At Jellyfish, we always carry out a full credit check as part of our automated decision making process and only lend to people we think can afford to repay on time. What this means is that if you have a poor credit score or a bad credit history, it may affect our decision to lend to you and we may be unable to offer you a payday loan.
If you have had problems with credit in the past, or are currently experiencing financial difficulties, you may think that you won’t qualify for a personal loan. But, even with a bad credit history you may still be able to borrow money. There are a number of providers who offer “bad credit loans” or “no credit check payday loans”, specifically designed for borrowers with a poor credit history. We’ve created this guide to help you decide if a “bad credit loan” is right for you.
What is a credit score?
Credit scoring is used by lenders to decide whether to lend to you or not. However, there is no universal credit score or rating and every lender scores you differently using their criteria. As part of their credit scoring process, also known as credit checking, a lender may source information about you from credit reference agencies. Experian, Equifax and Call Credit are the three main credit reference agencies in the UK who may hold information about you. Their data ranges from your basic personal details, to whether you’re on the electoral roll, your previous financial history and your repayment behaviour.
Why might you have bad credit?
If you have bad credit, it means you have a poor credit history and poor credit score. Reasons for having a poor credit score include:
- Late repaying of a loan
- Failed repayment of a loan
- If your debt has been passed to a debt collection agency
- Bankruptcy
- Vehicle or home repossession
What do lenders think of bad credit?
Lenders are less likely to lend you money if you have a bad credit history, because you may be at higher risk of falling behind on repayments for a loan, credit card, mortgage or whichever form of personal finance you are applying for.
Bad credit can also have an impact on your ability to apply for mobile phone contracts, car insurance, bank accounts and other products which require an examination of your credit history.
Why is a limited credit history bad?
A small or non-existent credit history will make it difficult to have a good credit score. This is because there is insufficient information about you for lenders to assess your repayment behaviour and how likely you are to pay them back.
How to find out your credit score
You can find out whether you have bad credit and what may be causing it by checking your credit report and credit score online with one of the credit reference agencies. Experian and Equifax offer a free trial, then a paid monthly subscription. However, you can check your credit report and score online and completely free for life with Noddle, a service provided by Call Credit.
More information about credit scoring can be found at Money Advice Service.
How to improve a bad credit score
- Check your record report and edit any details that aren’t correct
- Get on the electoral roll and close any outstanding bank accounts you no longer use
- Always try to pay your bills on time and consolidate any outstanding debts
- Don’t apply for too much credit in a short space of time and when you do apply, keep an eye on your credit file
Payday loans for bad credit
If you’re struggling to get a payday loan approved from a lender because you have a poor credit score, there are other alternatives. Some lenders advertise “payday loans for bad credit” which can be useful for borrowers with a poor credit score. Lenders who provide bad credit payday loans usually charge a much higher rate of interest as people with a poor credit history are generally considered a greater credit risk.
Does Jellyfish offer loans to people with bad credit?
We always assess each application individually, including running a full credit check and only lend to people we think can afford to repay on time. We may be unable to offer you a payday loan if you have a poor credit score or a bad credit history.
When can a Jellyfish loan be useful?
We offer a solution for occasional, urgent and short term cash needs. Jellyfish loans are not designed as a continual source of credit or for dealing with existing financial problems. If you’re struggling financially, please don’t apply.
How to apply for a Jellyfish loan
If you apply for a Jellyfish loan, please make sure that all the information you provide is accurate and up to date.
To apply for a Jellyfish loan, simply use the sliders on our Short Term Loan homepage or Flexi Loan homepage to select how much you would like to borrow and for how long. For information on how much our loans cost, please see how Short Term Loans work or how Flexi Loans work.
To apply for a Jellyfish loan you must:
- Be over 18
- Be a bank account and debit card holder
- Be a mobile phone owner
- Live in the UK
Answering yes to these questions means you can apply for a Jellyfish loan, but we can’t guarantee acceptance. We always assess each application individually and only lend to people we think can afford to repay on time.