How hard is it to qualify for a loan?
Being approved for a loan depends on several factors, including your financial situation, your credit score, and how much money you’re applying to borrow.
When you apply for a loan, the lender will carry out a creditworthiness assessment. This helps them understand your financial circumstances. A responsible lender will need to make sure you’re able to repay the money you’re applying to borrow.
Who is not eligible for a loan?
There’s no one set answer to this question, as every lender has their own eligibility criteria.
Typically, you could be eligible for a loan if you’re a UK resident over the age of 18.
Some lenders may also specify:
- You’re over the age of 21.
- You have a minimum monthly income.
- You have 1, 3-, or 5-years’ UK address history; or
- You have a good credit score.
You may not be able to apply for a loan with certain lenders if you have a history of bad credit, bankruptcy, an individual voluntary arrangement (IVA), or a County Court Judgement (CCJ).
Is it difficult to get a loan if you have bad credit?
If you’ve asked, ‘how difficult is it to get a loan with bad credit?’ there’s a chance that you’re worried that a history of financial mismanagement could hold you back when applying for credit.
It might be difficult to find a lender willing to consider your application if you have bad credit; however, there could still be options available.
Some lenders, including several on the CashLady panel, specialise in loans for people with bad credit. Please note that a bad credit loan could come with a higher rate of interest, which will reflect in your monthly repayment amount and the overall cost of borrowing.
With CashLady, you’re welcome to search for a loan even if you have bad credit, as long as you:
- Are over the age of 18;
- Are a UK resident;
- Have a UK bank account; and
- Have a regular source of income paid into your bank account.
What is the minimum credit score for a loan in the UK?
There isn’t an exact number you need to be considered for a loan in the UK.
Some lenders could be willing to consider borrowers with bad credit, while others may need you to have a certain credit score before applying.
How to improve your chances of being considered for a loan
- Improve your credit score
A good credit score doesn’t guarantee that you’ll be accepted for a loan; however, generally, the better your credit score, the better your chance of being considered. There are several things that you can do to work towards a healthier credit position, such as registering to vote, checking your credit report for errors, and paying all your bills on time. - Be realistic
Know your credit score and manage your expectations. If you have a history of bad credit, you might want to apply with a lender who specialises in bad credit loans. - Check the lender’s eligibility carefully before you apply
Do your research and ensure that you meet the lender’s eligibility criteria before you make an application.
A credit broker, like CashLady, could help you narrow down your choices and match you with a suitable lender. - Keep your credit applications to a minimum
When you apply for credit, the lender will complete a creditworthiness assessment, which will include a hard search or Open Banking. A hard search will be visible on your credit file for up to 12 months, and undergoing multiple hard searches in a short period of time will harm your credit score.
You could minimise the number of hard searches you undergo by using a credit broker rather than applying directly with a lender.
Is it difficult to use a credit broker?
Not at all! In fact, CashLady’s credit broking service has been designed to be simple to use.
Here’s how it works:
1. Fill in our online form. Let us know some basic information about yourself, as well as how much money you need to borrow, and how long you’d like to borrow it for.
2. Using the information you’ve provided, we’ll scan our panel of lenders for a suitable loan for you. This will take just 60 seconds and will not affect your credit score in any way.*
3. If we’ve been able to match you with a loan, you will be redirected to the lender’s website. Here, you can find out more about the loan and decide whether you’d like to make a full application.
4. Happy to go ahead? The lender will complete a creditworthiness assessment, which will include a hard search or Open Banking.
5. If you pass the lender’s checks, you’ll be formally offered the loan, and the lender will let you know when you can expect the money to be sent. Some of the lenders on the CashLady panel could send your money on the same day your application is approved.**
How much money could I borrow, and for how long?
With CashLady, you can search for a short-term, personal loan between £100 and £10,000. The repayment term available to you will depend on how much money you’re approved to borrow and will range from 3 to 60 months.
CashLady Representative 79.5% APR
I’m finding it difficult to repay my loan; what should I do?
If you’ve taken out a loan that you’re having difficulty repaying, you should contact your lender as soon as you can.
Be open and honest when explaining your situation; you will not be judged. Your lender will appreciate the fact that you’ve got in touch and will be keen to work with you to put a plan in place moving forward.
Are you worried about money? Concerned about your level of debt? Please know that you can get free, confidential advice from the following organisations: StepChange, MoneyHelper, Citizens Advice, and National Debtline.
*CashLady uses soft search technology, which will not affect your credit score; however, if you’re matched with a lender and choose to make a full application, the lender will complete a creditworthiness assessment, which will involve a hard search or an Open Banking check. A hard search will affect your credit score. Please note that a hard search will remain on your credit file for up to 12 months, and undergoing multiple hard searches in a short period of time will harm your credit score.
**Payout timescales vary between lenders. The time it takes for the money to become available in your account will depend on your bank’s policies and procedures.