Frequently Asked Loan and Adverse Credit History Questions

Here is a list of the loan questions we get asked most regularly here at Easy Loans Company. If you have any questions about our loans, you will more than likely find the answers here. Our FAQs are updated regularly, however please get in touch through our contact page ( if you can’t find what you are looking for, and we’ll be in touch to help you in any way we can…

Got a borrowing question review below

1> What is a loan for bad credit ?

This is a loan for people who have a less than perfect credit score due to past financial difficulty. Interest rates can often be higher than those offered by mainstream or high street Lenders.

2> I have adverse credit. Will I be still able to get a loan?

There are now a number of Lenders who will consider applications from consumers with adverse credit on their credit file. They will look at your current financial situation and make a decision based on your ability to comfortably meet the loan repayment now and in the future.

3> If I have a bad credit score, will that effect me getting a loan and borrowing money?

Yes, you will find it harder to obtain a loan. Lenders will identify you as a higher credit risk. There are Lenders who specialise in this type of finance though, and will make their decision based on your current situation rather than your previous financial issues.

4> If I borrowed money would that improve my credit rating?

Yes, as long as you make the repayments in full, and on time for the duration of your loan agreement. Making the payments you agreed to will show Lenders that you are responsible, and have good control over your finances. It takes time to correct any adverse credit of the past as it stays on your credit file for 6 years, but you can start to build up a good payment profile again by taking affordable new credit now.

5> Is there such a thing as a no credit check loan?

No. Lenders are obligated to assess your financial situation by looking at your credit file, and getting an understanding of your income and outgoings. Any Lender promising to make a decision without these checks is probably operating outside the regulatory rules and is best avoided. Find more information here

6> Do companies specialise in loans for bad credit?

Yes. There are brokers who will search through a panel of lenders who specialise in sourcing loans for consumers who have had credit issues in the past. The lending decision will still be based on your ability to repay the loan comfortably, but they will take in to account the reason for any past difficulty, and ensure you are now back on your feet and ready to service your credit again effectively.

7> How much more interest do I pay if I have adverse credit and need a loan today?

This can vary massively. It depends on the severity of the past credit problems, and also your current financial situation. There are no guarantees you will be able to get a loan today with a bad credit score, but using a broker who specialises in this area is the best place to start.

8> I’m behind with my ongoing repayments can I still get a loan?

If you are behind with your repayments and are regularly missing them, you are unlikely to be able to obtain further credit. Lenders want to see you becoming stable financially before allowing you to borrow further. If you are having financial troubles take a look at There you will find lots of free advice and tips on budgeting and money management. You will also find places where you can get free advice online, over the phone or face to face.

9> I have been refused credit before, and my application was declined. What are the next steps?

Where did you apply? If you applied through a broker who specialises in bad credit applications, and work with a panel of Lenders in this area of finance, you are unlikely to be approved for a loan else where. It’s advisable that you take a look at your credit file so you can get a true picture of where you stand when applying. There are free options for this., and are two places where you can view your credit score, and you can start putting right the wrongs of the past.

10> How much money can I borrow?

This is all down to your affordability. A Lender will look at your monthly income and outgoings to establish a payment which is affordable for you. Once they have this, they will make a decision on how much they can lend to you, at a payment which fits in to your budget.

11> Over what period do I have to repay the money borrowed?

This can vary depending on the size and type of the loan. Short term loans can be paid back between 1 and 12 months, and are generally under £1,000. Loan amounts over £1,000 are usually paid back over 12 months or over. The size of the loan will determine what is affordable to you. Longer loan terms will drop the monthly repayment, but be aware longer repayment periods will increase the cost of the loan overall.

12> If my loan is approved can it be paid back early and save me money?

Yes. On request, Lenders will provide you with a settlement figure for paying off the loan early. In the adverse credit loans sector, many lenders charge interest daily which means they will not penalise you for paying back early. You will only pay interest on the outstanding balance for as long as you owe the money. Other lenders may charge you a set interest rate period to repay early. It’s important to read your credit agreement before you sign with the lender so you know what you will have to pay should you be able to settle the loan early.

13> What happens if I miss a repayment?

This should be avoided if at all possible. Ideally the affordability check performed before you take out the loan should mean that you don’t find yourself in this position. However unforeseen things do happen, and if you do find you can’t meet the monthly repayment, it’s important you speak to your lender before the payment is missed. Lenders have an obligation to treat customers fairly, which includes working with borrowers in financial difficulty in an empathetic way.

14> Do I need to own a house to apply for a personal loan?

No. Personal loans are not secured against a house or any other asset. This means they are available to everyone and will be subject to reviews and affordability checks as part of your application.

15> How do I make repayments monthly?

Generally repayments are made by Direct Debit, but some lenders may decide to take repayments by card through a “continuous payment method”. A continuous repayment method is your authority to take the repayment on a specific date every month for the full term of the loan. Paying by card will mean that you are not open to charges issued by your bank if the payment declines. You can also cancel any continuous payment method with your bank at any time should you find yourself in the position, although this should be a last resort to avoid any further bad credit on your credit file.

16> How long will it take to receive the money?

This depends on the Lender. Some will fund on the same day of your application, some may take longer to go through. You will be advised of the process once you are accepted by one of the lenders on the panel.

17> What can I use the loan for?

Loans can be obtained for any legal reason. Whether it used to clear current outstanding credit, or to fund a one off purchase, there are Lenders who will consider your application.

18 > What is a consolidation loan?

A consolidation loan is further borrowing to bring all your current outstanding credit into one manageable monthly payment. Depending on the rate you are accepted for, the new payment can mean you are paying out less on a monthly basis to your credit commitments. It’s important to remember that spreading credit over a longer period can increase the cost of the borrowing overall, but a consolidation loan can be a handy tool to lower your monthly outgoings.

19 > What are Affordability & Responsible Lending Policies?

All Lenders are obligated to make sure they are only lending to people who can 1) Comfortably afford the repayments, and 2) Will suffer no financial detriment as a result of taking the finance. Lenders should review your application with your best interests at the heart of the decision. The Financial Conduct Authority regulate the consumer credit market and are very clear on their stance when it comes to consumer protection in the lending arena. Lenders have to make sure they adhere to the rules.

20> Credit file, credit rating and credit score, where do I find this information?

You can get free copies of your credit report on a monthly basis from by Call Credit, and by Equifax. Experian also have their Credit Expert service ( which will provide your credit report for free for the first month, but then charge a monthly fee to keep the service. There is also a service which can check all three for you for a monthly fee from

21> I’m an existing loan customer, can I borrow more?

Speak to your lender. Some Lenders will offer a “top up” facility once you have made a certain number of payments, and shown that you are comfortable paying back the loan. They will let you know if they offer this, and also whether you are eligible.

22> What is credit scoring?

Credit scoring is a process Lenders go through when establishing your suitability for obtaining credit from them. They will look at your repayment history, current outstanding credit, available credit, your presence on the electoral role and many other things when assessing your ability to service the new loan should you be successful.

23> What does Representative APR stand for and what does it mean?

The APR is the annual rate of interest applied to your total borrowing (including any fees added to the loan) averaged out over the full term of your loan agreement. The lower the APR, the lower the repayment. Representative APR examples are usually provided by Lenders to give you an idea of how much their average loan will cost. This gives you a tool to compare Lender’s deals when making a decision on which loan to go for.

24> What happens when I have applied online with Easy Loans Company?

Once you have submitted an application through the website, Monevo will use the information you provided to search their panel of lenders to find a solution for you. Lenders will look at your application go through your options and let you know if/how they can help. Details of an offer will be displayed to you, if you wish to go ahead please follow the instruction from the lender.

Note: You do not have to accept the loan that is offered to you.

25> How can I improve my credit score?

It is possible to start to improve your credit score once you know where you stand. Using one of the free credit report providers, there are a number of steps you can take to improve your chances of being accepted for credit in the future. More information on how to do this is here

26> How much does a loan cost?

Details of how much a loan costs will be provided in your credit agreement once you know which loan you have been accepted for. The credit agreement will show interest rates, fees, and the overall amount you will pay back over the term of the loan. It’s important that you are comfortable with the figures provided before you sign to accept the loan offer.

27> How much can I borrow today?

This will depend on your personal circumstances. Your current credit status and affordability will need to be assessed before any offer of a loan amount is made. Loans are available from £100 up to £25,000 through a variety of different lenders subject to status. Fill in the application for here to start the ball rolling, and we’ll looking for a loan for you

28> When will the repayments start if I’m approved for a loan?

This will vary from Lender to Lender, but it will generally be from the date you next get paid. Your credit agreement will state terms of your loan including a schedule of when the payments are due.

29> Can I get a loan if I’m on benefits?

Yes, as long you can afford it. The same affordability checks will be performed for all applicants, regardless of employment or income status. The amount of Lenders available to you will be less than for those who are employed, but as long as you can afford the loan repayment comfortably, there are options available to you.

30> Can I get an interest only loan?

No. Loans are offered on a capital repayment basis only. You will pay the interest and a portion of the interest back on a monthly basis through a fixed monthly payment.

31> We do not charge upfront fees for our service.

We may get paid a fee from your chosen lender should you choose to accept the loan offer. Details of this will be made clear to you on the credit agreement before you decide to proceed.

32> I’m struggling with my finances. Where can I get help?

Help is available from a number of sources if you are struggling to keep up repayments on your bills and other monthly outgoings. The Money Advice Service website ( is a great resource for tips on managing your money. If you have a clear idea of your income and outgoings after writing down a budget, and your income doesn’t cover your monthly commitments, you can get free debt advice from, or face to face from