Even with a very low score, defaults or a CCJ, some lenders on our panel may still consider you, focusing on whether repayments are affordable now rather than your history alone.
Checking uses a soft search, and we search our panel for a potential match without any further impact on your credit score.
What lenders look at
For borrowers with a difficult credit history, lenders may consider both recent conduct and older events, alongside current affordability. The amount and repayment term both affect affordability and what a lender may be prepared to offer.
- Your income against your regular outgoings
- How you have managed credit recently
- The amount and term you are applying for
How to improve your chances
Registering on the electoral roll, correcting any errors on your credit file, and applying only for what you need can all help. Using a soft search first avoids stacking up hard searches.
What to expect on rate and amount
With a very low score, the rates you are offered are typically higher, and the amount and repayment term both affect affordability and what a lender may be prepared to offer. Where a loan is classed as high cost short term credit, FCA rules mean the interest and fees cannot exceed the amount borrowed.
Loans after recent defaults, CCJs or insolvency
If your credit is not just poor but severe, with recent defaults, one or more CCJs, or a past bankruptcy or IVA, your choices are narrower, though not always closed. A smaller group of lenders look specifically at very low scores and weigh what you can afford now more heavily than events from years ago.
Expect fewer options, smaller amounts and higher rates. Making every repayment on time can help you rebuild your credit profile over time. Be wary of anyone promising guaranteed approval whatever your circumstances, because no responsible lender can offer that.
Rebuilding your credit over time
Your credit profile can recover with steady, on time payments. A few free habits help it along.
- Make every repayment on time, on any credit you hold
- Register on the electoral roll at your current address
- Keep credit card balances well below their limits
How to apply
Borrowing responsibly
It is worth making sure the monthly repayment fits comfortably around your other commitments before you apply. Focus on the total amount repayable across the full term, not just the headline monthly figure, and only borrow what you really need.
Every lender on our panel is authorised by the Financial Conduct Authority, and high cost short term credit is subject to an FCA total cost cap, meaning you cannot repay more in interest and fees than the amount borrowed. If money is tight, free and impartial help is available from MoneyHelper.
Representative Example: Borrow £1,000 over 18 months. 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% (fixed). Subject to application approval by the lender. Not all lenders offer loans up to £5,000. Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.