Short Term Loans With No Credit Check

If you need to borrow money but you have bad credit, you might have thought about searching for a ‘no credit check short-term loan’.
Our guide explains why it’s not possible to get a short-term loan in the UK without a creditworthiness assessment and explores some other options that might be available to you.

What is a short-term loan?

A short-term loan is a type of borrowing where you pay the money back over a set number of months or years.

The lenders on the Little Loans panel offer short-term loans between £100 and £10,000, with repayment terms ranging from 3 to 60 months, depending on the amount of money you apply to borrow.

What can a short-term loan be used for?

A short-term loan could be a suitable solution to a tricky financial situation that you simply can’t afford to pay for upfront, such as a broken boiler; the unexpected expense of a dental bill; urgent home repairs; or car maintenance to get your vehicle back on the road.

Is a payday loan a short-term loan?

While a payday loan is a form of short-term borrowing, there is one key difference that separates it from a short-term loan.
When you take out a payday loan, you’ll usually need to repay the full amount, plus interest, within a month. A short-term loan allows you to spread the cost of borrowing across several months, which could make your monthly repayments more manageable for you.
You should be aware, however, that the longer your loan duration the more you will pay in interest overall. Monthly repayments on a shorter duration loan will be higher, but you will pay less interest.

Please note that Little Loans does not work with any lenders of payday loans.

Bad credit short-term loans

If you have a history of bad credit, you might be concerned that this will have a negative impact on your chances of being approved for a short-term loan. This fear might lead you to wonder whether you could get a short-term loan without a credit check.

While poor credit history could mean that you’re faced with fewer borrowing options and higher interest rates, there are a number of UK-based lenders, including several on the Little Loans panel, who specialise in short-term loans for people with bad credit.

For your peace of mind, please know that Little Loans only work with lenders who are authorised and regulated by the Financial Conduct Authority (FCA).

Can I get a short-term loan without a credit check?

Regardless of the type of loan you’re applying for, the FCA requires all responsible lenders to carry out a creditworthiness assessment on potential borrowers. These checks will include either a hard search or Open Banking and will give the lender an idea of how likely you’ll be able to repay the money you owe.

Undergoing a creditworthiness assessment may feel daunting, especially if you have a history of bad credit, but it’s crucial to remember that these checks are in place to protect you. The very last thing a lender wants is to put you in a position where your finances are strained.

Potential borrowers should be cautious of applying with, or accepting an offer from, any lender claiming to provide ‘no credit check’ or ‘guaranteed’ loans’, as they are likely to be working outside of guidelines set by the FCA.

Could you explain a little more about Open Banking?

Of course. Many lenders, especially those willing to consider applications from people with poor credit history, are choosing to use Open Banking as part of their creditworthiness assessment.

Open Banking is a secure procedure, which requires you to give consent to your chosen lender, allowing them read-only access to your account. This provides them with an insight into your recent spending and repayment activity, which could offer a more up-to-date overview of your financial situation.

Can I check my eligibility for a short-term loan?

Many credit brokers and lenders offer customers the opportunity to check their eligibility for a loan before they make a full application. An eligibility check usually consists of a soft search, which will not harm your credit score in any way and will only be visible on your credit file to you and the company who carried out the search.

The Little Loans eligibility checker is free to use and can reveal your chances of approval in just 60 seconds.

Can I search for a short-term loan with Little Loans?

You can search for a short-term loan using the Little Loans credit broking service if you:

• Are over the age of 18;
• Are a UK resident;
• Have a UK bank account and valid debit card; and
• Have a regular source of income paid into your bank account.

How does the Little Loans process work?

Below is a simple run-down of everything you can expect from the Little Loans journey.

1. Our online form should take no more than five minutes to fill out. You’ll need to let us know how much money you need to borrow, how long you’d like to repay it, and some other key information, such as your address history, income, and employment status.

2. In just 60 seconds, we’ll use the information you’ve provided to run a soft search and scan our panel of lenders for a suitable short-term loan. A soft search will not affect your credit score.

3. If we’ve been able to match you with a loan, you’ll be redirected to the lender’s website. You can find out more about the loan and decide whether you’d like to make a full application. Remember, our credit broking service is free to use, and quotes are no-obligation.

4. At this stage, the lender will complete a creditworthiness assessment, which will include a hard search or Open Banking. Please note that a hard search will remain on your credit file for up to 12 months, and if multiple hard searches are carried out within a short period of time, your credit score will be negatively affected.

5. If the lender is satisfied with the outcome of their creditworthiness assessment, they will formally offer you the loan.

Important: you should make sure you’re happy with the terms and conditions of your loan offer before you decide whether to sign and return the credit agreement.

I’ve been approved for a short-term loan; when will my money be sent?

Some of the lenders on the Little Loans panel could send your money on the same day as your application is approved. The time it takes for the money to show in your account will depend on your bank’s policies and procedures.

What happens if I can’t afford my short-term loan repayments?

If you’re finding it difficult to keep up with the repayments on your short-term loan, you should contact your lender as soon as you can. They might be able to suggest some options that could help to reduce the pressure while you get your finances back on track.

I need advice on my debts; who can I speak to?

Talking about money and debt can feel uncomfortable, but please know that you have nothing to be ashamed of, and reaching out for help is the first step towards getting your finances back on track.

The following charities and organisations provide free, confidential advice on a range of financial topics: StepChange, MoneyHelper, Citizens Advice, and National Debtline.