The economy of the country is majorly impacted by the debt situation of individuals. If more individuals are delinquent or go bankrupt then it adversely affects the economy of the entire UK. This is the reason that the government wants lenders to lend in a responsible manner and for regulating the working of the lenders, the government has formed the Financial Conduct Authority or FCA. One of the regulations of the FCA is that no lender can provide a loan without conducting a credit check of the lender. This is the reason that it is not possible to get no credit check loans in the UK.
What happens when you have a bad credit score?
First of all bad credit may not be a fault of yours, because the current state of the economy is such that financial situations of a person are unpredictable. You may be in a cushy job with a high salary one day and the next to be either laid off or your salary cut sizable. This can ruin even the most carefully planned budget and cause you to be unable to pay your utility bills or your loan instalments on time. This could land you in bad credit with the rating agencies. Then again a negative mark placed on your credit report will stay there for at least 6 years. During that time, you may have found another good job with a decent salary. However, traditional and mainstream lenders do not understand this and simply refuse to give loans to people with bad credit.
What to do if you have bad credit?
In spite of the fact that traditional lenders do not provide loans to people with bad credit, there are many modern-day specialist lenders who do. Although you cannot get bad credit loans no credit check even with these specialist lenders they do go soft on your credit check. They don’t just take into account your credit score, but also consider other factors like your current income and expenditure and your ability to repay the loan that you are taking. What happens if you take a loan that becomes difficult to repay? The answer is simple your credit score will get worse.
Why approach loan brokers?
Fortunately, however, there are loan brokers in the UK who employ financial advisers who provide loan advice free of cost. Although even loan brokers cannot help you to get any credit check loans without guarantor, they can definitely help you to get loans for bad credit at a reasonable and affordable rate of interest. At the same time, the financial advisers employed by them analyse your financial situation along with your current monthly income and expenditure and suggest the loan amount that you will be able to repay comfortably. This way you can be sure that you will not get into further trouble due to the loan that you are taking. This is the reason that loan brokers are becoming popular with the average borrowers in the UK.