Who Provides No Credit Check Loans?
Then there are people who have problems with drink or drugs that want to borrow cash and have absolutely no intention of paying it back. They are just searching for a way to support their addiction.
When you put a person in a situation where they know they can prove their personal income but they know they will fail any sort of credit search, they resort to the internet and searches on Google for no credit search loans.
The reality is while many lenders are willing to lend to individuals with adverse credit history, they will do it only under certain circumstances, and usually with very poor terms. Lenders have to do credit searches to verify a person is who they say they are. This is particually true online as no trusted 3rd party will ever see originals of their proofs of ID and proofs of residential address. If you could get a loan and give a completely false date of birth and other personal details, it would make it very hard for the loan to be enforced.
When you apply for car insurance or other financial related product, these companies can do a status check on an person which is a search to their credit file. This is not however saved as an application for credit.
A financial institution may have a legal obligation to know exactly who you are before they send you funds.
Some below prime lenders may do a status check opposed to a credit check, but the vast majority of lenders and suppliers of consumer credit do a credit check. As soon as you are asked for your last 3 years address history and your date of birth this is usually a sign that a credit check is being executed.
A finance company is not allowed to do a credit search on you without your consent. An example of where you can refuse a credit search is when you move into a new house and you call the electricity supplier to tell them you are responsible for the bill. If they ask you your date of birth and your previous home address, you tell them you do not consent to a credit check as it will knock down your score with other potential lenders. Then they can’t do a check on you.
You are likely to be declinded for a loan or other credit agreement if you have missed payments, defaults or County Court Judgements. Defaults and County Court Judgements stay in your credit record for six years. If your defaults or judgements are at a previous address that you lived over 3 years ago it may be possible to be accepted for a prime loan.
An example of a credit agreement that is simple to qualify for is a sim only mobile phone contract. The mobile network is only exposed to the cost of the calls you make should you default, and since the real cost of telephone calls is very insignificant it is worth the risk for them.
Some companies use systems called Hunter, Fraud scan and Detect, which search your complete six years credit history and if this is the case you are likely to not qualify for the loan which in some case can be heartnbraking especially if you are in dire need for the money.