There is a massive demand on the web for no credit check loans. Individuals with bad 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 chaotic or their employment situation is too erratic for them to keep up with payments.
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 searching for a way to support their addiction.
When you put a person in a situation where they know they can substantiate their personal income but they know they will fail any sort of credit check, they resort to the internet and searches on Yahoo for no credit check loans.
The reality is while many lenders are willing to lend to people with bad credit history, they will do it only under certain conditions, and usually with very poor terms. Lenders have to do credit checks to verify a person is who they say they are. This is especially true online as no authorised 3rd party will ever see originals of their proofs of ID and proofs of residential 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 a spread bet account 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 money.
Some sub prime lenders may do a status check instead of a credit check, but the vast majority of lenders and suppliers of consumer credit do a credit check. As soon as you are asked for your previous 3 years address history and your date of birth this is usually a sign that a credit search is being performed.
A company is not allowed to do a credit search on you without your consent. An example of where you can refuse a credit search is when you move into a new home and you call the electricity company to tell them you are responsible for the bill. If they ask you your date of birth and your past address, you tell them you do not consent to a credit search as it will knock down your credit score. 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, defaults 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 easy 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 not pay, and since the real cost of phone calls is extremely small it is worth the risk for them.
Some companies use systems called Hunter, Fraud scan and Detect, which search your entire six years credit history and if this is the case you are likely to not qualify for the loan which in some case can be heartnbraking especially if you are in dire need for the money.