Extramile Finance

Same day loans are small emergency loans that help tide you over during financial emergencies.

Unexpected expenses could materialize at any time and therefore having a sufficient emergency cushion is recommended. It is enjoined that you have an emergency corpus of at least three months’ worth of living expenses. The greater the size, the better.

Well, in spite of a sufficient emergency cushion, people often face a cash shortfall. As a result, it becomes necessary to borrow from online money lenders in the UK.

Same day loans come with an exiguous sum of money. Though most lenders claim to lend up to £1,000, the fact is that they cap on £500. As these loans are paid off in fell one swoop, lenders do not approve an application for a large amount of money.

Your credit rating should be good, but it is not a necessity. Small loans are generally aimed at subprime borrowers, but what if your credit rating is too bad?

A no credit check facility could help you

Subprime borrowers do not struggle to apply for same day loans as long as their credit scores are not too bad. If lenders find your credit rating in the range of very poor credit rating, they might repudiate your application, and if any lender signs off on it, they will charge exorbitant interest rates. Bear in mind lenders will run an affordability check regardless of the debt you are applying for.

An affordability check includes a thorough perusal of your credit report. It includes hard search inquiries. As they leave search footprints, your credit score will plummet by a few points. However, the effect of this decline is temporary which is fixed immediately after making a few payments of the debt.

If your credit score is already very poor, you might be worried about the damage to your credit rating. In case of a rejection, your score cannot improve immediately. Therefore, you might feel inclined to apply for same day loans with a no credit check from a direct lender.

It means a lender would not run a credit check while deciding on your affordability. As a result, no hard search footprints will show up on your credit report. So, your score will remain intact.

How a lender determines your affordability?

Indubitably, a credit score check is essential. It reveals your past payment behaviour. You will be considered a less risky borrower if you manage to pay off your debts on time, but if your credit score is not good, your credibility will be called into question. A very poor credit rating insinuates that you made defaults or missed payments, and obviously, you would continue to make defaults in the future now. This is why they hesitate to lend you money.

But these concerns vanish when you apply for the same day loan without a credit check. It means no hard search inquiries will be made, and lenders would never be able to know your exact credit score, but remember that no lender can approbate your application without running an affordability check. Here comes the role of your income.

Lenders would carefully examine your repaying capacity by taking into account your income sources. They would ensure that your budget has wiggle room to bear the burden of additional debt.

Many people struggle to clear their dues because they find themselves short of cash. There is no doubt it can be challenging to pay off the whole debt in fell one swoop on the due date. While a responsible lender would carefully evaluate your income sources, you should also take stock of your repaying capacity. Be honest and transparent about your earnings and expenditures.

How to obtain a small online loan without a credit check?

It can be certainly challenging to get approved for these loans. A golden rule of thumb says that you should carefully research the lender. Not all lenders provide these loans, so make sure that you are not rejected just because the lender you are applying to does not provide no-credit check loans.

In addition to research, you should focus on the following things to obtain approval for a small online loan without credit checks:

• Make sure that you fill in the application form with accurate details of expenses. A lender would want to know the number of dependents, average expenses, and any other debt you owe. It is vital to be realistic, so you do not end up borrowing more than your affordability.
• You may also need to provide your bank statement. Lenders generally ask for a three to six-month statement to evaluate whether your budget has the capacity to bear the debt cost as they are paid in full within full.
• Once you submit the application form, you will need to wait for some time. In the meanwhile, your lender will quickly go through your application.
• If everything seems all right, the approval is given without further ado. Money will be transferred directly to your bank account which you can use the way you want. Lenders do not restrict the way you want to employ it.

Some lenders might run soft credit checks at the time of deciding your affordability. Note that soft credit inquiries do not get recorded in your credit report and, thereby cannot be seen by other lenders. A soft credit check is made to know your contact details. They do not help lenders know your credit score. Since they do not appear in your credit report, they do not lower your credit points.

The final word

If your credit score is abysmal, you would certainly feel disposed to apply for a loan without a credit check. A few direct lenders provide same day loans with no credit checks, but remember that you will be charged high interest rates. Such loans carry even higher interest rates than bad credit loans because the default risk is too high. You should borrow money only if you urgently need it.