About our loan affordability calculator
Our loan affordability calculator works out how much you can afford to borrow, displaying your disposable income after regular payments have been made. We have designed our calculator for customers with previous credit issues.
The questions in our calculator are the same as those used by our trusted panel of short-term lenders. This means you can apply for a short-term loan that lenders are likely to agree is affordable and fair. No nasty surprises.
Our calculator takes into account your income and expenditures. Your earnings are the money you have coming in, such as your wages. Your expenditures include regular payments such as:
- Council tax
- Other regular bills
- Our calculator then works out how much you can afford to repay each month.
Calculating your disposable income
Your disposable income is the money left each month after paying your regular bills. This is the most important factor in borrowing money.
Disposable income is also a useful tool when budgeting and managing your finances. Borrowing more than your disposable income can get you into serious repayment trouble. By using our calculator, you can avoid this situation.
When using our loan affordability calculator, please be as accurate as possible. List your total income, including your wages and any benefits you are receiving.
Check your payslips or bank statements to get accurate figures. You should also include any extra income such as rent from lodgers or other financial help. When calculating your income, you should ignore one-off or irregular income.
Make sure your disposable income is enough to meet your loan repayments.
How to fill in the details
Use accurate figures for your expenditures. Check your bank statements for the average amounts.
If you have any costs that you pay for on an annual basis, you should divide the total by 12. Likewise, you should divide any quarterly payments by 4.
When calculating your outgoings, you should include:
- Council tax
- Utility bills such as gas, electric, water, council tax and phone bills
- Transport costs such as car tax, car insurance, bus/train tickets
- Credit repayments such as loan payments, credit card bills etc.
- Other expenses like clothes, beauty, entertainment, childcare.
These can often be tricky to define. Check back through several months’ bank statements as this can be an easy way to see what you actually spend.
A loan affordability calculator does not replace a credit check run by a credit company. This is a vital step in your application process.
Important! No credit check offers are not real, they work to show your probability of acquiring a real loan in the UK. Be cautious when looking for such offers.
If your outgoings total more than your income, then borrowing money may not be a wise decision. This is especially true of short-term loans, which tend to have higher interest rates.
Borrowing money when in this situation can land you in severe difficulties.
If you are struggling financially, you could contact one of the below UK-based organisations who offer free and impartial financial advice: