What Are No Credit Check Loans

What Are No Credit Check Loans

What Are No Credit Check Loans

Most loan or finance applications involve having a credit check with the major credit bureaux, as a means of assessing the application. The lenders look at your payment profile to check whether you have any credit and if you do are you making regular payments to it, they are also looking to see if you have any defaults or CCJ's (County Court Judgements). A no credit check loan is quite simply a loan that does not require a credit check to be carried out.Although the finance and in particular the loans industry in the UK has been devastated by the world wide recession, there are still a number of options open to those who may have had a chequered credit history and need a loan without having a credit check carried out;Payday LoansA payday loan is one type of loan that does not always need a credit check, although some lenders now do carry out a low level check. A payday loan is a loan taken out till your next payday for an amount between £75; and 850 which will be repaid in full when you next get paid. The lenders usually charge a flat fee of between 20 and 25 for every 100 borrowed. In order to qualify you will need to be at least 18 years old, be in full time employment with your salary being paid into a bank account with a debit card facility. You will also need to be bale to afford to repay the loan in full next time you get paid.Logbook LoansThis type of loan is a loan that is secured on your car logbook and is underwritten based on the value of your car. Currently (November 2010) none of the logbook loans lenders on the UK will carry out a credit search to assess an application. You can borrow from 500 to 50,000 and to qualify you will need to be the legal owner of a car that is clear or nearly clear of any finance, you will also need to be able to repay the loan by whatever means not necessarily employed. The logbook loans lenders are quite likely to charge a higher rate of interest compared to a normall personal loan.Guarantor LoansThis type of loan is underwritten based on your guarantors' details and not yours, and you can borrow up to 5,000. The lenders do not carry out a credit check on the applicant because they are more concerned with the guarantor. In order to qualify for this type of loan, you will need a current account that your full time salary is paid into, and will need to have a suitable guarantor in place to endorse the loan. To qualify as a guarantor your co-signee will need a good credit history, will need to be a UK homeowner with enough income from any source to justify the loan.Loans From FriendsObviously if you are looking to borrow from a friend or colleague they will not carry out a credit check on you first. As a result of the recession this sort of lending is becoming more popular according to recent research carried out by the Post Office. In the last 12 months alone lending to the tune of 7 billion has been lent to friends, with apparently 3 billion yet to be repaid.In SummaryThere are a number of options open to anybody wanting a no credit check loan, but it is important to remember that it is advisable to read the small print and seek independent advice before you agree to anything!

POST COMMENT

Eliminate Credit Card Debt In 2 Years Or Less – A Proven Debt Relief Tactic How to Get Out of Credit Card Debt Effectively? What Students Gain from Having a Credit Card Association Bank of China Group received five billion yuan Sand largest credit - Sand, North controlled water - water industries How To Deal With Holiday Financial Stress And Prepare For The Credit Card Bills That Are Coming In T Is A 680 Fico Score/beacon Score/credit Score High Enough? Are You Ashamed That Creditors Are Harassing You? Four Approaches Credit Cards Can Guide Your Finances Basic Information on Credit Card Processing Personal Loans No Credit Check - For Your Private Needs What is Considered a Good Credit Score Rating? New 2010 Fico Credit Score Changes How Is The Credit Score Calculated?