Do PiggyBank Offer No Credit Check Loans?
At PiggyBank, we are an FCA Authorised direct lender, which means that we must conduct credit checks before approving a loan, as we always aim to lend responsibly. We won’t lend money if we believe it will put someone in financial difficulty. The only way to really check this is to carry out credit checks.
We don’t just base our loan decisions on credit checks though - we also look at things like your employment history and your income and expenditure. We won’t focus on things on your credit file that happened years ago either, we’ll look at your more recent history.
Why Might You Need a No Credit Check Loan?
If you have an unexpected expense and don’t have the funds to pay it, you may look into payday loan options. If your car breaks down, for example, you’ll probably need to get it fixed quickly so you can get to work. One of your essential appliances like your fridge might stop working, and you’ll need emergency funds to pay for it.
Not a lot of people have enough savings to cover a big expense, so unless your car packs it in on your payday, you’ll probably need to borrow the money to get it fixed.
Asking friends and family to borrow cash can be an embarrassing topic to bring up, and they may not have the funds to lend to you anyway, even if they want to help. You might be able to use a credit card or take out a bank loan, but this can take a while. Some bank loans will take up to three days to reach your account. You may also end up borrowing more than you need, as banks don’t tend to offer small loans.
You may not be sure what your credit score is like - you can check for free with sites like Noddle. If you’ve got a good credit history, you may be able to apply for more conventional forms of credit, like bank loans or credit cards. As long as you are not borrowing far more than you need, and therefore paying lots more in interest, these can be good options.
Even if you have bad credit, you may be eligible for some credit cards. If you want to find out more, the Money Saving Expert website has advice about credit cards here. The problem with the credit cards offered to people with poor credit is that they’ll usually have much higher interest rates.
So why might you have bad credit? Everything on your credit file stays there for 6 years, so if you made a loan payment late, or forgot to pay your credit card bill, your credit file may have been negatively impacted. If you have no credit history, you might have a ‘thin credit file’, which can make borrowing more difficult too, as lenders can’t see how you handle credit. It would be more of a risk to lend to someone if you can’t see their credit history - a lot of banks won’t lend to you if you can’t prove you’re able to make repayments.
It can be tempting to look into loans without credit checks if you have bad credit, but with these types of loan the interest rates will almost certainly be higher than with other short term lenders. Lenders like PiggyBank may still be able to help even if you do have a poor credit history. We know that nobody’s credit file is perfect, and we won’t just look at this when making a loan decision.
Can You Apply for a Payday Loan With Bad Credit?
Lenders don’t all look for the same thing on your credit file, and if you can’t get a loan through a bank because they think you’ve got bad credit, you may still be eligible for short term credit from lenders like PiggyBank.
You’ll need to be in part time or full time employment, aged 18 or over, and a UK resident to take out a PiggyBank loan. You’ll also need to have a UK bank account, so that we can transfer funds to you if your application is successful.
If you’ve previously been unsuccessful in obtaining credit, you may still be able to take out a payday loan, and if you repay early or on time, you can improve your credit rating.
How Do You Apply?
Our application process is all online, so there is no fuss with filling in paperwork. You can choose the amount you need to borrow, and the length of time that seems best to pay it over. We’ll then ask for some personal details, your employment information and your income and expenditure. There are 5 short sections to complete, and then we’ll give you a decision as soon as we can. If approved, you’d expect to have the funds within your account within an hour.
If you have any questions or need any help, you can email us at email@example.com, or call freephone 0800 206 1560.
Other Things to Consider
When applying for any loan, it’s a good idea to check if you’re working with a broker or a direct lender. Brokers can help you find a lender, but will often charge you a fee for doing this. Direct lenders like PiggyBank are able to pay out funds to you directly, with no middleman.
You should also consider whether borrowing is the best option for you before taking out a loan. If you are able to save money and then purchase what you need, you won’t have to pay anything in interest. If you are in long term financial difficulty, short term borrowing is not the solution. You can contact companies like the Citizens Advice Bureau for free advice about your financial situation.
If you are borrowing to pay back other loans, further borrowing may not be the best choice, as you could end up owing more and more and entering into a debt spiral. If you think you may need help with your debts, you can contact Step Change for impartial help.