No, to get access to a short term loan, the lender will usually conduct a credit check to see how well you have paid other similar types of credit in the past and make an informed decision on this basis.
However, there are short term loan options where credit scores are not taken into consideration as much, such as using a guarantor loan or securing the loan against something valuable like a house, flat or car. Nevertheless, there will still likely be some credit checking involved since lenders will need to manage their risk and wish to avoid lending to someone with a history of defaults, IVAs, CCJs and bankruptcy.
At Fund Ourselves, we are willing to take a view for people looking for short term loans with poor credit
. So even if you do not have a perfect credit score, we will take other factors into consideration such as your income, affordability and any recent repayments that you have made.
We have a pool of investors who are looking to invest in customers seeking short term loans – and they are willing to accept different levels of risk to maximise their returns.
Will applying with Fund Ourselves damage my credit score?
Getting a loan quote from Fund Ourselves is not likely to affect your credit score as we only carry out a soft search when you ask for a loan quote, however if you go ahead and apply for a loan with Fund Ourselves, we will share this information with the credit reference agency which is likely to impact your credit score.
If you are initially approved, we will run a hard credit check and this will be recorded on your credit file for a period of 12 months. However, it will have no detrimental impact to your score and not affect your ability to borrow money in the future or from other sources.
What could damage my credit score?
Making too applications for short term loans and credit cards could have negative impact on your credit score, because it could make you seem financially stretched or in desperate needs of funds. It is common to have a handful of searches per year, but having hundreds or thousands is not advised.
The main damage that you could do to your credit score is to have too much credit open, such as credit cards or loans, and failing to make repayment on time. Every missed repayment will damage your credit score, but making payments on time for similar products will make your score improve.
What is included in a credit check?
When a short term lender runs a credit check, they will be looking at various details including:
- Full name
- Date of birth
- Any bankruptcies
- All loan, credit cards, and mortgage accounts currently open
- Previous applications searches
- Current overdrafts
- Any missed payments
- Outstanding debt
- Any joint accounts you have with other people
- Existing forms of credit you have available to you
- Defaults on loan repayments
Are there quick ways to improve your credit score?
Yes, if you are concerned about your credit score and looking to avoid being checked in the first place, do not fear, there are some quick ways to improve your score.
For instance, you can add yourself to the electoral register
, since this confirms your name, age and location and this a trust signal for lenders since it confirms your identity.
In addition, you should avoid having too many credit cards or store cards that you do not use – so try closing these if possible.
If you have any remaining credit card or loan debts, trying paying this off in full or closing them completely. Whilst this may not be easy, you can always look at using a 0% balance transfer card to move any credit card debt and pay it off without interest. Additionally, you can use a debt consolidation loan to put all your existing debts together and pay them off in one single, affordable loan.
How Fund Ourselves can help
At Fund Ourselves, we do not want to turn away customers just because of their credit rating. Our innovative lending platform is designed to take lots of other considerations into account and assist those looking for short term credit, regardless of their credit history.As a peer-to-peer lender
, we have a pool of interested investors on hand who are looking to invest in bad credit loans – so they can earn a healthy return on the money they lend out.Our application is completely online
and takes less than 15 minutes to be complete. You will receive an instant decision on the screen and if successful, we can fund up to £500 typically within 1 hour or the same day of applying.