When struggling with an incessant cash crunch and financial hassles every day, you ought to look for impulsive borrowing decision. A lot of bad credit borrowers find it hard to escape the temptation of availing no credit check loans. They take an instant decision and sign no credit check short term loans without a pause and make the biggest financial blunder of their life.

However, I would like to congratulate you on using financial prudence before signing a bad credit loan. While you read this article, I assume you are smart enough to weigh down the pros and cons of a borrowing decision. This indeed is the right way for bad credit loans.

Know here, why no credit check loans are a complete No.

1. FCA doesn’t approve any credit check loans.

Being a responsible citizen, you should ensure that you take a legal decision. By opting for a no credit check loan, you are risking your credit situation. For FCA authorised lenders never offer any credit check loans. At best, a loan broker can help you locate a soft credit check loan. A soft credit check doesn’t make a footprint in your credit report.

2. Beware of loan sharks

A lot of loan sharks and clone companies are operating in the UK. They offer attractive deals with hidden charge and many are even reported to have used unscrupulous practices to recover the loans. By dealing with a company that offers no credit check loan, you are at risk of dealing with a fake company. So beware of loan sharks before making a decision.

3. Why is a credit check important?

A credit check basically helps lender assess your repayment capacity. When they offer loans after checking the credit score, they basically figure out the risk being involved with the loan. Without a credit check, neither lender nor the borrower would be aware of the succession of the deal. So you should always opt for soft credit check loans.

4. How credit check impacts your credit score?

Every time you apply for a loan to a lender, they send a credit check query to Credit bureau. Based on your account information, the lender decides whether it would accept or reject the application. Every loan query by the lender is reported on the credit report. A query indicates loan appetite and thus too many queries could hurt the score. Every loan rejection further ruins the score. Thus when you apply via a loan broker, your score is saved from further fall. They run multiple requests to several lenders. The lenders assess your credit query as a soft query and thus do not hurt your score.

5. Stay away from instant decision loans

Whether you need payday loans or short-term loans, the borrowing decision should follow a well thought out plan. You should not make an impulsive decision. When you borrow following the loan advisor’s guidance you ought to compare and choose the best deal according to your repayment capacity.