At Moneywise, we know that repairing your credit score can be difficult if you have struggled to repay monthly payments in the past. Thanks to our credit repair loan, you can begin to improve your credit score with a series of small, manageable payments over 12 months.
Unlike traditional loans, you do not receive any funds at the start of the loan when you take out a credit repair loan with Moneywise. When you open a credit repair loan, you’re committing to pay £5 per month to improve your credit rating. After 12 months we will share the payments you have made with you. We will also share the details of this loan with credit reference agencies, who will take this into account when calculating your credit score. This way, your credit score should have improved over the year.
How it works
– You open an account with Moneywise and get a £60 interest free loan.
– We put the £60 into a suspense account and hold onto the funds.
– You agree to repay £5 per month for 12 months to repay the loan.
– At the end of the 12 months we will give you back £30, the remainder covers administration.
– With the emphasis on regular repayments we treat the loan in exactly the same way as all our loans. So we will share your loan information with Credit Reference Agencies.
What if I stop making payments?
– We report all repayments made including missed payments so if you end the agreement before the loan is finished, we will put the account into default and write the loan off.
– Your credit file will show the default and we will recover our costs from repayments you have already made.
– You get nothing back.
– Your situation will be the same as when you started. At the end of the day, it’s your credit file. We are only offering help to repair it.
How to apply
- Click the button below to apply
- Fill in your details as accurately as possible
- Submit the form
- One of the Moneywise team will be in touch as soon as possible to confirm whether you have been successful
Frequently asked questions
Here at Moneywise, our team considers multiple factors before approving loan applications.
A. Is it affordable?
The first thing we consider is – is it affordable? We want to make sure that if we’re taking repayments for a loan, you’ll be able to keep up with this loan and your other commitments.
B. Is it realistic?
Next, we’ll consider if the loan repayment schemes are realistic. We do this by checking if you’re up to date with your rent or mortgage. We also look whether or not you’re making repayments for utilities and council tax. If these payments are up to date, we’ll see if you have enough disposable income to cover these – plus our loan repayment on top.
If your bank statements show low balances, for example, we will assess the situation further. This helps us understand if all your spending is necessary. If you’re spending lots of money on takeaways for example, we may suggest a change in spending habits to ensure you’re able to make repayments.
C. Is your credit check acceptable?
If we’re happy that the loan is affordable and realistic, we may also need to run a credit check on some of our loan products. We’ll check the credit report to see if there are any active CCJs. If so, are they recent and are you repaying them?
We’ll continue to look over your current and previous credit accounts. This will make sure that each statement is up to date and you’re making regular repayments.
Interest rates vary! Most loans are set at a 3% interest rate (42.60% APR). This is for new and existing members, and family loans will always be set at this rate. We offer payroll members loans with a 2% interest rate. We might also offer lower interest rates due to length of membership, the amount of savings you hold with us and if we’ve offered a secured loan.
If you’re worried about repaying your loan on time, contact our team as soon as possible.
It depends on your situation. If this is a short-term issue where one or two payments are going to be missed, we may be able to cover these from savings already held with us. If not, an agreement can be made with our credit control department to either temporarily reduce payments, or for the payments to be made at a later date.
In cases where this is a long-term issue, you’d be able to discuss your best options with our credit control department. The team will help you come to an agreement about how to pay going forward.
If your application is successful, our team will help you set up the details and repayments of your account. You’ll also be provided with information on how to access your savings, keep track of your loan balance and, if you request it, offers and advice on topping up.
If your application is unsuccessful, we’ll provide you with information on setting up a savings account. Our team will also offer guidance on any other financial assistance we are aware of that may be available at the time. Finally, we also provide details of other support services, such as the Citizens Advice Bureau, that may be able to help you.
There are multiple reasons why your application may have been declined:
- if you currently have an active individual voluntary arrangement (IVA), debt relief order (DRO) or are bankrupt
- if it is not affordable for you to make the repayments (see above)
- if you have recently missed repayments on an existing loan with us
- if there is a decline in your credit report
To find out more, contact a member of our team and we’ll explain your circumstances.
Yes. Whether you’re in full-time employment or in receipt of benefits, anyone is eligible to apply for a Moneywise loan if you meet our requirements, including living or working in the North East.