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You might have thought you knew how to keep your credit score in good shape. You may, for example, have been diligent in making regular payments on time and staying well within your credit limit.

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However, if you have recently been turned down for a loan, and your credit score turns out to be the crux of the problem, you might understandably wonder what went wrong.

The chances are that, over a lengthy period of time, you have fallen into habits you didn’t realise were blighting your credit history. Here at CashCompare, we can help provide you with access to loans for bad credit in the UK, while you recall whether you have been prone to any of the following credit-busting tendencies…

It's essential to consider your financial situation before applying for a loan. Our partnered lenders perform rigorous creditworthiness and affordability assessments to ensure that any loan provided is manageable for you, aligning with responsible lending practices.

Only just managing to ‘get by’ on your income

Only just managing to get by on your income

You might understandably think: “As long as I’m meeting all of my financial obligations, why should it matter how much money I have left over?”

Indeed, if you have a high salary, you might not be reticent about living in a large mansion with hefty energy costs attached. You may also rarely hesitate to replace your smartphone on an annual basis, even if you do so by shelling out on a high-end model like the iPhone 15 Pro Max.

Now, herein lies the rub: such a nonchalant attitude to extravagant spending can risk leaving you with so little remaining disposable income month after month, that a lender reckons you might too easily struggle to “service” the debt you want them to hand you.

Regularly changing your home, banking provider, or credit card

Regularly changing your home banking provider or credit card

Lenders feel more comfortable giving loans to people whose circumstances have long remained at least relatively consistent. After all, major changes in those circumstances could have implications for a borrower’s ability to keep making their loan repayments to the previously agreed schedule.

So, a prospective lender might be concerned if they notice that, in recent years, you have moved home a lot or often jumped from one bank or credit card to another. In the lender’s eyes, an erratic pattern like this could suggest that you are facing a volatile financial situation and fighting to contend with it.

Online gambling where you stay within your means

Online gambling where you stay within your means

It’s easy to think that online gambling is a harmless pastime as long as you pursue it only with money you own rather than borrow.

If you do have plenty of spare money at your disposal, you might even feel like a spoilsport for not succumbing to the urge to gamble online. Online gambling has risen significantly in popularity due to “freemium” mobile apps that are free to download but allow for “in-app purchases”.

Be warned, though, your credit report could include details of how often you spend money with gambling platforms. If this financial outlay occurs very often, the lender might fear that you are only really seeking to borrow money as a means of funding your gambling habit.

Please remember, borrowing to fund habits or cover financial shortfalls can lead to further financial issues. Consider your ability to repay a loan without worsening your situation, and seek financial advice if you're unsure.

It does bears emphasis that not all lenders will make this assumption. Such risks are why our team here at CashCompare turns to various lenders when helping individuals to find attractive loans.

By filling in and submitting the loan application form built into our website, you could soon learn more about what your options are for bad credit loans in the UK. Crucially, there will be no obligation for you to accept any particular offer that might be presented to you by one of our lenders – you will always have the option of simply walking away.

This blog is provided for informational purposes only and does not constitute financial or legal advice. We encourage you to conduct your own research or consult with a professional advisor to ensure that the information fits your specific situation.

"Warning: Late repayment can cause you serious money problems. Always consider if borrowing is the right option for you and ensure you can repay your loan." For help, go to moneyhelper.org.uk.

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