Can I get a home improvement loan with bad credit?

As a homeowner, you’ll know that making essential home improvements can be complex, unexpected and costly but If you don’t keep your home in good repair, it could become inhabitable and depreciate in value.

For many of us, the biggest challenge when it comes to home repairs is the cost; unless you have savings or enough income to afford the work, financing a home improvement project can be challenging. A home improvement loan may be a good option to help you spread the cost over a longer term, so that you can fund work to your home when you need to.  

If you’re looking to borrow money to help fund repairs, you may be worried about how a loan may affect your credit and if you already have a low credit score, you may be unsure on your options.

Without good credit, you may have fewer borrowing options available but depending on your financial situation, you may be able to get a home improvement loan even with a bad credit history.

How to pay for home improvements with poor credit

According to a recent report by TotallyMoney and PwC UK, over 20 million UK adults are financially under-served and have difficulty accessing credit from mainstream lenders.

Mainstream lenders are often unable to help those with poor credit because of their lending criteria and if you can access funding, you may only qualify for products with higher interest rates.

It’s always a good idea to consider ways to improve your credit rating. High credit scores are attractive to lenders and can increase your borrowing opportunities which means you can obtain better products and lower interest rates.

Can I apply for a Lendology loan if I have a low credit score?

At Lendology, we have an holistic approach to lending and believe that people should not be excluded because of their credit history. We welcome applicants from all homeowners including those who may be perceived as having a ‘bad credit history’.

By lending responsibly, we consider everyone individually and take into account your financial situation and unique circumstances during our assessment. Our lending decisions are made by people for people so that we can offer bespoke repayment plans tailored to each of our customers.  

We do not punish customers with poor credit. Our loans are funded by local councils. This means that we can offer you a low interest rate. Your local council policy will determine who is eligible to apply for a loan and the home repair works that are eligible. For more information, please contact us.

Representative Example (4% fixed interest rate, Representative 4.2% APR).

Loans are subject to status and are typically protected by a Title Restriction.