Most of the lenders we work with at My Financial Broker will carry out a credit check prior to approving and funding your loan. This information is checked using one of the three main credit reference agencies in the UK of Experian, Equifax and Callcredit. With information provided in real-time, the lender gets an idea of how well you have paid loans and other credit in the past and can see if you have made recent applications or have any large debts outstanding.
Applying with My Financial Broker will not impact your credit score. If you are concerned about having a credit check against your name, there are certain financial products which are no credit check loans, such as car loans, loans with a guarantor and others which require you to use collateral instead of looking at your credit status.
There are some quick ways to improve your credit score, such as closing down any credit cards and store cards that you do not use, joining the voting register in the UK (since this confirms your name, age and address) and also avoiding too many loan applications in a short space of time.
Affordability aims to match the amount you have requested to borrow with the amount you can afford to repay. To check your affordability, we will ask for your monthly income and expenses in the application form and this should help us assess how much you can borrow without falling into financial difficulty.
Some lenders may request proof of payslips or bank statements to confirm your affordability and during the underwriting process, they may adjust the loan amount that you have requested to suit your requirements.
If you are a repeat customer with a specific lender, they may be able to use some of the historical data when determining your future eligibility. For instance, if you repaid your previous loan on time and your financial situation has improved, this will make you a good candidate for future loans.
Depending on the lender, you may also be able to borrow money for subsequent loans, with some lenders having a cap on your first loan (e.g £500) but this can increase to £1,000 for repeat customers.
If your credit record shows that you have similar multiple loans open at the moment, the lender may treat this with caution. Having too many loans in a short space of time may be a warning sign for some lenders. If you have several loans, credit cards or outstanding debt, you can use a debt consolidation loan to put them all under one single loan, making it more practical and convenient to pay off.