Posted on: November 4, 2020 Posted by: admin Comments: 0

There is another kind of payday loans available where no credit check is required, which is also a kind of short term loan offered by many lenders in the UK. However, in reality for this kind of loan too, a lender will make soft credit search in case he feels suspicious about the borrower.

Therefore it means, your credit score will remain protected from detrimental impact of any hard credit search.  Also, few other credit providers cannot check historical soft searches.

LoanPig offers various short term loans and other loans to UK residents and by visiting their website you can get all details about them. You can also get offer for payday loans and they are FCA approved too. Also, if they are unable to offer you a loan due to any reason then can always introduce you to few other lenders to get you necessary loan.

What is credit check?

Your credit check is kind of reviewing all your information which is publicly known about your current financial situation. Most lenders use this information in order to assess whether it is risky to lend any money to you.

Your lender will use this information to assess whether you are right person to lend and if at all your loan is approved then at what rate of interest you must pay.

What is soft credit check?

Soft credit checking is a general enquiry about your credit file for looking certain basic information about your credit report. Most lenders perform this exercise to determine how much success he will be to make business out of your loan application, without conducting a detailed examination of your complete credit history.

Usually, these soft searches may not be visible to any other companies, which mean they will not have any impact on the credit score.

What is hard credit check?

In case of hard credit check, lender will try to review almost everything that is available on the file of your credit report. Usually such kind of credit check is performed by any bank or a building society in case you ever apply for credit.

In such case, they will look at almost every kind of account that you have and where you are making regular payments etc. They also check the credit file to find if you ever have missed any of your due payments.

Hard credit checks will remain on your file at least for one year and every company in future who look at your file can see who had performed all those checks and for what reason.

What does a lender look for?

Following is a little information that a lender will try look at while conducting any credit check:

  1. All of your loans, mortgages and credit cards that you presently have opened, or have closed during any time in the last 6 years.
  2. Any kind of overdrafts lying pending on your current bank account
  3. Complete details about your previous missed credit repayments
  4. Complete details of your last County Court Judgement
  5. Any previous bankruptcy

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