Short term no credit check loans

Short term no credit check loans are loans that do not require a credit check, they only require a status check.

A credit check is when a lender will carry out a teletrack check with a credit reference agency to find out about a borrowers credit score. This process takes time and delays the process of approving loans. It is a process predominantly carried out by prime lenders.

Short term no credit check loans are predominantly carried out by  subprime lenders, lending to those with a bad credit score. Although no credit check is carried out, the subprime lender still needs to carry out a certain amount of due dilligence.

Short term no credit check loans require a status check

They carry out what is known as a status check. A status check is where the lender will make enquiries to confirm that the details completed on an online application form stack up. They may phone an employer to make sure that the bad credit borrower is in full time employment.

The lender will require you to provide documentation confirming your identity in the form of a valid driving license or a passport.

Lending purely on the basis of a  status check carries higher risks for the lender. As a result the amount available to borrow is less, the length of the personal loan shorter and the interest rate higher than in prime lending.

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