‘Soft Credit Match’ technology matches your profile with our industry-leading panel of Financial Conduct Authority (FCA) approved direct lenders without leaving any mark on your credit record.
What is the difference between a lender and a broker?
If you are looking for a loan, you may wish to choose between applying directly to a lender or using a credit broker. If you are satisfied that you have a good credit rating, picking the lender with the cheapest APR and applying directly is a preferable option for most.
For customers who have been declined, or who have a low credit score, knowing where to apply can be more difficult. Credit brokers can help in this situation. Where a direct lender can only accept or decline any application for their product, a credit broker has a panel of lenders and can match customers of all different profiles.
A credit broker can save some customers a lot of time and effort that would be spent applying to lenders individually. As lenders soft search, using a broker to search the market for you won’t impact on your credit report.
Is a bad credit short term loan right for me?
Direct short term loan lenders offer a variety of rates and terms. If you have any bad credit in the past six years, you are likely to be declined by high street banks; however, UK short term loans may still be an option for you. You can apply for loans online †
Do short-term loans feature a credit check?
The short answer to this is yes. If you apply for a short-term loan in the UK, The Financial Conduct Authority requires the direct lender to perform a credit check on you. There is no way around this, no matter what some companies would lead you to believe. However, this is not as bad as it once was.
While previously, this would have likely made it difficult for people to get short-term loans if they had a bad credit score, many lenders are now changing how they assess a person’s suitability. If a company is advertising short term loans with no credit check they should be avoided.
Understanding that there are many people with bad credit reports who are wrongly penalised, many lenders now offer short term loans for people with bad credit in the UK. As a result, an increasing number of people are passing credit checks despite having poor credit scores and are therefore being given equal access to short-term loans when they need them.
How can I increase my credit score?
If you are looking to improve your credit report, there are a number of steps that you can take to increase your score over time.
Checking your credit report is a good place to start. This allows you to make sure that the information that is held about you is correct. If you find any errors, you can contact the credit reference agencies and request that the error is corrected. Many companies will offer a free credit report so avoid signing up so paid for services that are unnecessary. Adding yourself to the voter’s roll is also a good idea.
An obvious area to focus on is to ensure that you make repayments on time. If you are late, miss a payment or pay under the required amount, this will be reported to credit reference agencies and reduce your credit score. It is not just credit accounts that report to credit reference agencies. Mobile phone and utility companies will also report to them.