How to get a loan
Before you apply, checking a couple of things, such as your credit score and if you are eligible, could help you get approved for a personal loan.
Loan eligibility and affordability
One of the first things to check when applying for a loan is to make sure you are eligible to apply for one. This is also a good time to look at how much you need to borrow and how much you can repay each month.
What we look at when deciding to offer loans
We typically look at several factors when deciding if, and how, we will offer you a loan. The main points we consider are your income, your employment status and your credit score.
How you can improve your credit score
We will make a decision about your eligibility based partially on information held about you by credit reference agencies, such as Experian, TransUnion and Equifax.
This credit information helps to build a picture of you and your financial history. While it is not always possible to find a better paid job and increase your income, you can improve your credit rating.
Here are six ways you can improve your credit score:
- Make sure your name is on the electoral roll. This builds credibility with lenders.
- Review your debt. Consider how much you owe across all your borrowings and if you can consolidate or reduce your debt. If you need help, there is free and impartial advice widely available.
- Reduce your plastic. Minimise the number of credit and store cards you use.
- Check your credit files. It is worth seeing if there are any mistakes or fraudulent activity recorded against your name. Report any errors and get them corrected. Credit reference agencies (CRA) Experian, TransUnion and Equifax are obligated to give you a copy of your credit report, free of charge. Each may hold different information on you, so it is worth contacting all three.
- Keep on top of your paperwork. Do not fall behind when paying bills.
- Limit your credit applications. If you apply for a lot of credit in a short space of time, lenders might conclude you are struggling financially. Look for quotes from lenders that do ‘soft’ searches which are not recorded by CRAs and will not impact on your credit score.
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS).
Telephone calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help us improve our quality of service.