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Is No Credit Check Payday Loan a Myth or Reality?

by Jemma Madison Financial Writer
To reveal the mystery and know the authenticity behind no credit check loans one must know- why is a credit check important? This check is necessary to avoid trouble for both- the lender and the borrower. Payday Loans with bad credit also require a credit check.

What is a Payday Loan?

Financial distress can knock you down anytime. You need to have an alternative to manage the additional expenses. You cannot use your savings every time to cover these expenses. Payday Loans have rising popularity amongst the people of Britain. These provide cash advances for emergency expenses instantly. Having various uses these loans are high in demand.

What is a No Credit Check Payday Loan?

A No Credit Check Payday Loan is a myth. This loan type is nothing but illegal. Even lenders who are willing to provide you with these advances will eventually perform a soft credit check. As per the Financial Conduct Authority (FCA)- a credit check is obligatory, while a lender is processing any type or kind of loan.

What is a Soft Credit Check, will it affect My Credit Record?

As we already read above,  a credit check is necessary when providing a loan. To make the process less complicated- lenders use soft credit checks for payday loans at bad credit. The soft check doesn’t leave any fingerprints on your credit report. It protects your credit record from further damage.
A soft credit check is a brief check of your credit background and financial history.

Can One Get a Payday Loan with No Credit Check in the UK?

Since the Financial Conduct Authority (FCA) governs the lending landscape of the UK, no lender can offer a payday loan without a credit check. However, it's important to perform a soft credit check in order to fulfil the FCA requirements and guidelines.

Authorities can impose a penalty on any lender who is providing loans illegally. Taking a loan from the lender who doesn't follow the rules can be a risky business. The debt stress itself is enough, and a further complication can boast the stress.

Is It Safe to Have a No Credit Check Payday Loan?

Since a no credit check loan is unlawful and unsafe, it's better to restrain yourself from it. There are cases when one has an existing credit history with a certain lender. In these cases, lenders generally perform only a soft credit check.

A certain level of credit check is important when a lender decides to provide a loan to any person. This ensures the safety of both the lender and the borrower.

Uncalled expenses are hard to control. A payday loan will provide you with cash until your next payday. Don’t wait for your salary to get credit, instead take these loans for unexpected expenses. At Loan Princess, we intend to help you find the lender who is reliable and trustworthy. It’s important to follow the guidelines of FCA as it will protect you from any type of loan scam or fraud.

Please note that late repayment of the loans can cause you serious money problems. For more information, go to Moneyadviceservice.org.uk.

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About Jemma Madison Junior   Financial Writer

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Joined APSense since, October 16th, 2017, From London, United Kingdom.

Created on Apr 27th 2019 05:46. Viewed 654 times.

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