Monthly instalment loans – no credit check – what’s possible in the UK?

If you are searching for a monthly instalment loan, you are not alone. Many people in the UK look for ways to borrow money without affecting their credit score or facing rejection. This guide explains how monthly instalment loans work, whether no credit check loans exist, and how to check your eligibility safely without harming your credit file.

What is a monthly instalment loan?

A monthly instalment loan is a type of personal loan that is usually repaid in fixed monthly payments over a set period. The total amount you borrow, the interest rate, and the term of the loan all determine what your monthly payment will be. Repayment terms usually range from a year to ten years but some loans can go up to 25 years and beyond, depending on the applicant and the agreement. Instalment loans are typically unsecured loans, meaning they do not require a guarantor or collateral. Borrowers often take out amounts from £1,000 to £10,000, with £5,000 being one of the most common. If you’re comparing offers to find, for example, the cheapest £5,000 loan, make sure to look at interest rates, total repayment costs and any fees charged by the lender.

Why people search for “no credit check” loans

People often search for “no credit check” loans because they are worried about being rejected. This can be due to missed payments, past defaults, or simply not having much of a credit history. Some people may be new to the UK and have no credit profile at all. Others may have been declined before and want to avoid another rejection, which could lower their credit score. Unfortunately, some websites advertise no credit check loans without explaining that these are not available from FCA-authorised lenders in the UK.

Can you get a no credit check loan in the UK?

In the UK, all FCA-regulated lenders must run a credit check before approving a personal loan. This means there are no true no credit check loans available from authorised providers. Some lenders advertise loans without a credit check, but these are usually either unregulated or based overseas, and they may carry very high interest rates or hidden fees. What you can do, however, is complete a soft search. This lets you see your eligibility and which loans you could be eligible for without leaving a mark on your credit file.

Who offers soft search loans with monthly repayments?

Many UK lenders and brokers now offer soft search tools that let you check your eligibility for unsecured loans without affecting your credit score. These tools show which loan offers you’re likely to be approved for based on your credit profile, income and borrowing history.

Some lenders may show you as pre-approved, which means you’re highly likely to be accepted if you go ahead and apply. Whether you’re looking to borrow £1,000, £5,000 or more, using a soft search can help you find the cheapest £5,000 loan or any other loan amount available to you based on your circumstances.

Alternatives if you are struggling to get approved

• Credit builder credit cards
• Community lenders or credit unions
• Guarantor loans
• Secured loans if you own a car or property

Always make sure the lender is FCA authorised and that you understand the full terms before proceeding.

How to check your eligibility without damaging your credit

Most reputable lenders and comparison services offer soft search tools. These let you check which loans you may be eligible for with one or more lenders in a matter of minutes. You will not see a drop in your credit score, and you can compare loans based on your financial profile. This is a helpful way to reduce the risk of rejection and view competitive loan options tailored to your circumstances.

Keep in mind that these comparisons do not guarantee a loan approval and you must go through the full application process to receive a formal loan offer.

Frequently asked questions about monthly instalment loans and credit checks

What to remember before applying for a loan

There is no such thing as a guaranteed or no credit check loan in the UK if you are borrowing from a regulated lender. The safest way to borrow is to check your eligibility using a soft search, compare loan offers based on total cost, and avoid any lender that promises approval without questions. If you want to spread the cost with fixed monthly payments and protect your credit score, start by taking a free personal loan eligibility checkto compare loans you could be eligible for.