Hi, I'm woodiepicker12! I have a bad credit score, where can I get a loan? — Scope | Disability forum
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Hi, I'm woodiepicker12! I have a bad credit score, where can I get a loan?

woodiepicker12
woodiepicker12 Member Posts: 2 Listener
edited October 13 in Benefits and financial support
Hi all, I am after some help advice or support. Is there a company I can ring to get a loan from.? Since being permanently disabled I have enhanced rate of pip of both components But due to me not being able to work and all the bills got on top leaving me with a bad credit score. Is there a way of changing it so I am able to get a loan Thanks in advance
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Comments

  • chiarieds
    chiarieds Community Co-Production Group Posts: 11,004 Disability Gamechanger
    Hi @woodiepicker12 - & welcome to the community. I wonder if the following charity may be able to advise. Please see: https://www.stepchange.org/   unfortunately they're doing some maintenance at the moment, but there's still some advice available.
    I hope some of this helps. :)
  • Cher_Inactive
    Cher_Inactive Posts: 4,414

    Scope community team

    Hello @woodiepicker12 and a warm welcome to our online community.  I'm glad you found us.

    Before looking at getting a loan, I'd be inclined to contact a debt management organisation too (as @chiarieds recommended).  They'll be able to help you manage your existing credit and could work with your creditors to come to an affordable repayment plan.  In addition to Step Change, you could try contacting:
    If you're struggling with energy bills, then Scope's Disability Energy Support could be another useful port of call.  The team are super friendly and can offer free advice in a 45 minute appointment with a specialist advisor.  Please visit the website linked for more details.  

    Lastly, this Money Advice Service article on 'Getting a loan if you're ill or disabled' has robust advice on how to avoid risky loans and expensive credit.  

    Just to add - I've moved your thread to our Finances and extra costs category and tweaked the title slightly to help others better anticipate what it's about.  

    Wishing you well and please let us know how you get on :) 
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  • woodiepicker12
    woodiepicker12 Member Posts: 2 Listener
    Hi both. 
    Thank you very much for the warm welcomes.

    also thank you for the support you’ve offered along with the advice.
    I will do some homework and contact step change on Monday.

    just a quick question would it be worth ringing my bank and explaining I have become permanently disabled and see if there is anything they can do?

    thanks again means a lot 
  • Cher_Inactive
    Cher_Inactive Posts: 4,414

    Scope community team

    Hi @woodiepicker12

    It might be worth contacting your bank to explain your circumstances - that you are disabled and are struggling with repayments - to see if they can provide support.  Although it's not something I have particular expertise in, I can see some banks will ask customers to fill in an income and expenditure form and then get back to them with a plan on how to help.  

    It's great that you're being proactive about this and good luck :)
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  • woodbine
    woodbine Community Co-Production Group Posts: 5,603 Disability Gamechanger
    hi @woodiepicker12 it is worth pointing out that nobody has a credit "score" so take no notice of that, we do all of course have a credit history which is a different thing. It is also worth keeping in mind that it's never the best idea to borrow money to pay off debt if thats what you were considering?

    As for getting a loan whilst your only income comes from benefits thats never easy, as above a conversation with one of the debt charities would be a good idea.

    For the future have you considered joining a local credit union ? The idea being you save a small amount on a regular basis and after a few months if you need a small loan e.g for a new washing machine they offer low cost loans to member?

    It might also be a good idea to sign up (for free) to MSE who have some excellent financial advice forums.
    I am a person with epilepsy not an epileptic, my illness doesn't define me.
  • lisathomas50
    lisathomas50 Member Posts: 4,695 Disability Gamechanger
    @woodbine you say that the credit score doesn't matter but when I apply for credit they tell me my credit score needs to be over 200 to get credit and that the average credit in my area is 450 

    I also have letters thst state I can either hsve credit  becsuse my credit score has gone up or I can't becsuse it's gone down 

    If they went on my credit file I would never get credit I have 6 County Court judgements frim the 80s on my file 

    Also becsuse my credit score has gone up three months in a row my credit limit has been raised 

    Si I dint understand why you say the credit score doesn't matter 
  • Cher_Inactive
    Cher_Inactive Posts: 4,414

    Scope community team

    Hello @woodbine @lisathomas50

    Credit scores are used by creditors to determine how much of a risk it is to lend money to people.  Taken from the Citizens Advice webpage about this:
    When you apply for credit, you complete an application form which tells the lender lots of things about you. Each fact about you is given points. All the points are added together to give a score. The higher your score, the more credit worthy you are. Creditors set a threshold level for credit scoring. If your score is below the threshold they may decide not to lend to you or to charge you more if they do agree to lend.

    Different lenders use different systems for working out your score. They won't tell you what your score is but if you ask them, they must tell you which credit reference agency they used to get the information about you. You can then check whether the information they used is right.

    Because creditors have different systems to work out credit scores, even if you’re refused by one creditor, you might not be refused by others.

    You may be able to improve your credit score by correcting anything that is wrong on your credit reference file.
    It's clearly wise to avoid taking loans where possible though and excellent suggestion about money-saving forums by the way, it's surprising how saving bits here and there can make a difference.  
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  • Sandy_123
    Sandy_123 Member Posts: 2,186 Pioneering
    @woodiepicker12 hi there have you done a check on benefits checker to see if your getting benefits all your entitled to? Might be worth a try
  • lisathomas50
    lisathomas50 Member Posts: 4,695 Disability Gamechanger
    @Cher_Scope it's better to seek other ways to get help financially  I was just correcting thst credit scores do affect your credit score and do exist as @woodbine gave  incorrect information 
  • MarkM88
    MarkM88 Member Posts: 1,981 Pioneering
    edited May 23
    @lisathomas50 woodbine did not give incorrect information. The credit scores that the credit reference agencies use are not seen by anyone but you. 

    Each credit reference agency give you a made up number and they are different for each agency. 

    When you are told about a “score” it will be an internal score each financial organisation has allocated to you based on information you have provided and information from your credit files. 

    Btw, CCJs and defaults only stay on your credit file for 6 years, any from the 80s won’t be there anymore. 
  • MarkM88
    MarkM88 Member Posts: 1,981 Pioneering
    Hello @woodbine @lisathomas50

    Credit scores are used by creditors to determine how much of a risk it is to lend money to people.  Taken from the Citizens Advice webpage about this:
    When you apply for credit, you complete an application form which tells the lender lots of things about you. Each fact about you is given points. All the points are added together to give a score. The higher your score, the more credit worthy you are. Creditors set a threshold level for credit scoring. If your score is below the threshold they may decide not to lend to you or to charge you more if they do agree to lend.

    Different lenders use different systems for working out your score. They won't tell you what your score is but if you ask them, they must tell you which credit reference agency they used to get the information about you. You can then check whether the information they used is right.

    Because creditors have different systems to work out credit scores, even if you’re refused by one creditor, you might not be refused by others.

    You may be able to improve your credit score by correcting anything that is wrong on your credit reference file.
    It's clearly wise to avoid taking loans where possible though and excellent suggestion about money-saving forums by the way, it's surprising how saving bits here and there can make a difference.  
    Exactly this! It’s a score the creditor determines, not taken from your credit file. There’s a difference!
  • Cher_Inactive
    Cher_Inactive Posts: 4,414

    Scope community team

    @MarkN88 Thanks for that added clarification.  

    Just a general note - Let's keep this thread productive for the OP and in the friendly spirit underpinning our community :) I hope the replies have helped @woodiepicker12
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  • lisathomas50
    lisathomas50 Member Posts: 4,695 Disability Gamechanger
    As cher said and as a person who has worked in that type of industry credit scores determibe wether you get credit 

    Things don't get taken off your credit  file unless you have settled it  and lenders can see your credit score  

    They don't use the information from over six years ago  but it's still there if you have county court judgements

    I have a credit report every month   
  • lisathomas50
    lisathomas50 Member Posts: 4,695 Disability Gamechanger
    If you go on your credit report it shows you what lenders can see abd your credit score and recent credit history us what they see 
  • lisathomas50
    lisathomas50 Member Posts: 4,695 Disability Gamechanger
    The point was that woodbine said credit scores  don't exist when they clearly do 
  • Cher_Inactive
    Cher_Inactive Posts: 4,414

    Scope community team

    @lisathomas50 Yes credit scores do exist however I think what other members were trying to convey is that they vary between creditors and aren't fixed objective amounts allocated to someone.  I think there's a level of misinterpretation here so let's keep it friendly, as previously requested and as per our house rules, and not deviate the thread any further for the OP.  
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  • woodbine
    woodbine Community Co-Production Group Posts: 5,603 Disability Gamechanger
    @woodbine you say that the credit score doesn't matter but when I apply for credit they tell me my credit score needs to be over 200 to get credit and that the average credit in my area is 450 

    I also have letters thst state I can either hsve credit  becsuse my credit score has gone up or I can't becsuse it's gone down 

    If they went on my credit file I would never get credit I have 6 County Court judgements frim the 80s on my file 

    Also becsuse my credit score has gone up three months in a row my credit limit has been raised 

    Si I dint understand why you say the credit score doesn't matter 
    I don't say it doesn't matter I say that you don't have one, they are an invention by the CRA's and no one but you ever sees them, they are there purely to try and sell you there services, ask yourself this, do the credit reference agencies ever lend you money? or provide credit cards? the answer is no they don't.
    CCJ's drop off your file after six years.
    But as I said whilst non of us have credit "scores" we all have credit "history" and that is what any potential lender can see where they do a search, e.g missed or late payments, ccj's etc. Thats what they use when they decide to lend or not lend.
    I am a person with epilepsy not an epileptic, my illness doesn't define me.
  • MarkM88
    MarkM88 Member Posts: 1,981 Pioneering
    edited May 23
    As cher said and as a person who has worked in that type of industry credit scores determibe wether you get credit 

    Things don't get taken off your credit  file unless you have settled it  and lenders can see your credit score  

    They don't use the information from over six years ago  but it's still there if you have county court judgements

    I have a credit report every month   
    That’s incorrect though. 

    A creditor has their own internal scoring system, this is what they use. 

    The score on your credit files, which will be different on each one you check, is a marketing tool, meaningless, not seen by creditors and only by you. 

    It’s the credit history that they see. 

    CCJs and defaults get removed after 6 years regardless whether it was satisfied or not. 

    Edit: this link will help you understand the CCJs and defaults bit.

    https://debtcamel.co.uk/credit-record-good-news-bad-news/

    Edit 2: Cher’s link clearly explains how creditors score you and it’s based not on the score the CRA gives you. 
  • woodbine
    woodbine Community Co-Production Group Posts: 5,603 Disability Gamechanger
    I think it's an important point when advising the OP to correct some of the poor (i'm being polite) information that is being put forward as fact.
    I have number of years experience advising people about debt and credit elsewhere.
    I do have to say that the CAB don't quite get it right when they talk about credit scores and even some of the major websites also get their facts slightly wrong.
    Yes a lender will score you according to their own criteria but they can use any or all of the four main CRA's which will show them if you pay your debts in full and on time every month and they then make their own judgment on wether or not to lend you their money.

    @woodiepicker12 I hope the information has been of some help, and if you need further help then please just ask.
    I am a person with epilepsy not an epileptic, my illness doesn't define me.
  • MarkM88
    MarkM88 Member Posts: 1,981 Pioneering
    The CAB website actually explains it really well, it outlines that each creditor uses its own scoring system which is backed up by information held by CRAs but not scores the CRAs state you have. 

    I believe when it comes to financial matters yes the right advice is needed and agree with @woodbine fully. 

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