Are No Credit Check Loans Right for me?

It can be difficult at times, deciding whether certain loans are right for you or not. This can be made easier if you know what the loan is and how it works. However, this is just part of the work, you will also need to think about your own personal circumstance and what will suit you. Therefore, it could take some time to make this decision.

What is a no credit check loan?

It is a good idea to have a good understanding of what a no credit check loan is first. It is actually known by different names and probably best known as a payday loan. It is a loan which will allow you to borrow usually between £100 and £1000 without it mattering what your credit score is. This means that if you have a poor credit record and cannot borrow money anywhere else, you will still be able to borrow from these lenders. Although they do a soft credit check, they will not mind about your credit history and will not even leave a trace on your credit record when they do the check. It is merely a legal formality. The loans are very short term as well. This is great for anyone who does not like being in debt as it will not last long. You will just have to repay the loan when you next get paid. This could be a few weeks or even a few days in total. You will need to repay the full loan plus interest and fees all in that one go. You therefore should work out how much this will be and then you will know how much money you will need to make available to make sure that you can pay it.

Will it suit me?

It is important to think about whether this type of loan will suit you. There are so many different loans such as those loans offered by Boutell.co.uk and so there is a lot to think about. You might want to start by thinking about how much money you need. A no credit check loan will offer up to £1000 and so think about whether this will be enough. It is worth bearing in mind that if you are a first time borrower you may not be able to borrow such a large amount. Often these lenders will want to lend smaller amounts to start with and see wither they can trust you before they offer you larger sums of money.

The fact that you do not need a good credit record can also be important. This is because you might be in the situation where your credit report is not good and perhaps you cannot borrow money from anywhere else. This can be a scary situation but knowing that there are no credit loans available for you to use can be a great relief.

You will also need to make sure that you will be able to repay the loan. The loans are very quick and so you will need to repay the money next time you get paid. You will need to think about whether your salary will be enough to cover that repayment and also whether you will have enough left to cover everything else that you need to buy as well. This can be tricky to calculate but it is worth spending some time with old bank statements and a calculator and write a list so that you can be completely sure.

The loans can be arranged really quickly. It is often the case that a no credit check loan will be available in a few hours. This means that you could have the money in your bank account within a few hours. This can be extremely useful and well worth knowing. Sometimes we are in the situation where we need money quickly perhaps for a forgotten bill, a home repair or something like this and knowing that we can get money like this very quickly can be a weight off our mind.

It is important though, to take time to weigh up your different options. It is great to be aware of what loan options there are available for you but you also need to make sure that you are picking the best one based on your situation. You need to think about how much money you need, how much you can afford to repay, how quickly you need it and what your credit score is like. This will help you to decide what type of loan will work. Then you need to compare the different lenders to find out which one might suit you the best. There are a lot to compare but it will be worth it when you find the one that is the best value for money as you could save money and get a great borrowing experience.

How do No Credit Check Loans Work?

You may have heard of no credit check loans and wondered how they work. These loans are fairly new onto the market and this means that not everyone has had a chance to try one out. It is good though, to know what they are all about in case you need one. This might be something you feel you will never need and will be a waste of time, but we never know when we might need to borrow money and under what circumstances, we might need it.

What are no credit check loans?

You may have not heard of no credit check loans before, in fact you may wonder whether they are even legal. You would be right if you were thinking that it was a law the lenders had to do a credit check. However, these loans are slightly different and do their credit check in a different way.

The loans have other names such as short-term loans or payday loans and so you may have heard of those. They are very simple to understand as well. They are not issued by traditional banks and high street lenders but they tend to be online loans. This means that the lenders are not so well known.

The loans are usually for £100-£1000 and you can choose how much you borrow. However, you may find that a lender will not be prepared to lend so much to a first time borrower. It might be that they will want to lend a small amount and see whether you manage to repay it on time before they lend a higher amount. This is because they will be taking on quite a risk. They will be offering the loan to anyone even if they have a poor credit record so it will be important to make sure that they can get their money back.

How do they work?

The loans work a little differently to a more traditional loan. Applying online or over the telephone is quite different to some but there are some other differences as well. The main one is probably that you will normally need to repay it all in on ego. This means that you will need to repay everything that you borrow and the interest and fees all in a lump sum. This can be fantastic for people that do not like being in debt for long because the debt will be gone really quickly. However, it is really important to make sure that you have the money available to repay it. If you miss the repayment or pay it late there will be additional costs to pay, just like any other loan and it is wise to avoid these if you can. If you are careful though you will be able to avoid these. If you borrow a reasonable amount, check how much you can afford to repay and are very careful with your money, you should be able to do it. Just make sure that you plan it all out beforehand so that you are confident that it is something that you can afford and you have a written plan if you need to change your spending habits in order to cope.

The day that you have to repay the loan is on your payday. This should enable you to manage it more easily as you will have money coming in on that day. The lender will set up a direct debit so that you will not even forget to pay. You will need to make sure that you will still have enough money available though. It is easy to assume that you will have enough money because you have been paid. However, you need to be really careful because you will have other direct debits coming out perhaps or other things to be paid. You may even have an overdraft that will get paid on that day too. Therefore, you need to make sure that you will have enough money there to pay the loan.

There are lots of different lenders that will offer this type of loan as well. This means that you will have plenty to choose form. It is a good idea to compare them as well as they will differ. They will be different on things like price and customer service. You may want to go with the cheapest but it is worth thinking about whether there are any more factors that might be important such as how easy it will be to repay, what the lender is like and so on. There are some differences between the lenders with regards to the way that the loan works. It is good to do comparisons for this reason as well. The differences might not be huge but they could be the difference between whether you decide to pick that lender or another and this could determine whether you have a positive or negative borrowing experience.