A no credit check loan is a form of borrowing, where the lender does not complete a hard check of your credit file. However, all lenders which are authorised and regulated by The Financial Conduct Authority (FCA) are legally required to complete a credit check. This means it is actually very difficult to find a loan where no credit check is completed, unless an application is made to an unregulated lender.

What are no credit check loans?

If a lender offers loans without a credit check, they will need to reach their loan decision based on the information and evidence you provide. This may not provide a full picture of your finances, so some lenders will conduct a soft search of your credit file to verify your information, which doesn’t leave a footprint on your report.

Although, you will be able to see the search it will not be visible to others. This protects your credit report from the negative impact of a hard credit check. Although these types of loans may be advertised as having no credit check, if the lender is regulated and you decide to accept the loan offer, they will need to complete a formal hard credit check before the loan is issued.

What’s the easiest loan to get with bad credit?

Here in the UK, the short-term loan market has become much stricter in recent years. In the past those with a poor credit history could apply for payday loans, which charge high-interest rates in exchange for loans without the stringent checks of traditional banks and building societies. These payday loans would often need to be repaid in full on the borrowers next payday, which often led to repeat borrowing and ongoing financial difficulties.

Today the regulatory environment surrounding short term loans is much stricter, with limits placed on interest rates, default fees and the number of times loans can be re-financed. Thanks to the new rules which have been enforced by the FCA, the loans market is more transparent today.

Every lender which is authorised and regulated by the FCA will need to treat you fairly and follow strict rules relating to responsible lending. Although a bad credit history could make it difficult to borrow a traditional loan from a high street bank, there are many lenders who are willing to lend to those with a less than perfect credit history.

As regulated lenders they will still complete a hard credit check and the results will be important, however they will also be looking at your individual situation when they decide whether to lend to you. If the loan you are looking to borrow is affordable and it has been a while since you missed any payments, it may be easier to obtain than a large loan with a long history of many recent missed payments. 

What is a credit check?

A credit check involves a third party accessing your credit file via a credit reference agency to analyse your financial information. Your credit report includes details of your financial history, outstanding balances and your ability to make payments on time. Each of the credit reference agencies will assign a personal credit score to you, with a lower score representing a higher risk to a lender.

If a lender completes a credit check, they will use the information in your credit report to decide the risk level associated with your loan. They could choose to reject your loan completely or lend to you with an interest rate reflective of your credit report. Those with a good credit history will be offered the lowest interest rates, as they represent the lowest risk to the lender. 

There are two types of credit checks which can be completed, a soft search and a hard search. A soft search of your credit file provides a quick surface overview of your credit history, without impacting your credit score.

When a lender conducts a hard search of your credit file, they are able to view everything included in your credit report. They will be reviewing your current debt balances, checking to see if there are any missed payments and analysing your current level of debt. When a hard check is carried out the footprint stays on your file for 12 months and is visible to every company who later accesses your report.

What is an affordability checker?

The FCA require all lenders to conduct a rigorous affordability assessment, before approving a loan. As a borrower this protects you from borrowing unaffordable loans, which could lead to spiralling debt and a poor credit history. If a loan is offered without a credit check, it is unlikely the lender will conduct the same checks expected by the FCA and you will not be safeguarded from poor borrowing decisions. 

If you decide to borrow from an unregulated lender, you will have no legal protection if any issues arise with the loan. It also means that if you need to make a complaint at any point, the Financial Ombudsman Service will not be able to assist.

;How to get a loan with no credit check

In truth, if you are looking to borrow from a trustworthy lender, there is no such thing as a loan without a credit check. Any company which is willing to lend to you without a formal credit check will be breaking the rules set by the FCA and is likely to offering loans illegally.

Although there are some companies which advertise loans without a credit check, any reputable lender will need to at least perform a soft search of your credit report. The lender will only be willing to approve your loan if they are satisfied that you are likely to make the repayments and the only way to do this is to complete a credit check.

If you need a loan but are worried about your chances of approval, think about whether the loan is absolutely necessary, as you may decide that you do not need to actually borrow the funds. Are there other ways to find the cash, such as extra hours at work, dipping into savings or borrowing from a close friend of family member? 

The benefits of using a broker

If you decide that taking out a loan is necessary, it is wise to use a broker, such as our services here at CashFlex. Instead of searching the market for a lender willing to offer loans at competitive prices, a broker brings everything into one place. There is only one application form to complete and your details are then shared with a panel of authorised and regulated lenders.

The lenders will only conduct a soft credit check when you complete the initial application, which they use to indicate whether they are likely to accept your application. This means you do not need to make multiple applications to various lenders and undergo several hard credit checks of your file.

If a lender indicates that there is a strong chance your application will be approved, you will be redirected to their website where a single hard credit check will be completed. This ensures only a single loan application is recorded on your credit file, in comparison to multiple footprints left by several loan applications. 

Apply for a CashFlex loan today

Here at CashFlex we are a loan broker with access to up to 40 lenders, which are authorised and regulated by the Financial Conduct Authority. If you have a poor credit history and are concerned about your chances of being approved for a loan, we can help. Our innovative FastCheck tool will ask a few key questions to instantly calculate your chances of being approved, without a credit check.

If the tool indicates that you are likely to be accepted, we can help you find loans from as little as £100 up to a maximum loan of £5,000. The loans are available with flexible terms, designed to offer you affordable instalments and the chance to improve your credit rating by making loan payments on time. For example, loans of less than £1,000 are offered with repayment lengths of 3, 6 or 12 months. 

As with all regulated loans you will need to undergo a credit check and an affordability assessment. The credit check will leave a footprint on your file; however, we match you to a lender which has already indicated a strong chance of approval. Although you may be eligible for a loan, it is important to consider the impact on your finances before signing the loan agreement. 

If you would like to discuss your financial situation in more detail, there are a variety of impartial organisations which offer free advice, including The Money Advice Service, Step Change, PayPlan, National Debtline, the Debt Advice Foundation and Citizens Advice.

Why choose us

Sometimes, the unexpected happens that means you need money fast. Here at Cashflex we offer a user friendly process to help you find same day loans in a responsible and affordable way.

How much can I borrow?

The exact amount you can borrow depends on your personal circumstances and can differ by lender. You can apply for a loan between £100 and £5,000

What are the repayment terms?

This is dependent on the amount that you wish to borrow. The repayment terms can be: 3 months, 6 months and 12 months to name a few, ranging right up to 36 months.

Can I apply for a loan with bad credit?

Yes. If you are unsure you can use our FastCheck tool to find out your loan eligibility.

Can I repay in instalments?

Yes.

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Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative.

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