Definition
No credit check loan
A no credit check loan is a loan advertised as not requiring a credit check. In practice, all responsible UK lenders must carry out some form of assessment. Products advertised this way are often high-cost and should be approached with significant caution.
Common misunderstandings
- Responsible lenders in the UK are required to assess affordability — a claim of 'no credit check' may indicate an unregulated or high-risk lender.
- These products typically carry very high interest rates and fees.