How to check if you are likely to be eligible for a loan

If you’ve been thinking about taking out a loan, but you’re not sure if you are eligible,

here’s what you need to consider.   

Whether you’re planning a wedding, home improvements or the trip of a lifetime, a Lloyds Bank Personal Loan is a simple way to borrow money. Before you apply, however, it’s worth checking if you’re eligible. If you bank with us log on to Internet Banking to see how much you could borrow and how likely you are to be approved.

How is loan eligibility calculated?

Lenders typically look at several factors when deciding if, and how, they will offer you a loan. The main points they consider are your income, your employment status and your credit score.


Your loan application is more likely to be approved if you have a steady income, because responsible lenders want to see that you have enough money to cover your monthly loan repayments.


If you’re in a full-time job, you’re more likely to receive a loan than if you’re unemployed, or in part-time or short-term employment.

Credit score

A good credit rating shows the lender that you have a track record of repaying loans on time. This means you represent a lower risk and they are more likely to offer a loan and, sometimes, better rates.

How you can improve your loan eligibility

Lenders 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.

Six ways you can improve your credit score

  1. Make sure your name is on the electoral roll. This builds credibility with lenders.
  2. 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.
  3. Reduce your plastic. Minimise the number of credit and store cards you use.
  4. Check your credit files. It’s 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.
  5. Keep on top of your paperwork. Don’t fall behind when paying bills.
  6. Limit your credit applications. If you apply for a lot of credit in a short space of time, lenders might conclude you’re 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.

A Personal Loan is just one type of finance and may not be right for your circumstances. Read our guide to borrowing options to find out more.

Keep in mind

Our Personal Loans are only available online to existing Lloyds Bank customers who have held a Current Account for at least one month. Or, if you have a credit card, mortgage or existing loan with us you can apply over the phone.