When it comes to obtaining a short-term loan, many people are concerned that their credit history is going to hold them back from being able to get the credit that they need. While it is true that a credit check will be performed by the lender when taking out a payday loan, these are typically less rigid and strict than those performed by traditional financial lenders, such as banks and building societies. You may have heard or seen lenders advertising a no credit check payday loan, but the simple fact of the matter is that these sites are misleading you.
According to UK financial regulations, every lender in the United Kingdom must perform at least a basic identity check, which is done by using your credit file. If you are worried that your credit will hold you back from obtaining a short-term loan, then Cash Carrot can help that you to a lender who is prepared to meet your requirements. When it comes to credit checks, there are two types that are performed. The first is known as a hard check, which leaves a footprint on your record that can be seen by other lenders looking at your file. The second is known as a soft search, which is typically used to check your eligibility for a loan and does not leave a permanent footprint on your credit record.
It is important to remember that if you have several searches performed on your credit record in a short amount of time, this can adversely impact your score and reduce the likelihood of being approved for a short-term loan. If you have a bad credit score, there are several steps that you can take to improve it. The first one is to get yourself registered on the Electoral roll, which can see your credit score increase rapidly in a short period of time. You should also make sure that you meet your monthly repayment obligations. Taking out a payday loan can help improve your credit score if you repay on time.
Payday loans and short-term loans are ideal for those with a poor credit score and will work out to be much easier to obtain than those offered by other financial institutions, such as banks, building societies and credit cards. Cash Carrot works with many different lenders across the country, which means that the likelihood of you being approved for the amount that you need to borrow is in your favour. As long as you can demonstrate that you are able to meet your repayment obligations on time, then a bad credit score does not necessarily have to work against you.
When you turn 18 years old in the United Kingdom, you are automatically assigned a credit report. Until you make use of any credit services, your score will remain unchanged and make it difficult for lenders to judge your trustworthiness. If you are new to the world of credit, then taking out a payday loan is a fantastic stepping stone to establishing your credit report. Remember, missing payments or failing to pay on the payment date can negatively impact your credit score. If you pay back your loan on the agreed dates and in full, then your score will increase.
Remember, if you are worried about your credit score and the likelihood of being approved for a payday loan, then you should never use the surface of a broker or lender who advertises a no credit check payday loan. As noted above, there is no way that you can obtain credit without first having a credit check performed. These types of marketing schemes are designed to suck and those who are worried about their credit score and in desperate need of financial assistance. The deception is clear from the start, so how much can you actually trust any lender who misleads you?
Getting access to the money that you need with a payday loan or a short-term loan is easy when you use Cash Carrot. All of the comparisons and guesswork are taken out of the equation for you and you will be matched with a lender who suits your requirements. Don't let the fear of your poor credit hold you back from getting the help that you need.