Finding a lender prepared to loan money without any form of credit check or UK lenders that do not perform credit checks on loan applications is pretty hard these days unless you are able to secure the loan in its entirety. However, there are still options available – a few of the main ones are listed below.
Designed for those with a bad credit history who are struggling to find credit elsewhere and who may have already been refused a loan – often more than once. You won’t need to be a homeowner or have any other form of property to secure against a guarantor loan, instead of providing security you will be asked to provide details of someone who will act as guarantor for the loan – this can be anyone you choose but usually parent, relation or close friend … someone who knows you better than any credit check can. This guarantor will simply confirm to the lender that he or she will pay off your debt if you fail to do so. If you believe you can get a suitable guarantor you should be able to get a loan … simple as that.
Even in this case the lender will usually still look at the applicants credit report – not to credit score them but to check they are who they say they are and to ensure there’s no current bankruptcy or IVA – no other information on the credit file will be taken into account.
You’re thinking you have to own a house to get a secured loan right? This is not necessarily the case although if you do own a property with enough equity to secure the loan it should be relatively straight forward to obtain finance even with a bad credit history and often at a competitive interest rate too. This is because the lender will take a charge on your property which allows them to sell it and repay the loan if you do not keep up the repayments. In other words they are assured of the loan being repaid.
Setting up a loan secured on your home isn’t a five minute job either – it can take time and if you’re looking for a quick fix it may not be the solution for you.
A very fast alternative to this is a logbook loan. This is a loan secured on your car of any vehicle which has a logbook. A logbook lender will loan against the value of the vehicle which must meet certain criteria (maximum age and clear or nearly clear of finance for starters). It’s very quick and simple – apply online, drive your vehicle over to a local office, hand over your logbook which will be kept by the lender until the loan is repaid, sign the paperwork and drive off with your cash. The loan can be sorted out often within 24 hours and you keep and continue to drive the car whilst repayments are being made after which time the logbook is handed back to you.
Sound a great way to get hold of a fast cash loan but beware – interest rates can be very high so make sure you research very carefully to ensure it’s the right option for you.
Another option is a pawnbroker loan whereby you can borrow against any item of value you own – jewellery, watches, art, electrical goods, computers, cameras … almost anything at all. Simply take the goods into your local pawnbroker shop, agree a sum of money and walk away with the cash. The pawnbroker will keep the item which will be returned once the loan is repaid or sold if it is not.
Doorstep loans are cash loans that are delivered to your door by a local agent … a real human being! The repayments are collected each week in the same way. Because you talking about small sums of cash (often a maximum of £500 or so) and because the repayments are in small, manageable amounts that are spread over an agreed period that are collected each week from you in person these loans are available to those who have a really bad credit history, CCJs etc … as long as you can comfortably afford the repayments. Interest rates are often high to reflect the increased risk though.