Know the Truth behind No Credit Check Loans for Bad Credit

WARNING: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK.

Confusion, rejection and more confusion are the common parts of borrowing bad credit loans online. If you too are struggling to locate low interest rate loans with no credit check or guarantor, it’s time to think over. 

Why credit check is not bad?

The Financial Conduct Authority (FCA) is a financial watchdog in the UK. All lenders and brokers are liable to get registered by FCA and adhere to their regulations before offering their deals to the borrowers. According to the FCA a loan provider must imitate a credit check before extending a loan. Any lender that offers you no credit check loans could be an illegal company.

A credit check helps lender know about your repayment capacity and thus ensures loans to people who can actually afford them. Also being a borrower you could be more confident of repaying your loans when you borrow following a credit check.

Thus rather than searching for no credit check loans with no guarantors, you must contact brokers who help bad credit borrowers find unsecured loans without guarantor. They work with lenders who approve loans for borrowers with low credit rating. 

Rather than initiating hard credit checks, these loan providers usually make a soft check and thus do not make footprint in your credit report. You also get choice to compare the loans and choose the most affordable deal according to your repayment capacity. This provides you ease of repayment and thus helps you manage loan wisely.