Then there are individuals who have problems with alcohol or drugs that want to borrow money and have absolutely no intention of repayment. They are just searching for a way to support their addiction.
When you put a person in a situation where they know they can prove their income but they know they will fail any sort of credit search, they resort to the internet and searches on Google for no credit search 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 poor terms. Lenders have to do credit checks to verify a person 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 home address. If you could get a loan and give a completely fictitious date of birth and other individual details, it would make it very difficult for the loan to be enforced.
When you apply for car insurance or other financial related product, these parties can do a status check on an individual which is a search to their credit file. This is not however saved as an application for credit.
A financial institution may have a legal obligation to know exactly who you are before they send you money.
Some below prime lenders may do a status check opposed to 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 previous 3 years address history and your date of birth this is a likely sign that a credit search is being executed.
A finance company is not allowed to do a credit check on you without your consent. An example of where you can refuse a credit check is when you move into a new house and you call the electricity company to tell them you are responsible for the bill. If they ask you your date of birth and your previous home address, you tell them you do not agree to a credit check 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 declinded for a loan or other credit agreement if you have missed payments, defaults 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 home address that you lived over 3 years ago it may be possible to qualify for a prime loan.
An example of a credit agreement that is simple to qualify for is a sim only mobile phone contract. The network provider is only exposed to the cost of the calls you make should you default, and since the real cost of telephone calls is extremely small it is worth the risk for them.
Some companies use systems called Hunter, Fraud scan and Detect, which search your complete 6 years credit history and if this is the case you are likely to not qualify for the loan which in some case can be heartnbraking especially if you are in dire need for the money.
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