In this Growing Power guide to short term no credit check loans, we answer some key questions, including:
- Do no credit check loans exist?
- Can you get a loan with bad credit?
- How can I improve my credit score?
What is a short-term loan?
As the name suggests, a short-term loan is a sum of money borrowed from a lender, which is repaid across a short repayment term.
The lenders on the Growing Power panel offer personal loans from £100 to £10,000, with repayment terms between 3 and 60 months, depending on the amount of money you apply to borrow.
Is it possible to borrow money without a credit check?
You cannot get any type of loan without a full credit check.
A full credit check is sometimes referred to as a creditworthiness assessment.
A creditworthiness assessment allows lenders to determine how likely you are to be able to repay the money you’re applying to borrow. When considering your application, the lender will take various factors into consideration, including your credit history, income, and monthly outgoings.
A creditworthiness assessment will include either a hard search or Open Banking.
A hard search is when a lender takes an in-depth look at your credit history to see how any past or current credit agreements have been managed.
You should be aware that 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 will harm your credit score.
What is Open Banking and how could it help potential borrowers with bad credit?
Some of the lenders on the Growing Power panel use Open Banking as part of their creditworthiness assessment.
With your consent, Open Banking provides lenders with a read-only view of your online bank account, which enables them to take a closer look at your recent financial activity. Open Banking is safe and secure; only you can decide who accesses your account, and you can withdraw your consent at any time.
Open Banking gives lenders a more up-to-date overview of your recent financial situation, rather than relying on credit history alone, which may not reflect your current ability to repay any money you borrow.
Can I get a no credit check short-term loan with Growing Power?
As discussed, you cannot get a loan without a full credit check (creditworthiness assessment).
Growing Power is a credit broker, not a lender. We use soft search technology with no impact to your credit score to help you search for a suitable loan.
You can search for a loan with Growing Power without harming your credit score, although if you’re matched with a lender and choose to make a full application, you will be subject to a creditworthiness assessment, which could include a hard search.
All of the lenders on our panel are authorised and regulated by the Financial Conduct Authority (FCA) and will therefore carry out a creditworthiness assessment on every loan application.
No credit check loans
Any company or individual claiming to provide ‘no credit check loans’ is likely to be operating outside of FCA guidelines and should be avoided. Sharing your personal and financial details with these companies could put you at serious risk.
If you take out a loan with an unregulated company or individual and something goes wrong, you will not be protected.
Authorised and regulated companies will appear on the FCA register, which you can check here.
No credit check bad credit loans
You cannot get a loan, bad credit or otherwise, without a creditworthiness assessment.
If you’re searching for ‘no credit check loans’, there’s a chance you might be worried about your credit score.
Please know that while your options may be limited, it could be possible for you to be eligible for a bad credit loan. Please note that a bad credit loan could come with a higher rate of interest.
Growing Power work with several responsible lenders who specialise in loans for people with bad credit and could be willing to consider your application.
How to search for a loan with Growing Power
- Tell us how much money you need to borrow and how long you’d like to borrow it for. Our online form should take no longer than five minutes to complete.
- We’ll run a soft search with no impact to your credit score and scan our panel of lenders for a suitable loan for you, based on the information you’ve provided.
- If you’re matched with a lender and choose to make a full application, they will carry out a creditworthiness assessment. This could include a hard search or Open Banking. Remember, a hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time will cause your credit score to decline.
- If the lender is satisfied with the outcome of their creditworthiness assessment, they will let you know when your money will be sent.
Important: your lender will send you a loan agreement, either before or after the creditworthiness assessment. You should make sure that you’re happy with the terms and conditions and repayment schedule before you decide whether to sign and return the agreement.
Will improving my credit score increase my chances of being approved for a loan?
Having a good credit score could broaden your borrowing options, although it’s important to remember that even those with excellent credit will still be subject to an eligibility check and a creditworthiness assessment, and approval is not guaranteed.
Those with good credit scores could also find that they’re presented with more desirable interest rates, which will reduce the cost of borrowing.
How to improve your credit score
Having bad credit can feel disheartening, but there are things you can do to work towards an increased score.
- Limit the number of hard searches you undergo. You can do this by using a credit broker, such as Growing Power, to help you search for a loan, rather than making multiple applications with different lenders.
- Register to vote.
- Get into a habit of checking your credit report. Incorrect information could damage your credit score and should be reported to your credit reference agency (CRA) as soon as possible.
- Make sure your bills and any current credit commitments are paid on time each month.
- If you have a credit card, you should avoid using it to withdraw money from a cash machine. You should also aim to stay well within your credit limit and keep your credit card utilisation as low as possible.
What to do if you can’t afford your loan repayments
If you’ve taken out a loan that you’re struggling to repay, you should contact your lender.
Try not to wait until you’ve already missed a repayment; reach out as soon as you feel that you’re falling into difficulties.
This may feel scary, but please remember that your lender is there to help you. They will appreciate the fact that you’ve got in touch and will talk to you about any suitable solutions that could be available.
Can you get financial advice for free?
Yes, you can. Whether it’s guidance on the cost of living or support with debts, the following charities and organisations offer free, impartial and confidential advice: StepChange, MoneyHelper, Citizens Advice, and National Debtline.