One of the important questions when looking at payday loans is, do payday loan check your credit? At Payday Loans UK we do not, and neither do most other payday loan providers. The reason is not that we are not concerned about whether you are likely to pay back the loan, it is just that other criteria are seen as more important.

It doesn't matter if your credit rating is good or bad, you can get a payday loan with Payday Loans UK.

Why No Credit Check?

So why do Payday Loans UK not run a credit check? The reason is that it is such a short term loan. This means that we only enquire as to whether you have a job that pays monthly, above a certain minimum amount of £750 net. After all, it is when you are next paid that you will be due to pay back the loan. Whether or not you have been able to pay loans back in the past should have no bearing on this.

The main advantage of offering no-credit-check payday loans, other than the fact that it doesn’t matter what your credit rating is like, is that a decision can be made much more quickly. This is often very important, as if you need to make use of a payday loan, you will usually need the money as soon as possible. At Payday Loans UK, generally speaking you should have the money in your account on the same day that you apply, assuming that it is approved.

It is important to note, however, that this does not mean that payday loans are only suitable for people with bad credit ratings. It is usually not possible to get a short term loan quickly from any other lender apart from payday loan providers, so payday loans are just as useful to people with good credit ratings as they are to people with bad ones.

Fast Payday Loans

As already mentioned, one of the main benefits of not having to perform a credit check is that fast payday loans can be offered. The only other way of getting money that quickly, in order to acquire emergency cash, is to take out an unauthorised overdraft. This is not a good idea however as they tend to cost a lot more than payday loans. Many banks make charges daily as well as monthly for unauthorised overdrafts and the costs can quickly mount up.

Conversely, when you take out a loan with Payday Loans UK, you will know exactly what you have to pay back and when. This will be a similar amount to what you would have had to pay over a longer period of time with a normal bank loan.

However payday loans should never be used as an alternative to a conventional loan, as over time the costs will accumulate. This is why payday loans are only suitable as a form of short term lending. If people with bad credit try to take advantage of not having to be subjected to a credit check but will not be able to pay back the loan on time, this will only mean that they add to their debt burden. When used properly however, payday loans are a very good short term solution to financial problems.

Tags: credit check, no credit check, Payday Loans, Payday Loans UK, short term tending, unauthorised overdraft

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Ken Heading keeps up to date with all the financial news in the UK, particularly as it affects payday loans, and enjoys writing on this subject.

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