At The Lenders List we only work with direct lenders thus all our guarantor lenders are registered in the UK, have a valid consumer credit licence and follow guidelines set out by the Financial Conduct Authority (FCA). You should always be cautious of websites and lenders that advertise the term “no credit check loans” as often these sites or lenders may charge an upfront cost or pass on your details to various different firms. Our list of guarantor lenders will always complete a credit check and affordability checks to ensure that you only get approved for a loan that you can afford to repay.
Is there such a thing as a no credit check loan?
In our view you should stay away with lender who advertise as “no credit check loans”, as all reputable lenders will carry out a credit search with one of the two main credit reference agencies in the UK (Experian and Equifax) this is to ensure that the lender can minimize the risk when lending and to ensure that the loan that they are providing is suitable for you. Companies that advertise as no credit check loans often don’t follow the numerous guidelines set out by the Financial Conduct Authority.
Why is a Credit Check Important?
Fundamentally, a credit check is used to protect both the lender and the borrower (yourself). A credit check is used primarily by the guarantor lender to establish if you have the ability to repay the credit amount that’s being loaned to yourself. A credit score and rating is a simple way that lenders are able to build up a profile about yourself and your financial history, although it’s an important part in the process of applying for a guarantor loan it’s not a single element in the decision process for the lenders. If you’re worried about your credit rating you should also note that Guarantor lenders will also look at other elements such as your job status, current debts and marital status.