What are Easy Loans?
What’s meant by easy loans is that lenders don’t make you jump through hoops for approval. Instead, they streamline the process to require as little documentation as possible.
The fewer checks needed, the easier the loans are to get. Easy loans allow for fast approval and fund disbursement.
What’s more, lenders know why customers need these… because of a poor credit history. Otherwise, any lender would be a plausible solution. When your credit score exludes you from mainstream lenders, specialist lenders help.
Easy loans can be a good choice in financial emergencies. Checks are still done to ensure you can afford the repayments. The checks are for affordability, and creditworthiness, but without impacting your credit score. Soft search technology is used instead.
The Credit Checks Done for Easy Loan Applications
Easy loans are less invasive than traditional background checks for any credit. Soft search technology provides creditors with your basic financial history. CCJs, active bankruptcies, and default accounts may still be made known to lenders. And, they’ll still consider your application.
Upfront, the eligibility criteria will let you know if you could be approved.
The Eligibility Criteria for Easy Loans to be Straightforward
The eligibility criteria of a loan company is imperative to know before applying. Banks and building societies will state upfront that you need a fair to good credit score. Subprime lenders focus on helping people with a poor credit history. The eligibility information lets you know if you match their customer profile.
You’ll need to know the cause of a low credit score to know if you’ll be eligible. The truth is that lenders don’t use your credit score. They use the information in the credit history section of your report. Specifically, negative markers.
Negative markers include things like:
- Late and missed payments
- Defaults
- Too many recent loan applications in quick succession.
- Partially settling old debts instead of paying all the money owed (lenders know).
Not only the above, but a lack of credit can be the cause of loan refusals.
Loan companies assess the risk of default and charge higher interest rates to offset it.
Important: The lower your credit score, the higher the interest rates typically are.
That is, if you do meet the eligibility criteria.
How to Qualify for Easy Loans
Any lender you’re considering applying to, have a look at their eligibility criteria to make sure you can meet them. If you don’t, you’ll be refused.
Eligibility requirements
The basics for every UK lender are:
- Be over the age of 18
- Live in the UK
- Have a current account
To qualify for bad credit loans, look for this information before applying:
- CCJs (Decrees in Scotland)
- Check the age of entry considered. It’s easier to get a loan with a CCJ registered a few years ago than with a CCJ registered three months ago.
- Discharged bankruptcies
- Bankruptcies are discharged after 12 months. They can take up to 15 months to remove them from the Individual Insolvency Register. Specialist lenders may still consider your application.
- IVAs (Individual Voluntary Arrangement)
- In an IVA, you can’t borrow over £500 without permission from an Insolvency Practitioner (IP). Depending on the lender, you may be eligible for £100 loans to £500 loans without needing approval. If you need small loans, such as payday loans, be very careful of the high interest fees.
- Recent missed or late payments (accepted or not)
- Some lenders may have a time period such as no late or missed payments within the past 3 months.
Documentation needed
Responsible lending practices need lenders to check you can afford the repayment. By being soft on the credit check, they get limited information. Alternative checks may be done to provide a loan without impacting your credit score.
It will help your application to have the following supporting documents
- Valid proof of ID
- Proof of address such as a utility bill or tenancy agreement
- Recent payslips or a copy of a tax return if you’re self-employed
- A recent copy of your bank statement
- You may be asked to complete an income and expenditure form. This is done to check you can afford the monthly repayments.
Loan approval and disbursement times
How long it takes to get a decision, and the money to you if approved, varies between lenders. Same-day loans may be approved within an hour, with funds disbursed by late afternoon. Quick loans may give you a decision the same day, but take 24 to 48 hours for the money to hit your bank. Non urgent loans may take 2 to 5 business days to reach your bank account.
Frequently Asked Questions
Are easy loans short term loans or payday loans?
They can be both. Short-term loans are instalment loans repaid over 12 months. Payday loans are repaid within 1 to 3 months.
What is the easiest loan to get?
Guarantor loans are easier to get when you apply with someone who has a good credit rating.
How can I borrow money instantly?
Applying for fast and easy loans from a direct lender is fastest, but not instant. The fastest is a decision within the hour with same-day funding by bank transfer.
Are easy loans legit?
The FCA regulates all loan companies in the UK. They all have a registration number, which is also contained on the website and in all documents. You can verify a lender is legit by checking the FCA register here.
