The Short Answer:
It’s one of the most searched for phrases in the loan industry. Is it still possible in 2021 to get a loan without being credit checked? No it isn’t. Some companies use their apparent lack of credit checking as a marketing tool. Keep an eye out for those companies. Every lender in the country has to credit check each and every potential customer since the Financial Conduct Authority (FCA) took over the industry in 2015.
The Long Answer:
Back in the day, bank managers were real people in real branches with real money. The odds were you were known to him or her in some capacity or other. Part of his job was to weigh up the risk you posed as a borrower. He would then decide if and how much he was going to lend you and at what rate. His view of your risk profile would set the rate for your loan.
Now that we have a population of 70 million and rising your trusty old bank manager no longer exists. Even if he did he’s very unlikely to know who you are amongst his thousands of other customers. Enter credit checking and scoring. It’s really the only way a stranger can get a feel for who you are and how likely you are to repay their money. Everyone credit checks these days but that’s not necessarily a reason to worry if you know your previous repayment history has been less than marvellous. Some lenders set their score pass mark low enough to include as many people as they need. Others don’t. If you see someone advertising ‘bad credit loans’ or ‘adverse credit available’ you will know they have set the bar particularly low and they’ll be worth applying to.
Soft Searches
The 21st century comes with one or two new facilities in the credit world. One of these is the now ubiquitous ‘soft search’. A soft search is a type of credit search which doesn’t leave a footprint on your credit file. A footprint means other lenders can see how many and who else has been searching your name at your address. Typically it isn’t a good thing to have lots of searches registered against you. It makes you look like you’re applying for credit everywhere and getting turned down. Lenders don’t like that. A soft search will give you an idea of whether you will be given credit and it won’t alert others to your activities.
So How Do I Get a Loan Without Being Credit Checked?
To conclude, it is not possible to get a loan without being credit checked. Everyone has to credit check whether they want to or not and whether you like it or not. If they don’t, they will very quickly hear from the FCA and could easily lose their licence to trade. Keep your eyes peeled for ads which mention bad or adverse credit as they will have lower scores for acceptance and keep up the repayments. If for some reason you can’t, ring the lender and explain why you can’t pay. Never just leave it. For more help on repaying debt click here.
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