Getting a loan quote from Fund Ourselves is not likely to affect your credit score as we only carry out a soft search when you ask for a loan quote, however if you go ahead and apply for a loan with Fund Ourselves, we will share this information with the credit reference agency which is likely to impact your credit score.
We understand that some customers may apply for a loan with bad credit and therefore be conscious that getting a loan will impact their credit score. However, we can assure you that this is not the case unless you go ahead with the loan.
How does a credit score work?
A credit score is a numerical value that gives an overview of your credit history and how well you have repaid other types of loans and financial commitments. Everyone in the UK gets a credit score when they turn 18 and the score can go up or down depending on how well you keep up with your financial obligations such as repaying loans, credit cards, mobile phone bills, mortgages and other commitments.
Your credit score is managed by the three main credit reference agencies in the UK - Experian, Equifax and CallCredit. Each credit agency has their own scoring, with the higher number suggesting a better credit score for the individual or business.
- Experian (0-999)
- Equifax (0-700)
- CallCredit (1-5)
Every time a customer applies for a loan with Fund Ourselves, we will contact one of the credit reference agencies above and we will be able to see your current credit score and this will be used to determine your eligibility for a short term loan based on our credit policy.
What happens to my credit record when I get a loan quote?
When you apply for a loan online with Fund Ourselves or any other lender, the company will carry out a soft credit search and leave what is known as a ‘search footprint.’
This is a temporary mark on your credit file which confirms that the lender has checked your credit score. This will not have a negative impact on your credit score and will disappear after 12 months. However, if you go ahead with application, it will be shared with credit reference agency which is likely to impact your credit score.
What could impact my credit score?Applying for too many loans
– Whilst having a search footprint on your credit record shouldn't impact your score, it can have a negative impact if you apply for too many loans in a short space of time.
This may suggest that you are reliant on lenders or that you may have been a victim of fraud. It is normal to have around 12 search footprints per year but having dozens or hundreds within the space of a week or month can be damaging to your credit file.Failing to repay on time
– Every time you miss a repayment for a loan or other credit obligation, this will leave a negative mark on your credit file and cause your credit score to decrease.
The idea is that your credit score updates in real-time, so if you have just missed a payment, the information will be updated immediately and any future loan providers will be able to see this information and they may be cautious to lend to you.
Equally, if you pay your loan commitments on time, this can improve your credit score or help you maintain a strong score.
In addition to missed repayments, having arrangements to pay, CCJs, IVAs and bankruptcy will also negatively impact your credit score.Being linked to someone who fails to pay on time
- If you have a joint account or share a mortgage with someone i.e. a spouse or sibling – any missed repayments or debt can negatively impact you too.
Lenders will believe that you are associated to the individual and will most likely offer them financial help – and this can impact your eligibility for finance.
Can I apply for a short-term loan with bad credit?
Yes, Fund Ourselves is able to accommodate those looking for short term loans with bad credit
. We are willing to take a view on people with adverse and less than perfect credit scores. We take numerous factors into account and provided that you are earning a regular income, do not have several loans outstanding and can afford to fully repay the loan on time, we are very happy to consider your application.
Our entire loan application process is completed online and you can get an instant decision on the screen once you have applied.
There are no upfront fees for applying and subject to further checks, we can often fund loans typically within 1 hour or the same day of applying.