There are decent people that have every intention of repaying a loan but their lives are too disorganized or their job situation is too volatile for them to keep up with payments.
Then there are individuals who have problems with drink or drugs that want to borrow cash and have absolutely no intention of paying it back. They are just searching for a way to support their addiction.
When you put a individual in a situation where they know they can substantiate their personal income but they know they will fail any sort of credit search, they resort to the internet and searches on Yahoo for no credit check loans.
The reality is while many lenders are willing to lend to people with adverse credit history, they will do it only under certain conditions, and usually with very unfavourable terms. Lenders have to do credit searches to verify a individual is who they say they are. This is especially true online as no trusted 3rd party will ever see originals of their proofs of ID and proofs of residential address. If you could get a credit agreement and give a completely fictitious date of birth and other individual details, it would make it very difficult for the credit agreement to be enforced.
When you apply for a spread bet account or other financial related product, these parties can do a status check on an person which is a search to their credit file. This is not however recorded as an application for credit.
A financial institution may have a legal obligation to know exactly who you are before they send you funds.
Some sub prime lenders may do a status check instead of a credit check, but the vast majority of lenders and suppliers of consumer finance do a credit check. As soon as you are asked for your last 3 years address history and your date of birth this is a likely sign that a credit search is being performed.
A company is not allowed to do a credit search on you without your permission. An example of where you can refuse a credit search is when you move into a new home and you call the power company to tell them you are responsible for the charges. If they ask you your date of birth and your previous address, you tell them you do not agree to a credit search as it will knock down your score with other potential lenders. Then they can’t do a check on you.
You are likely to be rejected for a loan or other credit agreement if you have missed payments, default notices or County Court Judgements. Defaults and County Court Judgements stay in your credit report for six years. If your defaults or judgements are at a previous address that you lived over 3 years ago it may be possible to be accepted for a prime loan.
An example of a credit agreement that is easy to qualify for is a sim only contract mobile phone. The mobile network is only exposed to the cost of the phone calls you make should you not pay, and since the absolute cost of telephone calls is extremely small it is worth the risk for them. No credit loan
