Debt Consolidation Loans With No Credit Check

If you have struggled with your personal finances or keeping up with credit repayments in the past, you may have experienced a poor credit score. In fact, 1 in 4 of us will endure problems with money in our lifetime, especially if we take out multiple forms of credit. This could include a business loan to start up your own enterprise, a mortgage to buy a home, or a quick loan to cover emergency expenses. However, when the debts start to build up, you might decide to seek out debt consolidation loans to help manage them a little better.

While there are debt consolidation loans for bad credit available to those who need further support, you may be tempted to seek out no credit check consolidation loans instead. But is there truly such thing as debt consolidation with no credit check? If you opt for a direct lender, they may not be able to offer this service under FCA guidelines.

couple figuring out how to get out of debt quickly

However, at Debt Consolidation Loans, we provide a broker service, which allows us to use a soft credit check to find the best lender for you, and won’t leave a trace on your credit file. This means that we can provide a decision in principle, allowing our customers to apply with us in confidence. We totally understand that life can throw unexpected issues our way, so we take all applications into consideration.

  • Years of experience in the finance industry
  • Large panel of debt consolidation loans lenders
  • Personal approach to application reviews
  • Bad credit applications considered
  • Easy online application process
  • FCA authorised, responsible broker service

We work with a large panel of lenders that offer consolidation loans for those in a range of circumstances. We personally perform a soft check on each application to understand your requirements and affordability, then turn to our lenders to find the ideal solution. This means we can match you up with the best debt consolidation loans with no credit check carried out before you’re ready. Once we have found a lender that suits your needs, they will be in touch to finalise your application, and will then perform a full credit check before making their own decision.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

What Is A Consolidation Loan With No Credit Check?

A consolidation loan offers a way to merge all of your debts into a single sum. This figure will be loaned to you, allowing you to potentially pay off each amount much quicker and giving you peace of mind about managing your finances. If you have taken some damage to your credit score, either by missing repayments or applying for too many forms of credit in a short space of time, you may have found yourself looking for forms of consolidation that do not rely on your credit score.

While there are bad credit options available, such as secured debt consolidation loans, you may have been tempted to try a consolidation loan with no credit check from a direct lender. However, these must be approached with caution, as respectable lenders who are authorised by the FCA must conduct some form of check to ensure your affordability. If a lender is offering loans with no credit check, they may not have your best interests at heart, so take the time to consider your options.

With our alternative, we will run a soft credit check to match you up with a lender. This provides us with similar information to a full credit check, but no trace will be left on your report. A credit check will only show on your credit file once you have been accepted for the loan from the lender, allowing future creditors to track your repayments and providing an outlet to start improving your credit score. This is the closest option to a no credit check consolidation loan that you can find without putting yourself at risk.

The UK Rules On No Credit Check Consolidation Loans

The financial industry is regulated by the FCA, and in their sourcebook on Responsible Lending, they say that firms must undertake a ‘reasonable assessment of the creditworthiness of a customer before… entering into a regulated credit agreement.’ An assessment will be based on both information supplied by the customer and, where necessary, a credit reference agency.

The three main objectives and guidelines of the FCA are:

  • To protect and enhance the integrity of the UK financial system
  • To secure a degree of protection for customers
  • To promote effective competition in the interests of customers

This means that any direct lender who approves debt consolidation loans with no credit check would not be operating within the guidelines. Before applying for any no credit check consolidation loans, you should check that the company is authorised. You can so this by searching the FCA’s Financial Services Register. However, as we are FCA authorised and perform a soft credit check, you can be sure that our services are safe to use and designed to find the best solution for you.

Why debt consolidation?

  • Improve your monthly budget
    A debt consolidation loan will enable you to group all your existing borrowing and the monthly repayments are easier to manage.
  • Reduced overall repayments
    A debt consolidation loan could even save you money each month if the interest rate is less than the combined total interest of the previous loans.
  • Improved credit rating
    The simplicity of repaying a debt consolidation loan means that you are more likely to repay the debt on time every month. This will prove you to be a responsible borrower, which will have a positive effect on your credit score.

 

Alternatives To Debt Consolidation With No Credit Check

There are several alternatives to a consolidation loan with no credit check that you should consider before applying with a direct lender. One of the simplest is to use a comparison site or brokerage service with soft checks like Debt Consolidation Loans to find lenders who would find a suitable lender to recommend. There are a variety  specific consolidation loans available, such as a debt consolidation mortgage or credit card consolidation loans, and using brokers or comparison tools can help to find the best for your situation. Other alternatives include:

  • Bad credit consolidation loans – as these loans are designed for those with poor credit, the background checks are mainly based on affordability. This means that the lender may review your monthly income, essential outgoings, and other financial commitments. While they may still assess your most recent credit history, the decision will be mainly based on your ability to sustainably make repayments each month. We recommend you still begin your search for debt consolidation loans with no credit checks, as unnecessary ‘hard search’ checks can harm your rating further.
  • A balance transfer credit card – if you have credit card debts, you can move your balances over to a single card, ideally with a promotional 0% APR offer. However, this option is not for everyone, as it may be difficult for those with poor credit to gain approval, but in the right circumstances, a balance transfer can provide financial breathing room.
  • A debt management plan – if you choose to enter a credit counselling scheme, you may be offered a debt management plan. With this arrangement, the provider will negotiate with your creditors on your behalf. This may result in lower interest rates or waived late fees in exchange for a stable repayment plan. This could last from 3 to 5 years, during which you have to make a single payment to the counsellor each month so that they can distribute the payments.
  • Declaring bankruptcy – discharging your debts in bankruptcy may be an option if you are overwhelmed by debt, and it will take five years or longer to repay through consolidation. This will wipe out most kinds of unsecured debts, such as medical bills and credit cards. However, this option may have an initial impact on your credit score, so you should research how to improve your credit score to help it recover afterwards.

Choose Us For Your Consolidation

At Debt Consolidation Loans, we truly hold our customers’ best interests at heart, which is why we offer a soft alternative to debt consolidation loans with no credit check. With our personal approach to the checking process, we can manually review applications for affordability, use our soft checking to view your details, and take the time to understand our customers’ needs. We are proud to consider all applications and will do everything we can to ensure you can make repayments if you need help with managing your debts. However, if we felt that you would struggle to comfortably make repayments, we would need to decline your application for your own wellbeing.

We offer flexibility in our repayment plans, so you will be able to make repayments on a pre-agreed date each month to suit you. This can help you to budget, as well as give you peace of mind when it comes to planning your finances. We are also honest and transparent with every customer, so we can guarantee there are no fees for using our service and our soft search will not damage your credit rating.

If you would like any more information, check our FAQs or feel free to contact us. If you are ready to start searching for consolidation loans, please apply now.