Do No Credit Check Lenders Exist?

In short the answer is no, no credit check lenders do not exist, and if you come across a lender who doesn’t perform credit checks you should stay away. Perhaps you might have a poor credit score and are worried that a lender who does perform them won’t accept you. You should consider whether a loan is the best option for you. But, as well as yourself, you need to consider your financial situation before applying for a loan with any lender.

What are Direct Lender Payday Loans?

Understanding more about direct lender payday loans is something which you need to consider when applying for a loan. A payday loan is simply just a small loan which you are able to get hold of if you are in need of money when something unexpected occurs. But, instead of a lender looking at your credit score and deciding if it is safe to lend to you or not, lenders need to also evaluate your current financial position to ensure you can afford the loan itself. In other words, with the typical conventional loans which you can apply for here at BingoLoans, we will conduct a credit check and so will our lender partners.

Should I use a Lender who doesn’t perform a Credit Check?

The simple answer to whether or not you should use one of these lenders is no. First of all, all no credit check lenders aren’t FCA regulated. This makes them quite unsafe to use as they are not based on specific rules like other lenders are. The FCA keeps the industry safe and healthy for consumers and lenders alike.

Second of all, due to them not conducting a credit check, or even just conducting a soft credit check, the interest rates are more than likely a lot higher than they need to be.

Does a Loan affect your Credit Score?

Some people who are looking to borrow, using a loan might be worried or concerned about taking out a loan and it having a negative impact on their credit rating/score, especially if they already have bad credit, to begin with. But, in actual fact, getting a payday loan or short term loan could actually help you improve your credit score. The process doesn’t happen overnight but if you are constant and on time with your repayments, your credit score will rise. Here at BingoLoans, our bad credit loans allow you to take out a loan and prove to us that you are a borrower who is trustworthy and not as much of a risk as it may seem.

Are there any alternatives to this?

There are plenty of alternatives to no credit check lenders. In fact, there might be more than you think! Lenders including us here at BingoLoans offer loans for those with bad credit. We believe that your credit score doesn’t define you. Even though we do look at your credit score, it isn’t the only factor we consider when accepting or declining your application. So, a bad credit loan could be one of your best options.

Another alternative is saving. Saving is something which takes a lot of time. But, in the long run, it is better for you and your financial position. Loans should be seen as the last resort when it comes to needing money. That is why our payday and short term loans should only be borrowed in an emergency. Unlike loans, when it comes to saving up yourself, you can earn interest instead of paying it.

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