What is meant by short term loans with no credit check in UK?

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Sometimes in spite of the best planning and intentions you may end up with a bad credit score. Often people are careless with debts or even if they are not circumstances may be such that they may miss a few instalment payments of loans. Even if utility bills are not paid on time you can end up with a bad credit score.

A bad credit score will have a negative impact on every area of life. Most prospective employers check your credit score when you apply for a job and they consider a bad credit score to mean that you are not a responsible person. Even landlords check your credit score before providing you a house on rent. This is the reason that if you have a bad credit score you may find it difficult to get a good job or a decent place to stay.

The area most affected by a bad credit score is your ability to get a loan. Almost all traditional banks and lenders will refuse to give you a loan if you have a bad credit score. There are some lenders who advertise short term loans no credit check UK. However, you need to double check on these because they could very well be loan sharks.

Loans without credit check

It is not possible to get a loan without a credit check in the UK due to the regulations and guidelines of the Financial control authority. A decade or so ago there were many delinquent loan accounts and many people had to file for bankruptcy because they took up too much of debt. This in turn adversely affected the economy of the UK and in order to prevent this from happening in the future the government decreed that it is mandatory to conduct a credit check of a loan applicant before approving a loan.

This is the reason that most of the companies that advertise loans without credit check are actually loan sharks or unscrupulous elements out to fleece the unwary borrower. Of course there are the legitimate lending companies as well that put out similar advertisements, but their intent is quite different.

When legitimate lenders advertise loans without credit check, what they mean is that they will go soft on the credit check. Instead of considering your credit history as the sole criterion for approving a loan they will take other factors into consideration. These factors include your monthly income and expenditure, the stability of your job etc. As long as they are convinced that you will be able to repay the loan on time they will provide you a loan even if you have bad credit. 

What if you have no guarantor?

Usually when you have bad credit, lenders will ask you to provide a guarantor for the loan. A guarantor is a person who agrees to repay the loan in case you are unable to do so. Needless to say it is difficult to find such a person to vouch for you. Hence you may have to opt for the lenders who provide no guarantor loans no credit check. The best way to approach such specialist lenders is through a good loan broker.

Loan brokers are associated with many different lenders and they will be able to help you get the exact loan that you require even if you have a bad credit score.