Do You Get Short Term Loans No Credit Check in The UK?

The Financial Conduct Authority is responsible for formulating the rules and regulations controlling the operations of banks and other financial institutions. According to the regulations of the FCA no lender can give a loan to an applicant without performing a credit check. Hence we can say that providing loans to an applicant without credit check is illegal in the UK. What do lenders mean when they advertise short term loans no credit check? Actually all legitimate lenders will conduct a credit check before they approve a loan for a borrower. The traditional banks and lenders will never give loans to a person who has bad credit. However, there are many modern day specialist lenders who go soft on the credit check and provide loans even to individuals who have bad credit.

Why do lenders give loans to people with bad credit?

It may seem that the specialist lenders are not interested in getting their money back when they provide loans to people with bad credit, but this kis not the case. The specialist lenders are as interested in making a profit as any commercial establishment. However, the specialist lenders understand that often a person may end up with bad credit due to no fault of their own. Nowadays sudden lay-offs and salary cuts are quite common due to the sagging economy of the UK. If you suddenly lose your job or are faced with a salary cut, then even a well-planned budget can go haywire and you may not be able to repay loans or pay your utility bills on time causing you to end up with bad credit. Even if the bad credit is a due to wrong financial habits then most likely you have learnt from your mistakes. The trouble is that once a negative mark is placed on your credit report it will stay there for at least 6 years.

Why opt for specialist lenders?

The specialist lenders understand that although you got a bad credit score due to something that may have happened 5 years ago, in the current time you are perfectly capable of managing and repaying a loan. This is the reason that these specialist lenders take your current financial situation into consideration while approving a loan. What’s more they charge a higher rate of interest when they give loans to people with bad credit. However, you can get the loan at a reasonable and affordable rate of interest if you apply for the loan through a loan broker. These loan brokers are associated with many specialist lenders and they will be able to find a loan that exactly suits your requirements.

Why opt for loan brokers?

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Loan brokers are able to help you  get many special loans apart from loans for bad credit, like short term loans for students. At the same time, there are many lenders associated with each loan broker and therefore the loan brokers are able to get you the exact loan product that suits your requirements. At the same time, many specialist lenders deal solely through loan brokers and you cannot approach them directly. The loan brokers also employ loan advisers who look into your financial situation and ensure that you don’t end up taking a loan that you cannot afford. This is the reason that more and more people are opting for loan brokers rather than approaching the lenders directly.