lenders with 'no credit check' claims

zeds

Hi all,

I appreciate that ideally, we should all be using 'responsible lenders', and that they will check people's credit files at the credit reference agencies (cra's) before loaning money to someone.

However, with the lenders who say they don't check your credit files, what I wonder is, if we can trust that they don't do this?

In my case, I am looking at using one of these (payday) lenders who don't look at your credit files, for a short-term amount. This is because, a) while the cost of the loan will be high, I need the money; and b) I know I will be able to repay the money on time (so I won't incur extra charges from missing the repayment point). However, if they put a footprint on my credit file, either from checking my records, or, from filing details of my repayment/s, then this will damage my position unnecessarily for the longer term, as these details will stay on my credit file for ages (and without such details on my file, I should in time be eligible for far better loans/card offers in the future). Can I trust these lenders' word about not checking credit files?

The lender is Bee Loans incidentally.

Finally: who do they check your details with if not at the credit reference agencies (they make some kind of check with someone, I know because I sounded them out but they wouldn't say exactly what they did!!!)? And, can that check they do, rebound on you when it comes to applying for credit in the future (as a result of being visible to the better lenders)?

I'd appreciate your input - many thanks!

Zeds

Tixy

Bee loans are a loan broker. They do not lend money, they will pass your details on to other payday lenders.

Those potential lenders will search your credit file and put a credit application search on your file (so that could be several lenders putting searches on very close together).

zeds

They did an assessment of me when I rang. They would not clarify what this involved (ie where/what they were checking me against) but did confirm there was no check against credit reference agency files involved. They then gave me a telephone number and reference number to call to go into the details of a loan with their underwriting department - and told me that there would be no other check done of me, eg against credit reference agency files.

My clear understanding was that the underwriting department were going to source the loan from one of the various lenders they had to hand (as you say Bee Loans are a broker), but no check of a credit file or anything else was going to be done as I had passed this stage already.

So is that not right? If not right, I was misinformed plain and simple.

marliepanda

They might not credit check you (aka they accept anyone as their rates are so high!) , but even payday loans will show up on your credit file as you have lent money. That's what your credit file is there for

Apples2

zeds wrote: »

They did an assessment of me when I rang. They would not clarify what this involved (ie where/what they were checking me against) but did confirm there was no check against credit reference agency files involved. They then gave me a telephone number and reference number to call to go into the details of a loan with their underwriting department - and told me that there would be no other check done of me, eg against credit reference agency files.

My clear understanding was that the underwriting department were going to source the loan from one of the various lenders they had to hand (as you say Bee Loans are a broker), but no check of a credit file or anything else was going to be done as I had passed this stage already.

So is that not right? If not right, I was misinformed plain and simple.

Clear understanding based upon what?

What they have told you is true but lets not lose sight of what you are trying to do.
Responsible Lenders want responsible borrowers. They cannot know this without conducting a check on your credit file (Lenders I mean, not brokers).

The role of this broker is to fill out an application form on your behalf and throw it toward as many high risk lenders as possible.

The Broker doesn't give a hoot what your credit file says, they aren't taking any risk on this at all.

Look at the Terms and Conditions on the Bee Loans Website

Checks

8. In trying to get You a loan, lenders may Use credit scoring or other automated systems to assess Your application, make decisions and verify Your identity. These systems include searching Your records with credit reference agencies, employers, fraud and money laundering prevention agencies and the electoral register as well as providing them with information. These agencies can add Your details to their records for other organisations to do searches. Where there are joint clients, both records are processed by the agencies and a link between You can be created.

What is so bad on your file you don't want a lender to see?

side note: If you see a Manchester/Stockport phone code (0161), it's likely to be a scam, it's the very epicenter of financial scamming in the UK.

zeds

Hold on.

The loan I am talking about is for a low-ish amount - £1500. If I think back on the call, I think what they were saying was that for low-amount loans like this, it was the same as for payday loans: that no check on your credit file would be involved.

Are the terms you are quoting for 'usual'-type loans that they also handle, ie for larger sums - rather than for the kind I am interested in?

If loans of this low-ish amount, sourced through them, *do* involve checks against your credit file, then please could someone recommend somewhere to go that *doesn't* involve a check against my credit file?

The reasoning is private and is surely not really other's business to make presumptions about. I will be able to pay the loan back when required so it is basically a case of having to pay an admittedly exorbitant amount in interest, to be able to get hold of a cash sum short-term - a deal which is nonetheless of use to me. As I believe I have acknowledged, MSE recommends those lenders who *do* do a credit check on you but in this particular case, it's one who *doesn't* that I'm interested in, and I see no reason why this shouldn't be ok when I am definitely going to be able to pay it back on time, without risk of incurring extra charges.

Regarding Bee Loans, their main number is an 0161 one: are you saying they should be ignored full stop then?

bengal-stripe

zeds wrote: »

The loan I am talking about is for a low-ish amount - £1500.

It might be a low-ish amount for a proper bank loan, but for a payday lender it is extremely high. I do not think any payday lender will lend you that amount (let alone without a credit check).

zeds

OK: I see that Bee loans is a broker and have now read up about these; it seems using a broker is not a good idea as their lending department will probably forward your application to lots of lenders and most if not nearly all will do a credit check...

So you find your credit reference agency file may get lots of searches and this would wreck your record. If it happened.

Regarding Payday Loans with No Credit Check, the solution seems to be to approach lenders direct, at least you can choose how many you do this with. BUT I can only find details of about two that have no credit check:

WagedayAdvance

AccessFast Money

Without knowing more, the second is advertised as 'no credit check' but in their Ts& Cs they say they 'may use credit reference agencies...give details of your loan to them' etc etc. So it needs more investigation.

imoneyop

^^^If your credit history is so crap that you need to hide it from people you expect to lend you money, I can only see one outcome - you're going to end up getting scammed I'm afraid.

No one is going to lend you £1500 without being sure you can pay it back and to do that they will want to credit search you.

I'd get over to the debt free wanabee board if I was you and sort out the fact that you are living beyond your means.

Delree

Illegal loan sharks don't use credit checks as far as I'm aware. Sounds like I'm joking but they're no more dodgy than how this thread sounds.

Macca83_2

I think you'll be hard pushed to get an answer to your question here because the majority of this site will have gone through high street lenders. It would never occur to me to look for a company who doesn't perform credit checks because I honestly wouldn't want to deal with a company that didn't have a stringent set of rules for assessing lending