utorak, 07.02.2012.
Are There Problems In Taking Out A No Credit Check Loan?
People with adverse credit history know that most high street and prime lenders will not lend them any cash. They may or may not have the ability to pay the money back. There are decent people that have every intention of repaying a loan but their lives are too disorganized or their employment situation is too volatile for them to keep up with repayments.
Then there are people who have problems with alcohol or narcotics that want to borrow cash and have absolutely no intention of repayment. They are just looking for a way to support their habit.
When you put a individual in a situation where they know they can substantiate their wages but they know they will fail any sort of credit search, they resort to the internet and searches on Google for no credit search loans.
The reality is while many lenders are willing to lend to individuals with adverse credit history, they will do it only under certain conditions, and usually with very poor terms. Lenders have to do credit searches to verify a individual is who they say they are. This is especially true online as no known 3rd party will ever see originals of their proofs of identity and proofs of home address. If you could get a credit agreement and give a completely false date of birth and other personal details, it would make it very difficult for the credit agreement to be enforced.
When you apply for car insurance or other financial related product, these parties can do a status check on an person which is a search to their credit file. This is not however saved as an application for credit.
A financial institution may have a legal obligation to know exactly who you are before they send you funds.
Some sub prime lenders may do a status check instead of a credit check, but the vast majority of lenders and suppliers of consumer finance do a credit check. As soon as you are asked for your last 3 years address history and your date of birth this is usually a sign that a credit check is being performed.
A finance company is not allowed to do a credit check on you without your permission. An example of where you can refuse a credit check is when you move into a new home and you call the electricity company to tell them you are responsible for the charges. If they ask you your date of birth and your previous home address, you tell them you do not agree to a credit search as it will knock down your score with other potential lenders. Then they can’t do a search on you.
You are likely to be rejected for a loan or other credit agreement if you have missed payments, default notices or County Court Judgements. Defaults and County Court Judgements stay in your credit report for 6 years. If your defaults or judgements are at a previous home address that you lived over three years ago it may be possible to qualify for a prime loan.
An example of a credit agreement that is simple to qualify for is a sim only contract mobile phone. The network provider is only exposed to the cost of the calls you make should you default, and since the real cost of telephone calls is very insignificant it is worth the risk for them. Further details here
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