You won’t get a bad credit rating simply for having a Provident loan.
It’s a common misunderstanding, but getting a Provident loan won’t give you a bad credit score if you make all your repayments on time and in full. In fact, it could help improve it.
As a rule, having or applying for an unsecured short-term loan – which is what doorstep, online and payday loans are – can be looked at negatively by some lenders as the impression is that people only apply for them when they’re in tough financial circumstances.
However, most Credit Reference Agencies don’t disclose the names of the lenders you lend money from and therefore they cannot discriminate.
Some lenders believe that people with a bad credit rating are bad at managing their money. However, at Provident, we believe in giving people a helping hand when they need it most so we look at people’s circumstances, including their affordability to assess whether they can afford to make repayments and not just their credit rating.
Yes, it could, just like any other loan or credit might. Your credit score will get better if you repay your loans and credit in full and on time. That means repaying everything you borrow plus the interest, and not missing a payment.
The more evidence there is on your credit report of you making your repayments, the more likely lenders are to trust you and lend to you.
Repaying early may help improve your credit rating too, if you’re in a position to do it as repayments are recorded on your credit rating.
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Will taking out a provident loan give me a bad credit score