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.
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 circumstances, you may still be eligible to apply for a home improvement loan.
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 may have access to a wider range of products and potentially 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 loans may be available at competitive fixed interest rates, depending on eligibility and council criteria. 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.
Loans are subject to status and are typically protected by a Title Restriction.
Missing payments could affect your credit rating and ability to obtain credit in the future.
A Title Restriction means that you may not be able to sell your home without our permission unless the loan is fully repaid.
Representative Example (4% fixed interest rate, Representative 4.2% APR).
This is a financial promotion approved by Lendology CIC.
