Many lenders in the UK are willing to lend payday loans with a soft credit check to anyone as long as they have a regular income or are employed. However, they may come with higher interest rates, especially for people with bad credit. And yes, you don’t need a stellar credit score to access payday loans with a soft credit check. Note that “No credit check” means soft credit checks, as there is nothing like “no credit check loans.” All lenders must perform some type of credit check on borrowers to grant loans.
To get started for payday loans with soft credit checks, consider using a reputable credit broker to connect with a lender. Credit brokers, such as PaydayLoansUK, have many years of service in this industry, and they can connect you with a certified network of professionals for such loans. You don’t have to look from one lender to another, as they will link you with one of the multiple lenders in one simple form. This handy article explains how you can connect with a lender for a short term bad credit loan through PaydayLoansUK.
Types of Payday Loans Without Credit Checks
Depending on your needs, there are various payday loans with soft credit checks that you can access, such as:
Bad Credit Payday Loans
You can still access a bad credit payday loan when you have a terrible credit score because these online bad credit loans are meant for people without a good credit score. However, the trade-off here is that you get them at higher interest rates than usual because when you have a bad credit score, lenders consider you a high-risk borrower hence the higher charges.
They can be secured, unsecured, or guarantor loans. Secured bad credit payday loans require you to put forward some form of collateral, such as your home or car. Such loans usually offer more favorable terms, rates, and higher loan limits. Unsecured loans don’t require any form of collateral; however, they tend to have extremely higher interest rates, including lower loan limits.
Guarantor loans require a cosigner or a second party to agree to pay off your loan in case you default on them. Similar to unsecured loans, guarantor loans also have high-interest rates.
Instant Payday Loans
These loans are available as fast as 15 minutes after application. They are suitable for borrowers with emergencies as the time required to process applications and access payments can be as instant as 5 minutes.
They are usually shorter loan amounts that don’t exceed £1000, and the interest rates tend to be higher than traditional loans.
Same Day Payday Loans
Similar to their name, these loans are processed and approved as soon as the same day of request. Unlike instant payday loans, they have slightly lower interest rates and higher limits because they aren’t as urgent as them. They are unsecured loans that don’t require any form of collateral to access.
They also do not perform hard credit checks. Most UK lenders are willing to give you same day loans even with bad credit as long as you can prove that you can pay the loan in time and meet their eligibility conditions.
Qualifications for Short Term Loans for Bad Credit
The qualifications for a payday loan generally depend on the lender you intend to access the loan from. However, they are always available to various customers provided that they are the following:
- They are employed and have a monthly income of at least £ 750
- They are a resident of the UK
- They have a bank account
- They are at least 18 years of age
You should be able to qualify for a short term loan for bad credit unless you have spectacularly poor credit or are in a lot of debt. However, before you pick a loan, ensure that you can repay the loan, including the interest you’ll incur over the loan term.
What to Consider Before taking Short Term Loans for Bad Credit
Planning yourself before taking a loan allows you to manage it well, including its repayment. And as part of planning, you have to consider factors such as:
Interest Rates
Before signing for a loan, determine how much interest rates the lender is willing to offer. Ideally, you may want an offer with the lowest interest rates possible, as this will lower the amount you should pay monthly for quick repayments. Usually, secured short term loans for bad credit have the lowest interest rates compared to unsecured ones.
Payment Plan
Planning how you will repay the loan before taking it allows you to avoid defaulting, which can have grave consequences like the involvement of legal action. Consider the length of the poor credit loan, including how soon you can pay off the entire loan.
Determine how Much Money You Really Need
Don’t be enticed to acquire the most extreme sum you can apply for, even without a good reason. Remember that these are transient advances, and you should only use them for essential needs that can’t wait till your next payday. Going overboard with them can have you struggling more with more debts.
Ways to Get a Short Term Payday Loan with a Bad Credit
There are two main ways to access a short term payday loan even with bad credit. One is through a direct lender, and the other is through a credit broker.
Direct Lender
To get a short term loan with bad credit through a direct lender, you have to search through the internet and compare multiple lenders to find one. Before you request a loan through a direct lender, you have to understand that direct lenders are obligated by the Financial Conduct Authority to conduct a credit check. And applying with various lenders may mean multiple hard credit searches that can affect your credit score adversely.
Credit Brokers
Alternatively, you may submit your details for a short term loan for bad credit through a reputable credit broker. Requesting through credit brokers is pretty convenient as they connect you with a network of professional lenders who will loan you according to your information. You don’t have to go from one lender to another.
For example, by getting started through PaydayLoansUK, you are connected to a lender in three simple steps:
Submit Your Information
Fill in and submit the provided form, giving all the required personal and contact information.
Read More: Smart Tips to Build and Improve Your Credit Quickly
Get Lender Approval
After submitting your information, PaydayLoansUK will partner you with one of the several lenders in their network.
Lenders will review your information and if they find you eligible, they will approve your request and send you a quote containing the loan amount and terms and conditions of the loan.
Get Funds
Once you sign and agree on a loan, expect to access the funds as soon as the next business day.
