast cash loans with no credit checks.

These loans are very small. The maximum amount of money you can borrow is up to £1,000. However, most of the lenders will cap on £700. They will never lend you more money than your repaying capacity. These loans are aimed at meeting small, unexpected expenses such as a laptop repair or a car repair. Because the loan amount is so small, these loans do not check your credit rating. The loan amount will be approved based on your income details. It is always enjoined that you disclose true financial information so you do not end up borrowing more money than you can actually afford to pay back.

No credit check loans are not only available for meeting small emergencies, but they are also available for business needs. Normally, business loans are impossible to get approved without any credit checks. These loans involve a perusal of a business credit score, too. However, there are a few lenders who would be willing to provide you with a business loan with a no credit check. These small business loans come in handy when you need an instant injection of cash.

Ways to avail yourself of fast loans without credit checks

Here is how you can avail yourself of fast loans without any credit checks:

Check your eligibility

First off, you should check your eligibility. The basic criteria for all types of loans are the same. In addition, you should have a decent credit score. Because a lender is accepting applications with a poor credit score, it does not mean that they would approve your application with a very poor credit rating.

Every lender has their own criteria to approve an application. For instance, some lenders might not be disposed to accept an application with less than a 550 credit rating, while others might be willing to approve your application with a 500.

This is particularly suggested when you apply to a lender who runs soft checks. Soft inquiries do not leave search footprints, and hence, you do not see any drop in your credit score. Some lenders make soft inquiries, and yet they promote their financial products as no credit check loans. This is because soft checks cannot affect your credit rating.

Fill in the application accurately

While filling in the online application form, make sure that you provide your income details accurately. Remember that the decision will be based on your earnings. If you mention your income is higher than you actually earn, you hide the number of dependents on your income, or you do not reveal the true amount of debt you owe, you will end up borrowing more than your affordability.

No credit check loans come with very high interest rates. Even if you have had a good relationship with your lender, you cannot avoid high interest rates. You will put yourself at risk of falling into debt if you do not assess your needs and give accurate financial details.

Use an online calculator

You should use an online loan calculator to check how much it would cost you. A rule of thumb says that you should carefully determine the estimated cost of the debt. This will help you know whether your budget has the room to repay the debt. Actual rates will be higher than estimated rates because they involve fees and other charges.

The bottom line

Fast cash loans with no credit checks are possible because they consist of a small amount of money. However, these loans charge high interest rates. Make sure that you will be able to settle your dues on time while using these loans. But try to have a decent credit report because, for larger loans, you will need a credit check.