What is meant by loans without UC? What are the advantages and disadvantages of having a loan without UC? Are there situations when it is better to borrow without UC or not? Which is the best option for me?
Regardless of what questions you have about loans without UC, you will get help here to fully understand the concept. There are usually cheaper alternatives than borrowing money without UC, but in some cases it is the only solution. By reading this text you will get specific tips on how to improve your personal finances and in the future not have to take new credits without UC.
What is meant by loans without UC?
It is regulated by the law that all lenders must do a satisfactory credit check on anyone who wants to borrow money. In other words, you do not avoid a credit check on loans without UC.
The Information Center (UC AB) is Sweden’s largest credit information company, and for loans without UC, the lender therefore does not use UC in its credit assessment, but rather another information company.
In addition to the major banks, UC is also used by landlords, brokers and others to control their clients’ finances.
A credit check not only protects the person who wants to lend money, but primarily the consumer from not borrowing more than he can afford.
How to borrow money without UC?
If, as a consumer, you want to borrow money without UC, then you have to turn to a lender who does not use UC for his credit check, such as Credway or Message loan. The various credit information companies do not share the information among themselves. For example, we at Astro Finance partner with both UC and Bisnode to help more customers find the best loan.
The picture below illustrates what the loan process can look like when you want to borrow money without UC and with UC.
Therefore, loans without UC with many requests are possible
A credit report at UC remains in their register for one year from the time the information was ordered. Since other credit reporting agencies do not see requests made to UC, loans without UC with many requests are entirely possible.
The fact that there is no common credit assessment system may seem a bit backwards, as one major reason why the system exists at all is to protect you as a consumer. If the lender does not get the full picture of your finances, you risk borrowing more than you can afford. Therefore, it is important that you are honest about your current loan situation when applying for a new loan.
More expensive to borrow without UC
Since UC is the largest credit reporting company used by all major banks, it can be understood that customers who want to borrow without UC pose a higher risk to the lender. However, all credit reporting companies have similar methods and collect information from the same sources for the credit reporting.
Borrowing without UC thus means more expensive loans in the form of higher interest rates. The best thing you can do is to compare loans and their interest rates and terms. Apply for a loan with us before you sign up for a new loan to make sure you have the best terms for you!
Below we list examples of interest rates we found on a comparison site that only compares loans without UC.
Loans without UC 50,000
Loans without UC of $ 50,000, there are a few players who offer and are for most people a maximum amount. Over this loan amount there are disappearing few lenders, one of whom also specializes in mortgage loans.
- Effective interest rates are over 43% for all lenders offering loans without UC – $ 50,000.
Borrow 30,000 without UC
In a comparison of lenders offering loans without UC of $ 30,000, we found three times as many against those offering $ 50,000. The effective interest rate has a wider range in this loan amount.
- Effective interest rate 21-50%.
Loans without UC 25,000
For loans without UC of $ 25,000, there are approximately as many who offer $ 30,000 in loans. Effective interest rates are also the same as the example above:
- Effective interest rate 21-50%.
If you instead compare loans through Astro Finance you can borrow up to $ 600,000 with an effective interest rate from 3.01% -22.59%!
This is how you can gain control of your personal finances
You have been taught that loans without UC are an expensive alternative and why it is that way. Now we will go through methods you can use to avoid loans without UC in the future and thus gain control of your personal finances, once and for all!
Step 1: Make a budget
Think the luxury trap budget board. Find out what costs you have each month and how much income you have. Here you can read about how to make a budget calculation in the best way. When you keep track of your spending for each month, you know how much money you need to get in as well. If your income is lower than your expenses, you either need to increase your income or lower your expenses. Of course, the best thing is to do both.
Step 2: Reduce your expenses
The best and easiest way to reduce your monthly expenses if you have multiple loans or credits is to collect your loans, which is also good for your creditworthiness for the future. Click on the link to see how much you can lower your monthly expenses through such a quick and easy action.
Step 3: Increase your income
If you work part-time and feel that the money is not enough month after month, it may be a good time to consider the possibility of working more hours. In addition, if you are repeatedly forced to apply for a loan without a UC, it is really time to increase your income. Take the bull by the horns, set up a plan on how you can work more or even find your new dream job!
If you think that a loan without UC is your only option, here are some additional tips
You may have payment remarks, low credit score or low income and have therefore been denied a loan from a bank or lender. But there is still hope for you!
If you have a monthly income of at least $ 10,000 and have been debt free at Lite Lender Bank since 6 months back, there are good opportunities for you to get a loan with the help of Astro Finance. Astro Finance mediates private loans and cooperates with over 35 banks and lenders. Some of these accept up to 10 payment notes. If you also have a co-applicant on your loan, your chances increase significantly!
Borrow with payment note without UC – not the only solution
You can borrow money without UC and with payment notes, but payment notes do not necessarily exclude loans with UC. Contact us at Astro Finance and we will help you.
A payment note can be seen at all credit reporting companies since information is obtained from Lite Lender Bank. It is not Lite Lender Bank itself who decides that you should receive a payment note, but it is decided by the credit reporting companies. A debt with Lite Lender Bank is usually left in the information companies’ register for 3 years, from the date the debt arose.
Finally – Are there any benefits to taking a credit without UC?
The only advantage of a credit without UC is that it keeps your credit rating up. UC’s credit register goes back a year in time and is updated once a month. When a loan or credit has been repaid, it is still included in UC’s history for one year.
A credit that ends 2019-08-31 is thus visible in the credit history until 2020-08-31.
But taking a credit without UC, only to maintain its creditworthiness, is a high price to pay and can put you in a worse financial position than before.
Good situations to take a quick loan without UC
If you are unable to obtain a loan through one of the major banks, there is a good reason to apply for a fast loan without UC if it is for collecting loans without UC. Although there is a higher interest rate on fast loans without UC, a combined loan will give you a better opportunity to repay the entire loan.
A micro loan without UC may also be okay if it is a one-off opportunity to resolve an emergency situation. But the best thing for you financially is to look at other options. Make sure you start saving for similar future situations.
Bad situations to take an SMS loan without UC
You should never take an SMS loan without UC for the following purposes:
- Fund gambling (casino, slots, poker etc).
- Alcohol and partying.
- To pay on other loans.
Also, you should never take an SMS loan without UC if you know that you cannot afford to repay the loan. Hiding information on other loans to get a new one just affects you in the end.