When you need a short term loan to cover an emergency expense, it’s important to be aware of all the options available to you – and this includes no credit check loans from direct lenders and brokers. Having a low credit score can make it more difficult to be approved for credit, and this can cause people to look for payday loans from direct lenders with no credit check. However, offering payday loans with no credit checks in the UK goes against the guidelines of the Financial Conduct Authority (FCA).

On this page, we will discuss the regulations surrounding payday loans from direct lenders with no credit checks versus the short term loans with no credit checks that you may find via a broker. We will also discuss the potential risks involved in applying with a ‘true’ no credit check loan direct lender in the UK, as well as the alternatives to bad credit loans with no credit checks that are available to you. Ultimately, we hope to provide you with the information you need to decide whether any no credit check loans in the UK that you may come across are the best choice for your finances.

How much do you need?

£300 £1500

For how long?

Apply Now

Month 1


Month 2


Month 3


Month 4


Month 5


Month 6


This is for illustration purposes only. Your repayment schedule will be confirmed during your application

*All applications are subject to affordability checks*

Representative example: Borrow £300 for 3 months / Interest payable £154.37 / Total amount payable: £454.37 in 3 instalments / 3 payments of £151.46 / Representative 1296.5% APR / Interest rate 292% per annum (fixed) / Maximum APR 1625.5%

Compare short term loans on Clear and Fair

As a new customer the minimum repayment period is 3 months and the maximum is 6 months. Additional options may be available to you as a repeat customer.

The Rules on No Credit Check Loans in the UK

In the UK, the financial industry is regulated by the Financial Conduct Authority (FCA). In the FCA’s Consumer Credit sourcebook on Responsible Lending, they say that firms must undertake a ‘reasonable assessment of the creditworthiness of a customer before… entering into a regulated credit agreement.’ A creditworthiness assessment will be jointly based on information supplied by the consumer and, where necessary, a credit reference agency.

The three main objectives of the FCA are:

  • To secure an appropriate degree of protection for consumers
  • To protect and enhance the integrity of the UK financial system
  • To promote effective competition in the interests of consumers

Any company approving bad credit loans with no credit check at all would not be operating within the FCA guidelines above – which are in place to protect consumers. This could have serious implications. As explained on the FCA’s website, ‘If you deal with an unauthorised firm, you will not be covered by the Financial Ombudsman Service or Financial Services Compensation Scheme (FSCS) if things go wrong.’

When Are Bad Credit Loans with No Credit Checks Allowed?

Products advertised as no credit check loans may not always be against FCA guidelines. In some instances, a ‘soft search’ credit check could supply sufficient information to approve some types of credit. Companies who only need to perform soft searches may say they offer no credit check loans in the UK because soft searches are not recorded on your credit file.

No credit check loans from direct lenders who use only a soft search may be allowed where there is thought to be insignificant risk involved – but we find that it’s best to avoid grey areas when it comes to financial risks.

Brokers may also advertise that they offer no credit check loans. In the UK, brokers are not required to perform credit checks to the same extent as direct lenders are.

Brokers will usually perform a soft search credit check, and there will not be a credit check recorded on your credit file if you do not continue with the application.

This may be beneficial to people who wish to ‘shop around’ for the best deals before committing to applying for any form of credit. In this way, brokers are acting similarly to a loan comparison site. Their aim is to help you find short term loans with no credit check upfront. However, brokers will only be able to provide you with pre-approval for bad credit loans with no credit checks.

If you apply for payday loans with no credit checks via a broker, once you confirm your choice and the application is transferred to the lender, they will be required to perform a ‘hard search’ credit check. Any no credit check loan direct lender in the UK who does not do so would be going against FCA guidelines.

About Payday Loans with No Credit Checks

When it comes to payday loans and short term loans with no credit checks, the rules are clear. Payday loans from direct lenders with no credit check other than a ‘soft search’ would not be permissible under FCA guidelines.

It is very unlikely that any payday loans with no credit check could be approved, as the lender would not be able to gather sufficient information. Instead, they would need to seek more information from a credit reference agency – known as performing a ‘hard search’ credit check. With this type of credit check, a record of it will be made on your credit report, and it will usually remain there for around two years.

Payday loans are an expensive form of borrowing. Without the proper checks carried out following FCA guidelines, no credit check loans from direct lenders present a serious risk to your finances. Creditworthiness and affordability checks are designed to protect you against financial difficulties. Any company offering short term or payday loans with no credit check is unlikely to have your best interests in mind.

Opting to avoid bad credit loans with no credit check in favour of FCA authorised lenders also ensures that you are protected by the FCA’s price caps. These are:

  • The interest and fees charged each day must not be more than 0.8% of the original loan amount
  • Default fees must not exceed £15 in total – whether you miss one or more repayments
  • After a missed or late repayment, lenders cannot increase your interest rate
  • You’ll never have to pay more than the original loan amount in all interest, fees and charges

Choosing short term loans with no credit check involves the risk of being charged higher interest rates, default fees and charges. The risk may not be worth it, especially when there is a wealth of alternatives to payday loans from direct lenders with no credit checks available.

Alternatives to Short Term Loans with No Credit Check

There are several alternatives to payday loans with no credit checks in the UK. Some of these include using a comparison site to find lenders who would be likely to approve you after completing the proper checks, guarantor loans, using a credit card or borrowing from friends or family. It’s worth investigating each of these before considering no credit check loans from direct lenders.

If you need to cover an emergency expense, QuidMarket may be able to help. We do not offer no credit check loans in the UK – we’re proud not to be a no credit check loan direct lender in the UK. As a responsible lender, we carry out all necessary checks. However, we welcome applications from all levels of credit and will not turn down applicants based solely on their credit score. Instead, we carry out affordability assessments to determine whether you can sustainably afford the loan you have applied for. Find out more about our bad credit loans on our website today.

In accordance with FCA regulations, payday loans with no credit check from direct lenders are not permissible. For this type of loan, the lender would need to gather a sufficient amount of information to determine whether you would be able to afford the repayments. This should include performing a hard search on your credit record to ensure you are capable of managing your finances. Even loans that advertise as affordable loans will need to have some sort of check on your credit rating, despite not being completely based on your score. If you need an alternative, you could try guarantor loans, credit cards, or personal borrowing.

No credit check loans are advertised as being offered without the lender carrying out a comprehensive review of your credit history. People with poor credit may be interested in loans without a credit check because they could be worried about being turned away. However, loan providers who offer no credit check loans in the UK go against the FCA regulations. Instead of looking for no credit check loans, you should look for loans with lending decisions based on affordability. These loans take your monthly income, essential outgoings, and financial commitments into consideration, rather than your whole credit history. These are usually offered to those with bad credit, so if you have previously been turned away in the past, loans for affordability could be a better option.

Under FCA guidelines, all loans providers should conduct some form of check on a borrower’s credit score, even if they offer loans for affordability. This means that lenders should not be claiming to provide no credit check loans in the UK. Lenders should perform sufficient checks to ensure that you can comfortably make the repayments each month. If they do not check, there could be a chance that you cannot afford the repayments, leaving you in further financial difficulties. If you are looking for a way to secure the money you need, you could try a credit card or guarantor loan instead.

Warning: Late repayment can cause you serious money problems. For help, visit: www.moneyhelper.org.uk