Sometimes in life, we end up in a situation where we need to borrow some money. If we can’t access the money we need elsewhere, we might draw our attention to a loan. This is especially true if we need the money right away.
However, it’s also true that not all of us have the credit rating needed to be accepted for most loans. As a result, we might want to know if we can apply for a same day loan without a credit check.
The unfortunate truth is though, this isn’t usually possible. Lenders are hardly ever going to provide a same day loan without asking for a credit check in the UK. However, this does not mean that this never happens.
There’s a lot we need to look at with this, so we’ve written this handy guide to explain everything you need to know about no credit check same day loans. If you need to know more – then read on!
What Is A Same Day Loan?
At its most basic form, a same day loan is a loan that you apply for and receive into your nominated bank account on the same day as your application. Typically, there are two types of these loans; payday loans and instalment loans.
Both types of these loans will usually ask you to undergo a credit check. This is so the lender can assess their risk of lending money to you and your likelihood of repaying it based on your borrowing history.
Moreover, they will need to conduct a credit check to assess what interest rates they might offer you, or even how much of the requested money they will provide to you.
What Is A Credit Check?
A credit check is a way that lenders, employers and even landlords can view your borrowing history. Hard credit checks which can impact your credit score temporarily are usually the type of credit check performed to learn the most about your credit history.
Credit checks will assess your credit report. They can see your payment history, whether or not you have ever defaulted on credit payments, how well you have managed credit in the past, how long you have lived in your current home, whether you’re on the electoral roll etc.
However, one of the biggest things that the credit check will look at is whether or not you have ever declared bankruptcy or fallen into significant financial trouble.
These credit checks provide the prospective lender with (usually) accurate information about your borrowing and financial history. They are then able to make an informed decision about their risk of lending to you.
If they deem you to be too risky to lend to, perhaps due to poor credit management in the past, they will either charge a significantly higher interest, or they will flat out refuse to lend to you.
More often than not though, lenders might accept your application on the basis that you find a guarantor. This of course will depend on your creditworthiness, which is determined by a credit score.
This score itself is determined by the factors we’ve explained above – borrowing history, residency history and general financial health.
Are There No Credit Check Same Day Loans?
It’s not impossible to find same day no credit check loans, but it’s extremely unlikely.
This is because of the factors we previously mentioned.
Lenders would be incredibly irresponsible if they lent money to borrowers without looking into their history of credit management.
As lenders will need to assess their own risk of lending to you, it’s very unlikely that they will not ask for a credit check. However, as we said – they do exist.
If you come across lenders online that claim they provide same day loans without a credit check, you need to consider the following points:
They’ll Likely Want A Guarantor
Guarantors are typically homeowners and having a guarantor on your credit application is very likely to be enticing to lenders.
This is because the risk of you defaulting on your credit agreement is outweighed by the “extra applicant”.
Lenders are entitled to seek their repayments from the guarantor if they need to due to defaulted payments – so it’s very possible that if a lender is not requesting a credit check, they will likely want a guarantor to be a part of the application.
It Could Be A Scam
It’s incredibly important that you’re careful when providing your financial information online.
Sometimes, you will find a website that seemingly is legitimate, but you quickly discover that money is leaving your bank account rapidly.
One of the most common no credit check scams pose as brokers who say they will give you a loan, but in the smallprint will state they charge you a fee for this.
You will never receive a loan, but you will always pay these fees and find your bank account drained in no time.
Be sure you check out the company before you provide any details.
Good lenders will not need your long card number.
They will only need your account number and sort code, as these are the things they need to pay money into your account, not the other way around.
You Might Be Charged Enormous Amounts
Finally, if you do come across a same day no credit check loan, you might find that the credit agreement stipulates an astronomical amount in interest fees.
This is so the lender can curb their risk of lending to you without performing any credit checks.
Unfortunately, this is something you would have to agree with if this was the only loan available to you like this.
It’s unlikely that you will find same day no credit check loans, but if you do – you must be extremely careful and consider your options before you ever accept a credit agreement.