Loan companies advertising No Credit Check Loans
No credit check loans is another consumer generated search term, used on the internet by those who are in need of a loan but are aware of their bad credit rating or have been declined elsewhere. This has caused an increase in some loan companies advertising no credit check loans as products, when in reality no such product really exists.
A credit check is to check your credit worthiness as to whether you are likely to repay your debts. Responsible lenders will do a credit search with the main credit reference agencies Experian, Equifax and Call Credit. This credit check is not only to safe guard themselves from the risk of non repayment but also to ensure that the customers that they do lend to are likely to be able to repay their debts and not suffer a debt problem or worsen a debt problem as a result of being approved for credit.
Given the above there are some lenders that are willing to accept applications from those that have a less than perfect credit score as a result of a credit check, these companies look at your current circumstances and make a decision based on affordabilty, such as your current income and outgoings. It is important that if you are applying for a loan with one of these companies that you are completely sure that you can afford the loan and are completely honest with your application, failure to repay your loan will have a serious impact on your credit rating.
It is extremely important not to be mislead when searching for No Credit Check Loans, if you come across a company on the internet advertising that they do offer loans with no credit checks it is likely that they are unregulated and therefore do not have their customers interests at heart, which could end up being expensive for you and creating or worsening a debt problem.