Soft Credit Check Loans

Representative APR Example

The rate you are offered will depend on your individual circumstances.

All loans are subject to status. The interest rate offered will vary depending on our assessment of your financial circumstances and your chosen loan amount.

Representative APR Example: On an assumed loan amount of £1,000.00 over 18 months. Rate of interest 71.3% per annum (fixed). Representative 99.89% APR. Total amount payable £1,655.10 of which £655.10 is interest. 18 monthly repayments of £91.95.

What Are Soft Credit Check Loans?

Being rejected for a loan due to your credit score can be extremely frustrating. And what adds more to the frustration is, whether your loan application is approved or rejected, it will certainly impact your credit score. Not only this, Your chances of borrowing money in the future are also impacted.

A credit check is mandatory as per the FCA. Therefore, lenders perform a credit check to find out details about your borrowing history. A hard credit check leaves a search footprint on your credit record. That means, if you have ever been rejected by any lender for a loan, the next lender you go to will be able to see your previous history. This may create a negative impression as well. Because this may reduce your chances of getting credit as many lenders may use this data as one of the factors, which may help them to determine the potential risk involved in lending money to you.

A soft credit check is done to initially run a check to know your creditworthiness and it doesn’t leave any footprint on your credit history. These loans are also known as soft search loans in the UK. These are unsecured loans given for a period of less than a year.

Soft Credit Check Vs Hard Credit Check | Know the difference

Soft credit checks are never visible to any other lender however, hard credit checks are visible on your credit report. A soft credit check will never impact your credit score and with every hard credit check on your profile, your credit score gets lower.

Due to the visibility of hard credit checks on your credit report, many lenders may consider that you are in financial trouble if there are multiple checks on your report. This gives the lenders an impression that you are risky for them and you depend on borrowing money to deal with your financial urgencies.

Please note a hard credit check is mandatory by the FCA and it will be conducted by a lender only before the final stage of the lending process.

What Are the Advantages of Online Soft Credit Check Loans?

A credit check affects your credit history. Each time a credit check is performed on your profile, it gets recorded on your report and can be seen by every other lender you apply for a loan with. A soft credit check is also recorded on your history but it is not visible to other lenders. A hard credit check is mandatory in the later stages.

A soft credit check is run by a lender to verify the details provided by you while offering you a quote. Several advantages of a soft search loan are listed below, which may help you to form an idea of its mechanism.

Untraceable
The footprint is untraceable by any other lender. This increases the chance of your loan application to be accepted.

Credit History is Not Impacted
Your credit score is not impacted by the soft credit check. That means using this credit check a lender may assess how likely your application will be accepted without performing a hard credit check.

Useful
Soft credit checks are useful as it allows a borrower to see how eligible they are for a wide range of products without actually applying for it. There is no limit on the number of soft searches you can perform on your credit report.

Please note that with advantages come disadvantages as well. If you want no negative impact on your credit score or report, make sure you follow the repayment schedule and not miss any payment. Late repayment can cause you serious money problems, For more information, go to MONEYADVICESERVICE.ORG.UK.

How Can One Avoid Hard Credit Checks?

Avoiding hard credit checks is easy as many high street lenders are offering soft search loan. To reduce the number of hard credit checks on your report, find lenders who prefer to conduct a soft search for the initial loan approval process. This way you can minimize the damage on your credit score. Suppose say, you receive an offer from a lender with a quote that you didn’t feel like going ahead with, you can deny the lender right away and without any impact on your credit score. However, if you opt for lenders who do not perform a soft search, and you receive a quote you do not agree with, you will end up hurting your score.

At 786 Loans, we offer soft credit check loans and no guarantor loans to help borrowers build and maintain their credit score. Because we believe that borrowers should be protected from being exploited.

How to Build Credit Score with the help of Soft Search Loans in the UK?

Building your credit score is a game of patience, efforts and discipline. People with no credit history also have to go through the same drill to create and maintain their score. Why is it necessary to build credit? Well, your credit score affects your borrowing eligibility. If you have a bad or poor credit rating, there are a list of things you can do to upgrade the score:

Pay Your Bills
Paying your bills such as phone, gas, electricity, internet on time is a great way to prove that you manage your personal finances efficiently.

Repay Your Loan
If you have existing debt, make sure you repay it on time and in full. Timely repayments help borrowers to improve their credit rating.

Register on the Electoral Roll
Being registered on the electoral roll help the lenders to confirm your identity. It helps them to avoid identity theft and fraud.

Take Out a Small Loan
Consider taking out an unsecured personal loan. They are easier to get accepted and also prove that you are financially responsible if you repay on time.

Be Financially Responsible – Borrow wisely With 786 Loans

786 Loans is an FCA authorised loan broker operating in Nottingham, Bristol, London, and all other major cities across the UK. It offers a wide range of unsecured credit products to help borrowers manage their personal finances.

Financial urgencies may compel us to borrow funds, however, timely repayment will yield in greater results, such as improvement of your credit score. Borrow responsibly to avoid getting into any debt traps. Be financially responsible and stay at the top of your finances, even during a financial crunch.

We deal with FCA regulated lenders only and abide by all the rules of the financial watchdog to promote a fairer lending market in the United Kingdom.