There are a number of unexpected situations that may suddenly require you to take on a loan because you are financially unprepared to deal with them. For instance, it could be an urgent medical bill, car repair, or some other chaotic and unavoidable circumstance.
In such cases, applying for a payday loan no credit check on this site can be a great solution, as most direct lenders on UK Bad Credit Loans are typically able to process these loans in a matter of hours, in contrast to traditional lenders that can take days and often have stringent lending requirements.
However, it is important to keep in mind that there is no legal way to secure a loan in the UK without undergoing some form of credit check. And this is because the Financial Conduct Authority (FCA) holds all lenders in the country to a specific standard by requiring them to conduct a credit check before agreeing to provide a loan to any borrower.
And while this can seem like a headache, especially if you happen to have a less-than-stellar credit history, it’s actually a good thing because it means that you won’t find yourself stuck in a dangerous position with an unscrupulous credit lender.
Do all lenders for payday loans run credit checks?
All UK credit lenders on UK Bad Credit Loans that hold Consumer Credit Licences are legally required to properly assess every potential borrower that they intend on lending to. Long gone are the days when payday lenders like Wonga could accept any loan application with the sole intention of pursuing profit.
These days, any legitimate lender will conduct a credit check to verify information on an applicant, as well as determine their true credit limit. However, you can rest assured that most payday lenders are typically open to considering your application, even if you happen to have a bad credit score.
The main thing you should ensure is that you have a steady income stream, as this is what most payday lenders will look at when they are reviewing your loan application.
What Are The Eligibility Requirements of a Payday Loan?
Payday lenders typically specialize in providing borrowers with short-term funding to help them deal with pressing financial priorities. These loans tend to be relatively small and come with short repayment periods.
They also don’t require you to put up any collateral like a car or house, as eligibility is usually tied to your level of income and employment, despite any minor blemishes that you may have in your credit report. In this respect, the basic eligibility requirements you will usually need to meet include;
- Being at least 18 years old
- Own a current bank account for transfers and payments.
- Have a permanent residence within the UK.
- Be able to demonstrate that you have sufficient income to repay the loan.
Aside from that, when it comes to applying for funding, you only need to fill out an online application form that will require you to fill in your name, current, and past addresses, employment details, income details, etc. This should only take a few minutes to complete, and once submitted, it will be sent to their panel of lenders for review.
And since UK Bad Credit Loans is a credit broker, this opens the door to a wide range of funding opportunities so that you can find the loan that suits your financial situation best.
Is Applying For A Payday Loan The Right Choice?
If you have a bad credit score, there are a wide variety of loans that are available for you to choose from, so when it comes to deciding if you should apply for a payday loan, there are a few key considerations you should first take into account. The first thing to consider is if you need urgent funding, as payday loans can be deposited into your account within the same day of approval, thereby allowing you to deal with unexpected emergencies fast.
Another thing to take into account is the fact that since payday loans come with low loan limits and short repayment periods, you won’t find yourself stuck in debt for long, as you will simply need to repay the amount once your next paycheck arrives. Plus, it also allows you to quickly build up your credit score, which can help to create more credit opportunities in the future.
Another benefit is that unlike most other forms of lending, payday loans do not need to be earmarked for any specific reason, which means that there’s no limit on what you are able to use the money for, whether it be to deal with a sudden bill, repair your car, sort out household expenses, etc.
Aside from that, since payday loans are a form of short-term lending with low loan limits that are usually set between a couple hundred and a few thousand pounds, they typically come with high approval rates, even for those with bad credit, because the level of risk to the lender is extremely low.
