If you have a history of poor credit, you might feel apprehensive about applying for a loan. Lacking confidence in your credit score could lead you to search for ‘no credit check payday loans’.
Our guide looks into whether it’s possible to get a payday loan without a credit check and explores some payday loan alternatives that you may wish to consider.
What is a payday loan?
A payday loan is an amount of money borrowed from a lender and is designed to tide you over between one payday and the next if you need to cover an unexpected expense.
Typically, payday loans are required to be repaid in full within a month.
Is it possible to get a payday loan without a credit check?
The Financial Conduct Authority (FCA) requires all responsible lenders in the UK to carry out an affordability check on anybody applying for any type of loan.
If you decide to apply for a loan, you should make sure that your chosen lender appears on the FCA register. You should be extremely wary of any company or individual claiming to offer credit but aren’t authorised and regulated by the FCA. If they’re not on the FCA register, they’re unlikely to be operating within FCA guidelines, and this could mean that you won’t be protected if something goes wrong.
How does a credit check work?
When you apply for a loan with a responsible lender, they’ll use the information you’ve provided to complete an affordability check, which will include a hard search or Open Banking.
Open Banking is a secure procedure carried out by a third party, such as a lender. With your consent, the authorised third party will be able to access a read-only view of your online bank account, including your recent financial transactions.
A hard search will be visible on your credit file for up to 12 months, and multiple hard searches within a short period of time could damage your credit score.
Using a credit broker, such as Growing Power, could help to protect your credit file from multiple hard searches. When you search for a loan with a credit broker, they will scan their panel of lenders for a suitable loan using a soft search, which won’t impact your credit score.
If you’re matched with a lender through a credit broker and choose to make a full application, an affordability check will be completed by the lender. As previously mentioned, this may include a hard search.
Can I apply for a payday loan with Growing Power?
Growing Power is a credit broker, not a lender. None of the 30+ lenders on our panel offer payday loans. If you’re looking for a payday loan alternative, Growing Power could help you search for a short-term loan from £100 to £10,000.
Depending on the amount of money you apply to borrow, you could repay your loan between 3 to 60 months.
Our service is free to use, and if we’re able to match you with a lender, you’re under no obligation to proceed with your quote.
All the lenders on the Growing Power panel are authorised and regulated by the FCA.
Who can search for a loan with Growing Power?
You’re welcome to search for a payday loan alternative with Growing Power if you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account and valid debit card; and
- Have a regular source of income paid into your bank account.
Any credit score considered.
The Growing Power process
- Tell us how much money you need to borrow and choose a repayment term. Our online form should take around five minutes to complete.
- Using soft search technology, we’ll take a look at your financial history with no impact to your credit score and scan our panel of lenders for a suitable loan.
- If you’re matched with a loan, you’ll be redirected to the lender’s website, where you can find out more about the loan and decide whether you’d like to make a full application.
- The lender will carry out an affordability check, which will include either a hard search or Open Banking. Remember, a hard search will remain on your credit file for up to 12 months, and undergoing multiple hard searches in a short space of time could cause a decline to your credit score.
- If the lender is happy with the outcome of their checks, you’ll be sent a loan agreement. You should read through this thoroughly before deciding whether to sign and return.
When will my money be sent?
Some of the lenders on the Growing Power panel could send your money on the same day as your application is approved, although you should bear in mind that the time it takes for the funds to appear in your account will depend on your bank’s policies and procedures.
What happens if I can’t afford to repay my loan?
Before you apply for a loan, it’s vital to ensure that you’re able to make your repayments on time each month. Making a late repayment or missing one altogether will harm your credit score, and you could also be charged a late fee.
If your financial situation unexpectedly changes during your loan term and you find that you’re unable to make your repayments, you should contact your lender as soon as you can.
Your lender will understand that changes in circumstances can happen, and they will be keen to work with you to put a plan in place moving forwards.
Worried about money?
You’re not alone and you don’t need to suffer in silence.
If you’re struggling with money and debt concerns, please think about reaching out to one of the following charities or organisations for free, confidential advice: StepChange, MoneyHelper, Citizens Advice, and National Debtline.