Hi, I'm woodiepicker12! I have a bad credit score, where can I get a loan?
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woodiepicker12
Community member Posts: 2 Listener
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
Comments
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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.Scope also has some financial info: https://www.scope.org.uk/advice-and-support/budgeting-stay-out-debt/I hope some of this helps.
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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 onOnline Community Co-ordinator
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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 -
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 luckOnline Community Co-ordinator
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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.2024 The year of the general election...the time for change is coming 💡 -
@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 -
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.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.
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.Online Community Co-ordinator
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@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
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@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
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@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.
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Cher_Scope said: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.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.
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. -
@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 @woodiepicker12Online Community Co-ordinator
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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 -
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
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The point was that woodbine said credit scores don't exist when they clearly do
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@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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lisathomas50 said:@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
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.2024 The year of the general election...the time for change is coming 💡 -
lisathomas50 said: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 monthA 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. -
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.2024 The year of the general election...the time for change is coming 💡 -
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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