Cara Bradley

Written by

Cara Bradley

5 min read

Updated: 12/01/2024


If you need money to cover the cost of an emergency but have a less-than-perfect credit score, you may feel apprehensive about applying for a loan.

Credit checks are designed to look into your financial history and give lenders an idea of how you’ve managed any credit you’ve had in the past. Lenders will also want to check that a credit product is affordable for you based on your financial circumstances.

In line with responsible lending guidelines, the Financial Conduct Authority (FCA) requires its registered lenders to carry out credit checks as part of any application for credit, such as a credit card, loan, or mortgage.

Viva Money and all the lenders on our panel are authorised and regulated by the FCA. We do not work with any lenders who claim to offer loans without asking potential customers to undergo a credit check.


You may wish to steer clear of any lender advertising loans without a credit check. It is highly likely that they are not a legitimate or FCA-authorised company.

You can check to see if a company is registered with the FCA by clicking here.

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What is a credit check?

A credit check provides the lender with an insight into your previous borrowing habits and financial history. This gives them an idea of how likely you are to be able to repay the loan.

While it may feel daunting, it’s important to remember that credit checks are in place to help protect you.

Taking out a loan you cannot afford to repay could have all sorts of consequences. Falling behind on or failing to make your repayments could result in late charges, additional fees, a decline in your credit score, spiralling debts, and increased financial stress.

Different types of credit check

You may have heard of two different types of credit check: hard and soft searches:

  1. Soft credit check

    Soft searches are designed to take a quick look at your credit history. Many credit brokers, including Viva Money, use a soft search to initially assess how likely you are to be approved for a loan.

    Soft searches do not affect your credit score in any way and will only be visible on your credit file to you and the company who carried out the search.


  2. Hard credit check

    A hard credit check provides a thorough look into your credit profile. Lenders will carry out a hard credit check and use the information to decide whether to offer you a loan.

    Hard credit searches can remain on your credit file for up to 12 months and will be visible to other potential lenders. Too many hard searches over a short space of time may have a negative impact on your credit score.

Who can apply for a loan?

Each lender has their own eligibility criteria but, generally, to apply for a loan you must:

  • Be over the age of 18 years old;
  • Be a UK resident with a UK address;
  • Have a UK-issued bank account and valid debit card; and
  • Have a regular source of income paid into your bank account.

Can I get a loan with bad credit?

It may still be possible for you to get a loan, even if your credit score is a little worse for wear.
Some of the trusted lenders on the Viva Money panel specialise in loans for those with a poor credit score.

If you have bad credit and you are approved for a loan, you might find that your borrowing choices are limited, and you may be offered a high interest rate.
A greater credit score could increase your options and unlock more competitive interest rates.

How can I improve my credit score?

The good news is that a low credit score doesn’t have to be for life. There are a number of ways that you can work on improving your score, starting today.

  • Ensure that your credit report is up to date with your current information, and check for any errors, including spelling mistakes.
  • Registering to vote will link you to your current address and make it easier for lenders to identify you.
  • Pay your bills and any current credit commitments on time each month. Late or missed repayments can seriously harm your credit score.
  • If you have an existing credit card, stay well within your credit limit.
  • Avoid undergoing too many hard credit searches in a short period of time.

How can I search for a loan with Viva Money?

Searching for a loan with Viva Money is straightforward. We’ve broken the journey down into four simple steps.

Step one

Choose your ideal loan amount and repayment term and fill out our online form. This should take less than five minutes.

Step two

Using the information provided, we will run a soft credit search and present your application to our panel of lenders. In just 60 seconds, we’ll let you know if we have found you a suitable match.

Step three

If you’ve been pre-approved for a loan, you’ll be redirected to the lender’s website where you’ll be required to complete a few further checks, including a hard credit search.

Step four

If the lender is happy with the outcome of their checks, you’ll be sent a loan agreement. Read through this carefully before signing. Remember, you are not obliged to continue with a loan application if you do not feel your loan offer suits you or your requirements.

Repay the balance of the loan by making monthly payments.

When will I receive my loan?

Some of the lenders on our panel can send your money on the same day your application has been approved. The time it takes for the money to show as available in your account will depend on your bank’s policies and procedures.


I’m worried about money; what can I do?

If you’ve taken out a loan that you’re struggling to repay, you should contact your lender as soon as possible. We understand that this may feel really daunting, but they will appreciate you getting in touch and will work with you to find a suitable solution.

Money worries can quickly consume us and leave us feeling isolated. Whatever you’re facing, it’s important to remember that you don’t have to go through it alone.

There are several websites offering free, impartial money management and debt advice, including MoneyHelper, Citizens Advice, and National Debtline.
Viva Money are proud to have teamed up with charity StepChange to launch a free, online Money Health Check quiz. The answers you provide will remain confidential and generate advice to help you with your next steps to taking back control.