The quick answer to this is yes. All direct lenders are required by The Financial Conduct Authority to carry out a credit check on all loan applications. Therefore, no credit check payday loans don’t exist. As such, if you see a lender offering this, they are not telling you the truth, or they are not an officially-recognised lender. Remember, if you apply for a loan, lenders will check your credit score as part of the application. However, if you suffer from a bad credit score, this does mean your loan application will be turned down.
In the past, a bad credit rating would automatically put you at a disadvantage and would most likely ensure your loan application was not successful. However, many modern lenders are now changing how they rate a person’s suitability. People can find themselves with a bad credit rating for a variety of reasons. Because of this, many direct lenders are now changing how they rate a person’s application.
‘Soft Credit Match’ technology matches your profile with our industry-leading panel of Financial Conduct Authority (FCA) approved direct lenders without leaving any mark on your credit record.
Looking past traditional markers, lenders are now using more realistic indicators to assess a person’s ability to pay back a loan, such as current employment status. As a result of these changes in the industry, more people than ever before are now able to successfully apply for a payday loan regardless of their bad credit.
Will a credit check lower my credit score?
One problem when applying for payday loans in the UK in the past was how the process could negatively affect your credit score. If you applied for a loan and were turned down, your credit score could drop as a consequence. Resulting in a negative cycle where the more you asked for money, the more difficult it became actually to get it. This resulted in many people damaging their credit score and ultimately preventing them from even applying for loans they desperately needed.
When you initially apply for a payday loan, something called a soft search is performed. A soft search has no impact on your credit score. If you’re approved and agree to take out the loan, then lenders are required by the FCA (Financial Conduct Authority) to perform a hard (full) credit search. By this point, you’ve already been accepted based on a soft search, so it is much more likely that you’ll be issued a loan and it doesn’t create a problem.
How quickly will a payday loan be paid out?
The loan application process is designed to be quick. Lenders have streamlined it as much as possible for several reasons.
A payday loan is usually applied for when an unexpected expense has popped up, and you need the money quickly to cause the minimum amount of disruption. Another reason is also associated with this, as people that need cash quickly are more likely to look at a lender that offers quick cash. Some lenders are making claims of getting money into your account in a few minutes. However, the truth is that lenders don’t have control over your banks https://onedayloan.net/payday-loans-wa/ own systems or processes.Therefore, we say we will have the money in your account in 15 minutes* but does still depend on your bank’s policies and procedures.
I am struggling with my debts. What should I do?
If you are struggling with your debts and require assistance, you can speak to the companies below, free of charge.
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