If you have not use no credit check loans before then you
may have a lot of questions about them. It can be quite confusing too because
there are often restrictions on various loan and you may wonder whether there
might be restrictions on this type of loan as well. It is well worth finding
out because you never know when you might need to use this sort of loan and you
could even avoid using one because you do not understand how it works. It is
therefore good to get all of your questions answered so that you will know
whether it is a loan that you should consider when you are looking to borrow
So, what sort of people can use a no credit check loan? Well
it is actually easier to list the people that are not allowed to use them:
- Under 18’s– it is against the law to lend
- Non UK residents – you need to have
address ID to prove you are a UK resident to get these loans
- Non UK bank account holders – you will need a UK bank account
- People without bank accounts – you need a
bank account to get these loans. This is because you will need to repay using a
direct debit and so you will need an account where you can set this up.
- Those without a guarantor (in very specific
circumstances) – if you are opting for a guarantor then you will need
someone who has a good credit record and is a UK resident to be able to act for
Most lenders will have no other main restrictions, but this
will very and so you will need to check with the individual lenders to be sure.
This means that you might think that it is very easy to get one of these loans
and you would be right. However, it is sensible to ask yourself one more question
before you sign up to one.
You should ask yourself whether you can afford to repay the
loan. This is a wise question that you should always ask if you are getting any
sort of loan. This is because it could have a big impact on you. It is
therefore wise to start by finding out how much you will need to repay and
when. It could be that you will be expected to repay the loan in a lump sum
when you next get paid or you could be repaying in instalments over a series of
month. Either way, it is wise to then check your finances to see whether you
will be able to afford to make those repayments. You should look back at bank
statements so that you can check whether you think you would normally be able
to afford to make these repayments. It might ne necessary to think of ways that
you can adjust what you are spending and earning to make it easier to afford
them. You could do things like cutting
back on luxury items, comparing prices so you buy things for less, selling things
you no longer need or working more hours. If you fear that you will struggle
with this then you may feel that perhaps the loan is not a good idea for you.
So, almost anyone can use these types of loan. There will be
few restrictions but you will need to compare lenders to check. It can also be
wise to compare lenders on other things such as price. You may find that there
can be quite a difference between them and you could gain a lot if you find one
that is significantly cheaper. You may also be looking for good value for money.
It is good to think about what you are looking for in a loan and a lender so
that you can make sure that you are getting what you are looking for. You may
not be that sure but once you start comparing them you will get an idea of what
differences they might have and this should help you to decide.
It can take time to make these checks but it is worth it.
You want to make sure that when you apply for a loan you will get accepted.
This is because if you are turned down for a loan this will show upon your
credit report. Once any other lenders seed this they could b put off lending to
you even without checking why you were turned down. This could make borrowing
even harder. Therefore, you may want to protect yourself form this by checking
that you fit the lenders criteria before you apply for the loan. If you are not
sure, then contact them and they should be able to tell you. This will enable
you to avoid the situation where you are turned down.
If you need to make repairs on your home, particularly if
they are urgent, then this can be a worry for you financially. Unless you have
some savings to fall back on, you may need to look at borrowing the money that
you need. For some people this can be easier than others. If you have a poor
credit record then finding a loan can be much more difficult and you may need
to hunt harder to find one. You will probably need to choose between the
different types of no credit check loans.
You may wonder though, whether these loans will be suitable
for paying for home repairs. It could depend on a number of factors.
- Cost – the cost of the repairs might
determine whether these loans are suitable as well as which type of loan will
be the best for you. You will need to find out how much the repairs might cost
and then you will have a better idea of whether this type of loan will work. Normally
you can only borrow amounts up to £1000 without a guarantor so you will need to
consider whether these will be enough and if you will be able to find a
guarantor if necessary. If you have not used a no credit check loan before then
you might be able to borrow more money. This is because some lenders will be
happy to lend higher amounts to some people as long as they have borrowed form
them before and repaid the loan as expected. Of course, if you were unable to
repay the loan then this could work against you.
- Repayment amount– if you manage to find a
loan that will allow you to borrow the amount of money that you need, you will
still need to do some other checks. You will firstly need to be aware of how
much you will need to repay. This is critical because it will allow you to know
whether you will be able to afford it. It can be so easy to focus on getting
the money that you need and not think about anything else but it is so
important to make sure that you are able to repay the loan. You may need to
have a through check on your finances to make sure that you will be able to do
- Repayment term– you also need to think
about how often you need to make repayments. If you just make one, then it will
be important to think about whether you will have the money available at that
time to make that payment and cover the other costs that you might have. If you
have multiple payments then you will need to check this over a series of
months. It is really important to think about, not only your normally monthly
outgoings but also any months when you might have extra expenses. Also think
about your income as well and whether there might be any reasons that it might
be lower at certain times.
You might worry about doing these checks as you might thing
that you could find that you have no options. But actually, you will be
surprised at how many options you do have available and if you look at a
selection of lenders you are more likely to be able to find one that will offer
a loan that will fit your requirements.
You might be tempted to skip doing this because you fear it
will take too much time. It is well worth it though because you will be able to
compare the different borrowing options that you have. You have a much better
chance of finding a really suitable lender that fits in with your requirements.
You also have a good chance of finding a good price and repayments the suit you
as well. You will not have to spend too long making these comparisons and the
advantages can be huge. You could end up saving a significant amount of money.
Not only will there be a chance to save on the cost of the loan but you may also
be able to save money because you will find it easier to make the necessary
repayments. If you miss a repayment you will end up paying extra fees so if you
can avoid this then the loan will not get more expensive.
There are also other differences between lenders, such as
how good their customer service is, how flexible they are, what their
reputation is like and things like this. It is good to think about these things
as well because they can have an impact on your borrowing experience too.
Taking the time to do these things can make a huge difference to how
pleasurable your borrowing experience is.