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 money.
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 to children
- 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 you.
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.