What is a No Credit Check Loan in the UK?
There is a marketing gimmick on Google that a no credit check loan is a short-term loan that is given to a
borrower without conducting any credit checks on their report,. However, in reality, such loans are illegal
and invalid in the UK. Generally, lenders use a soft credit check to assess the
affordability of loan repayment before providing an initial loan quote to the borrower.
A soft credit check helps in protecting your credit
score as it doesn’t leave any footprint on your credit report. That means you get an idea of
what rates of interest you will be offered without affecting your history.
Can I Get a Short-term Loan with No Credit Check in the UK?
No, there is no such thing as loan without credit check. The financial regulator of the UK – the Financial
Conduct Authority – has made credit checks mandatory. Borrowers used to borrow a hefty amount of money and
when they failed to repay, they had to pay more than twice the borrowed loan amount. Hence, a proper review
of the credit history will a lender to evaluate a borrower’s financial conditions and his capability
to repay the loan so that the borrower doesn’t get caught in a debt trap.
You may avail short-term loans with no
guarantor to cover your emergency expenses. These loans don’t require any collateral or guarantor.
Moreover, they are easy to use and are quite flexible in terms of repayment. A borrower may repay the loan
within a period of a year in easy monthly instalments. You can check Oyster loan for no processing fees no
guarantor loans.
Benefits of an online Loan with a Credit Check UK
Considering the aspect of financial management, there are several benefits of availing a loan with credit
check rather than falling for a trap of availing loan without credit check
- Safe: If you decide to choose a lender or credit broker who conducts a formal review of
your credit history, then you are in safe hands. The lenders and the credit providers are responsible
enough to know your financial circumstances to help you avoid any adversities.
- Reliable: The FCA has made it mandatory to run a check against a credit report before
availing a loan. Suppose, you have opted for a payday loan with no credit check from a lender
and after that, you face some serious troubles, you cannot report it to the FCA.
- Credit Score: Once you take a loan from a lender who runs credit checks, there are
chances your credit score may improve if you follow the repayment schedule.
- Regulated: All the FCA authorised lenders to prefer to conduct a credit check or else,
they may get into serious trouble by the administrators. Those lenders will never create any unnecessary
trouble and they will follow all the rules of the regulator to avoid any inconvenience.
Borrow Safely – With Oyster Loan in the UK | No credit check loans is a false trap
Oyster Loan is an FCA registered credit broker that deals with a panel of FCA authorised lenders of the UK.
We promote responsible lending and hence, our lenders conduct a credit check to safeguard the interests of
the borrowers. We deal in a wide variety of short-term loans to cater to the financial needs of borrowers.
We do not charge any upfront fees and our simple process of a loan application will help you avail a loan
in a relatively faster time and in a trouble-free manner. Borrowers must repay the loan on time to avoid any
negative impact on their credit score. And timely repayments always contributes to building a good credit
score.
We strive to maintain the standard and fair industry practices to enhance transparency and systematic
approach in our conducts.