If you are looking for payday loans without credit checks, this is unfortunately not something that is available in the UK from a reputable lender. As per FCA regulation, lenders must carry out sufficient checks to determine that a customer is eligible and able to repay their loan without falling into arrears.
However, at Payday Loans Hub, we are proud to offer a way to apply for a loan and maximise your chances of acceptance. We work with a number of companies in the UK who offer competitive rates for payday loans and will take a view on all circumstances including bad credit, poor credit and recent CCJs.
To see if you are eligible, simply click on ‘apply now’ where you will be taken to our online application form and asked to complete your details. Our application takes less than 5 minutes to complete and can be filled in on desktop, mobile and tablet and provide you with a decision in seconds letting you know if you have been provisionally accepted or not. Subject to some further checks, our featured lenders are able to transfer funds to your debit account successfully within 1 hour.
Why Would You Want a Payday Loan No Credit Check?
There are certain borrowers who may be looking for no credit check payday loans because they fear that credit checking may limit their chances of approval. With credit checks a vital part to most loan applications for loans, credit cards, car loans, mortgages and more – those with a history of arrears or defaults may be at risk of being declined.
The customer may still wish to borrow a payday loan for an emergency expense, such as a car repair, monthly rent, credit card bill, plumbing emergency or medical bill.
Lenders use credit scoring to determine whether a person is eligible for a loan. Payday lenders in the UK will access information using one of the three main credit reference agencies: CallCredit, Equifax and Experian.
So when a customer applies for a payday loan, the lender will pay a small fee to a credit reference agency to access the individual’s credit file. This will provide a score and an indication of how well they have paid other types of cards and loans in the past and if they have any other applications, loans or default outstanding. This information is key to determine whether a person is suited to their loan product, and if so, how much they can afford to borrow.
How Can You Get Payday Loans Without Credit Checks?
If you are looking for payday loans with no credit checking, there might be some ways to obtain this or at least some viable alternatives in the UK.
Repeat customers: If you have recently repaid your loan successfully with a payday lender and wish to borrow money again, the lender may offer you another loan and possible without credit checking. However, the lender does not have to ensure that your financial position is not getting worse, otherwise this is not responsible lending. Similarly, the lender may have had to run credit checks on you in the first place to fund your first loan – so one is not really avoiding them.
Borrowing from family and friends: If a payday loan is designed to help tide you over until the end of the month, one suitable option is to borrow from people you know and trust: your family and friends. Typically, your nearest and dearest just want to help you out and do not worry about things like credit scoring, interest repayments and default fees. If you have a good relationship with those around you, you can potentially borrow money and without any interest payments too.
Secured loans: If your application is not successful, Payday Loans Hub may offer you some alternative products and this includes secured loans. This is where you borrow against a value asset such as your car, bike or jewellery. Since your loan is secured against this valuable item, you can borrow a lot depending on how much it is worth. The important thing to note is that if you cannot repay your loan, the lender has a right to repossess the item in order to recover the amount they lent out to you.
Guarantor loans: This is another alternative product whereby your application is backed up by another person who has a good credit score. Therefore, lenders will consider those with a history of CCJs, bad credit and defaults, provided that someone with good employment and credit history is willing to co-sign your loan agreement and pay off your debts if you cannot.
What Other Checks Are Carried Out?
Other checks carried out by lenders, other than credit scoring, is affordability checks. This aims to match the amount you have asked to borrow such as £200 or £500 and compare it to the amount that you can afford to repay. The lender will then calculate your monthly income and expenses against the amount you requested to borrow.
To do this, payday lenders may request proof of income such as a payslip or bank statement – and you may need to send this by email or text it to them by phone.
Good quality affordability checks means that you are able to borrow a suitable amount or the amount you asked for is adjusted to better suit your affordability.
How Can Your Improve Your Credit Rating?
Payday Loans Hub explains that there are some simple ways to improve your credit score short term and some other things you can do to improve it long-term. The best thing about a credit score is that it is never permanent and can always do up or down and improve.
On the most basic things you can do is join the electoral roll. This not only registers you to vote in upcoming elections but it confirms your name, age and residence with the local authorities and this is something that is monitored on your credit file. This is a positive connection to make for a prospective lender viewing your loan – as it is good to see that your name and age can be confirmed with a UK address.
Another simple thing to do is close any credit cards or store cards that you do not use. Whilst this might seem harmless, you actually have access to a lot of potential credit which you may not be using, but lenders consider that you could use this at any time and put you into financial debt. So for any cards that you have not used in years or only have a small amount of them, it could be worth closing them.
It is also recommended to remove yourself from any joint accounts with other people who have bad credit. Whether it is a joint savings account, car loan or mortgage, if you have a spouse or family member who has a poor credit rating, it is assumed that you will help them out and can be considered a risk prospect by association. Therefore, it could be worth closing any joint accounts and creating single ones for yourself.
Long term, the best things you can do for your credit score is get into a habit of repaying all credit card debts and loan repayments on time every month. If you are struggling to do this at the moment, consider organising all your payments and speak to each creditor for a more flexible repayment option if possible. If this does not work, you can also consider speaking to a debt charity or professional who can help consolidate your debts or arrange a more affordable repayment plan to help get your credit score back on track.