We get a lot of questions about eligibility, and why we accept some loan applications but can’t accept others.
Here is some information we think might be useful.
What you need to know before you apply for another item with Fair for You:
- You need to have paid 1/3 of all active loans before you’re eligible for another item
- You can have up to 3 loans at a time
- You can make extra payments at anytime online, via the phone or on livechat (this also reduces the overall interest)
- After 6 months of good payments you are invited into the Good Payers Club, with access to a wider range of items including TVs, mobiles & holidays!
Credit Files and How We Look at Them
We’re now in the best position to view and take control of our own files. All the big Credit Reference Agencies, such as Noddle, Clearscore, Experian etc, have now made it FREE to view your credit file.
What does Fair for You Look For?
Lenders are always looking to assess the likelihood that you will repay a loan. Most lenders use your credit score to judge this, but at Fair for You we don’t.
We review every application individually and look to see if the loan is affordable, and that you’re managing your existing credit.
We also look for the following:
- Your Address – Is it stable?
- Are you on the Electoral Register? If not, get on it, it improves your score.
- Have you told us about a previous address? We can see if you haven’t so make sure you put it on the application form.
You may have one, but what are you doing about it to get rid it? A CCJ tells a new lender that you didn’t contact/make agreement with an old lender.
Lots of CCJs shows a pattern of that behaviour.
- Are you repaying your existing credit?
Lenders have a duty to ensure that a new loan is affordable for you. If we can’t see that you’re managing your existing credit, we won’t be able to lend to you as we have to justify to our regulators that we lend responsibly.
Have you got them on your file? Are you doing something about it to slowly pay them off?
It makes a difference for us to see you are trying to manage them.
So don’t bury your head in the sand!
Defaults with small balances under £100 may be small and forgotten, about they still affect your file.
Best thing to do is try and pay these off slowly.
Challenge – How to Improve Your Credit Score
We all spend hours on Facebook, Instagram or watching TV. Just take 10 mins out of that every month and review your credit file to keep on top of it.
You’ll be amazed how little things can improve your score.
Now I have a challenge for you.
Look at your file as if you were a lender, lending your own money. WOULD YOU LEND TO YOU?
IF NOT, there are things you can do to improve your file!
Just Google ‘Free Credit File’. All the Credit Reference Agencies will come up and they all have guides on how to make improvements.
Hope that’s useful to you!
Any questions please leave a comment and we’ll get back to you.