No Credit Check Loans: How do they actually work?

No Credit Check Loans: How do they actually work?

No Credit Check Loans UK

Keep an eye out for companies promoting a no credit check loans policy in the UK, no credit check loans is actually hearsay. Loan Bird will only perform a soft search to place you in touch with our suitable lenders.

First things first, rest assured our service will NOT affect your credit score. So, when we introduce you to our lenders you will be able to decide which loan option suits you best.

A soft search or no credit check?

We’ve put together this article to explain in further detail how our service works in reflection to no credit check loans. Some customers have previously asked if this service can damage their credit report. will only ever conduct soft search to provide you with some loan options.

The lenders we provide will make their own decisions on whether they need to do a full credit search. This will only take place if you choose to accept the loan that particular lender is offering.

Loans without a credit check

It’s been a difficult financial year for many of us; with the looming threat of Brexit and many of our favourite high-street brands going under, it’s safe to say that money has been tight. That’s why so many brits are looking towards their lending options. Whether it’s to clear off existing debt, get the Christmas shopping in early or even just to treat themselves.

No credit check loans are, alongside bad credit loans and payday loans, as one of the most popular marketing tools in the UK. People are generally more likely to apply with companies who promote this. It gives the browsing individual the impression there is much less of a risk to their credit score, even though the lender might still carry out a credit check.

The reason no credit check loans is such a highly used marketing strategy is due to it being an increasingly popular term borrowers use when searching for funds. This boils down to the art of advertisement and elusive promotional values, even though the term isn’t an actually a product.

If you are declined for a loan then your credit score is likely to suffer, that’s a given. In turn, this will make you less likely to be approved for credit in the future. Or can significantly reduce the lending options that are available to you, it really is a vicious cycle.

The people who need access to credit the most are often the same people who are likely to be declined from traditional lenders, such as banks or other brokers.

Answering your questions

No credit check loans are sometimes promoted as a type of short-term/long-term lending option. They have been around for a while, so if you’re still reading this you might have a few questions relating to them.

We’ll try and answer some for you, the below are what previous customers have asked us:

Are no credit check loans safe?

This is a difficult question to answer for certain, as there are so many lenders out there who all offer similar methods of short-term lending.

Another thing that consumers should consider is the definition of safe. Here at Loan Bird, your information is safe and secure, so you’ll never be at risk of your data being passed on to anyone else.

Similarly, when you agree to a loan with one of our providers, they will stick to the terms and conditions as outlined in your agreement, so you won’t receive any unexpected charges, fees or interest increases.

Whilst it’s difficult to comment on other providers, we know our process and service is safe.

Why is the interest rate higher than bank loans?

You may have noticed that personal loans offered by high-street banks are, more often than not, very competitive with their interest rates. In most cases, they are much lower than that of no credit check loans, payday loans and bad credit loans.

We aim to be as transparent as possible with our customers, and the reason that these types of loans come with higher interest rates (in some cases) is that they are a higher risk to some of our lenders.

A traditional bank will run a thorough credit check on you, taking into consideration your payment history, your credit score and any outstanding debts that you might have.

When you apply for a soft search loan, lender’s will also be mindful of affordability. Sure, they might run a soft check for security purposes, but this will not leave a mark. As we don’t have a full picture of your financial situation, we can’t consider any defaults or missed payments you might have had in the past.

In order to ensure that we recover any potential funds, the interest rate is higher than a typical loan. Don’t worry though, as the balance comes down, the interest payments will, too.

Is there a credit footprint with Loan bird?

Some of us might have bad credit but earn an good enough income to support all the loan repayments. Can you even get a loan? Are you apprehensive because of a credit search? There’s lots of questions you may ask yourself.

There are plenty of options out there to help you, even with a past of poorly managed credit. Because we use a soft search only you have the option to walk away from any proposals without a dint in your credit score.

Most of us have been in a situation where a lender has rejected the application. Inquiring for a loan with a lender directly will come up on your credit report, if you’ve been turned away then this can hinder your credit health. More lenders are now providing bad credit loans, so if you are struggling there is still hope.

Can I be declined?

In short, yes – but it’s not very likely.

The point of a no credit check loan is to gain access to credit without being declined. This gives you the opportunity to know if you’re likely to be successful. If you are when paying it back it can actually increase your credit score, making you more likely to be accepted for credit in the future.

If we believe that you’ve been untruthful in the application, or, if we believe that you’re applying for a loan for fraudulent purposes, we do have the right to refuse a financial advance.

Don’t worry if you do get declined – feel free to get in touch and we’ll be happy to discuss this further.

What’s a soft search?

We will never pursue or leave a note on your credit report. The service we offer is pretty much as close as it gets to what a no credit check loans service should be. So, rest assured when using there won’t be any nasty surprises. We realise your credit rating is precious, and we want you to keep it in tip top condition.

Loanbird wants to provide a platform to help your chances of obtaining a loan, not to affect your chances of gaining any form of credit.

Also to add, with us you can see if you’ll be accepted for one of our loans before you choose a lender. Our application process only requires brief details e.g. employment status and if you have an income.

We only need this information to help assist you in finding the best possible options.

How quickly will I get the money?

If you apply directly through Loan Bird, you’ll be able to access the funds within 24 hours with some lenders!

How can I apply?

If you’re interested in applying for a loan with a soft search, you can do this so quickly and easily online. Our service is free to use, and will quickly access the best loans across the internet to make sure that you’re getting the best possible deal.

The application form takes minutes to fill out – you can do this below.

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