An Overview of No Credit Loans in the UK

What is a No Credit Loan?

A loan which is approved without the bank looking at the candidate’s credit score is called a no credit loan. This is beneficial on the off chance that you have a poor credit score. The lender will take into account other budgetary perspectives such as your source of income and employment. A no credit loan in the UK is very popular among blue-collar workers.

What is the Eligibility for a No Credit Loan?

As it is with every loan, there is a certain criteria to be met when you are looking to avail a no credit loan in the UK which is listed as follows.

• The applicant should be at least 18 years of age.

• The applicant should be a resident of the UK.

• The applicant should have a valid UK bank account.

What are the Loan Tenures and Interest Rates?

Loan tenures are short and interest rates are higher when it comes to availing no credit loans in the UK. This is because lenders see these loans as a higher risk. However, most lenders will offer up to 2000 pounds. Due to the risky nature of a no credit loan you may get less time to repay the amount you owe.

The table below lists the different interest rates offered by various lending institutions

What are the documents required for a No Credit Loan?

Although a credit score is not considered when you apply for a no credit loan in the UK, other details required are as follows.

• Your current address.

• Your monthly income.

• Your employment history.

What are the lenders that offer a No Credit Loan?

The Financial Conduct Authority (FCA) is the regulatory body and operates independently from the UK Government. According to wikipedia, the FCA regulates all financial firms that provide services to customers and maintains the integrity of the financial markets in the UK.

When searching online for no credit loans in the UK, you may come across certain lenders offering a payday loan which is a type of a no credit loan but can only be used for small amounts and have to be returned within 14 days. A payday loan usually comes with high-interest rates. The idea behind this, the borrower will pay back the amount as soon as his paycheck arrives.

Some of the lenders that offer no credit loans in the UK are listed below along with their key features. These lenders make sure that you can comfortably repay your line of credit are all FCA compliant.

Drafty

• They offer loan amounts up to 3000 pounds.

• After availing a no credit loan, if the loan amount isn’t used, you will not be charged.

• Offer flexible repayments as long as you can repay the monthly minimum.

• The loan amount will be transferred to your bank account in less than 30 minutes.

Cashfloat

• Loan amounts are available up to 1500 pounds.

• If unable to repay the loan amount as planned, an extension can be taken.

• There is no application fees when registering.

• People with a low credit are encouraged to apply.

• No guarantor is required.

Swift Money

• They offer loan tenures ranging from 1 to 12 months.

• Loan amounts are available from 50 to 1000 pounds.

• Can be registered within 5 minutes through their online application process.

• There is no set-up fees. Only the amount loaned and interest charged by the lender is to be paid.

• If you are rejected by one lender, your application will be passed on to another lender.

Moneyboat

• They offer loan amounts of up to 1500 pounds (maximum of 800 pounds for new customers and a maximum of 1500 pounds for returning customers).

• Loan tenures are repayable over a minimum term of 2 instalments and a maximum term of 6 months. The minimum installment duration for the first installment is 5 days.

• Customers can pay back their loan early and avail better offers for the next time they use Moneyboat.

Wizzcash

• They offer a no credit loan in the UK with an amount of up to 1000 pounds.

• Their approval process is less than 15 minutes and a provisional decision will be sent to you.

• Once your application is approved, Whizzcash will transfer the money on the same day.

• Offer repayment tenures ranging from 3 weeks to 3 months in equal monthly installments.

• In the off chance that Whizzcash does not approve your no credit loan, they will link you to other consumer credit companies with similar services.

When should you take a No Credit Loan?

The credit loan industry is worth over 400 million in the UK. It is immensely profitable because interest rates are so high. Hence, it becomes a complicated decision whether to use it. No credit check loans in the UK should be availed as a last resort. It should not be used to pay off other debts as that could lead to accumulating a bigger cycle of debt in the long run. Before deciding, always check if the lender is regulated or authorised by the FCA.

If your lender is not authorised by the FCA, it is quite possible they are predatory payday lenders. No credit loans in the UK are widely available due to the advancement in technology as 80% of these agencies operate online. These lenders provide ease of access and lets the borrowers compare interest rates and loan tenures in real-time.