lenders with 'no credit check' claims

DCFC79

zeds wrote: »

Wow. Collective outbreak of nastiness here.

A simple question and... spiteful reactions. (Though some useful...)

For what it's worth I have a good record of paying back debt. And as stated in the original post I could pay back a payday loan as soon as required, so am not in the danger zone of incurring extraordinary extra charges (though as I acknowledged, clearly the cost of the loan is going to be a lot higher than you'd like). People have just made a load of assumptions etcetc.

And yes I'd expect further comments of the same after this post...well done.

Theres no nastiness in the responses. If you had been more open with us in the first place then no1 would have made assumptions. Why not ask your own bank ?

[Deleted User]

zeds wrote: »

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.

The word responsible in responsible lender refers to their responsibility to ensure that borrowers do not endure financial hardship because of financial products given to them. If a lender is not a responsible lender this means they have no regard for their customers well being, it does not mean that they have no responsibility to their own share holders.

Think about what purpose a credit check serves: a credit check gives the lender information on who they are dealing with (name, address) and what they are dealing with, is it someone with a steady financial history who has hit a rough patch or is it someone who has a history of ignoring their responsibilities? This information allows lenders to make an informed decision about whether or not the borrower will be profitable for them.

There is no lender that would allow someone to borrow money without knowing who that someone is. Every supposed lender that doesn't credit check is going to be some form of broker or referral company that does not provide the loan themselves, and you can be sure that the actual lender will perform a credit check.

If you want to take out a loan with no credit check you're going to need to either provide some form of collateral to a pawn broker -- in which case it makes far more sense to just sell the items --, or you're going to have to involve yourself with criminal loan sharks, which puts your well being and the well being of your family on the line, not just your credit rating.

A record of a single high interest unsecured loan on your credit file is not the end of the world, sure it's not great but if you need the money so desperately that you're willing to consider involving yourself with irresponsible lenders then taking a hit on your credit file is worth it.

zeds

Thanks all. New useful answers - so that's great.

My position is maybe unusual - thus a couple of people perhaps rightly thinking it was slightly different, near start of thread, and seeming to sound a bit harsh as a result.

It is just a case of wanting a short-term bridging loan - for a period of about 2 weeks - where I don't want that to affect my credit record; in the circumstance where I have other pay coming in before very long (in a few weeks or so) so my position improves. No point scarring my credit record if I can avoid it. The bank are not being understanding at this time (despite a fairly good record). So it's a temporary blip I'm looking to cover.

What is apparent, in part from this thread, is that there seems nowhere that will give such a loan - the talk of 'no credit check' (which suggests 'no entry on your credit file') that is branded about the place is an illusion. Some already know about this - some don't, thus my posting.

Nice_Weather_For_Ducks

zeds wrote: »

Thanks all. New useful answers - so that's great.

My position is maybe unusual - thus a couple of people perhaps rightly thinking it was slightly different, near start of thread, and seeming to sound a bit harsh as a result.

It is just a case of wanting a short-term bridging loan - for a period of about 2 weeks - where I don't want that to affect my credit record; in the circumstance where I have other pay coming in before very long (in a few weeks or so) so my position improves. No point scarring my credit record if I can avoid it. The bank are not being understanding at this time (despite a fairly good record). So it's a temporary blip I'm looking to cover.

What is apparent, in part from this thread, is that there seems nowhere that will give such a loan - the talk of 'no credit check' (which suggests 'no entry on your credit file') that is branded about the place is an illusion. Some already know about this - some don't, thus my posting.

Taking out a loan and repaying it as agreed (with the credit search and repayment history added to your credit record), will actually enhance your credit rating and willingness of lenders to lend to you in the future.

I don't see what the issue is really I don't

Sinhanada

Hi Zeds

Unfortunately any loan you take will appear on your credit file. My thought is that if you are currently on a DMP or IVA then a loan would show up and the creditors you are paying back could quite rightly reject any further agreements.

As for no credit check loans - they are "available", but at a much higher interest rate. Stay away from Pay Day Loans as much as possible