“Bad credit” isn’t a single score or label. It’s a broad term used to describe a credit history that may include things like:

• Missed or late repayments
• Defaults or arrears
• County Court Judgments (CCJs)
• A limited or thin credit history

Lenders look at credit reports to understand how someone has managed credit in the past, but they don’t rely on this alone. Recent financial behaviour and affordability are often more important than older issues.

Some lenders are willing to consider applications from people with bad credit, but this depends on individual circumstances.

When assessing an application, lenders may look at:

• Whether the loan is affordable for you
• Your current income and outgoings
• How recently any credit issues occurred
• Your overall financial stability

Having adverse credit does not guarantee approval, and being declined does not mean you’ve done anything wrong. In many cases, a decline simply means the lender believes the loan may not be affordable or appropriate at that time.

When you apply through Swift Money, we help you explore whether a short-term loan may be available to you by matching your details with lenders on our panel.

The process typically works like this:

1. Check your eligibility - You complete a short online form. This uses a soft search, which does not affect your credit score.
2. We match you with lenders - Based on the information you provide, we share your details with lenders who may be willing to consider your application.
3. Lender assessment - If a lender chooses to make an offer, they may carry out further checks, including affordability assessments and, in some cases, a hard credit search.
4. Decision and funding - If approved and you accept the lender’s terms, funds may be paid into your bank account, sometimes on the same day, depending on the lender and timing.
   
   

Swift Money does not make lending decisions and cannot influence the outcome of an application.

All FCA-authorised lenders are required to carry out affordability checks before approving a loan. This is to help ensure borrowers are not given credit that they may struggle to repay.

Lenders will usually consider:

• Your regular income
• Your essential outgoings and existing commitments
• Your ability to repay the loan on time

If a lender believes a loan would cause financial difficulty, they may decline the application. While this can be disappointing, it’s intended to protect borrowers from further financial stress.

Payday loans are classed as high-cost short-term credit and are regulated by the Financial Conduct Authority (FCA). This means there are strict limits on what lenders can charge.

These include:

• Interest capped at 0.8% per day of the amount borrowed
• Default fees capped at £15
• A total cost cap of 100% of the amount borrowed (you will never repay more than double what you borrow)

Example - If you borrowed £200 for 30 days, the maximum you would repay (including interest and fees) would be £248. The exact amount depends on the lender and the loan terms.

Always review the full loan agreement carefully before accepting an offer so that you understand the total repayment amount and due dates.

Payday loans can be helpful in certain situations, but they come with risks, particularly for people who are already experiencing financial difficulty.

Potential risks include:

• Missing repayments, which can affect your credit record
• Additional fees if repayments are late
• Becoming reliant on short-term borrowing

This type of loan is designed for occasional, short-term use only. Repeated borrowing can become expensive and harder to manage over time.

Depending on your circumstances, there may be alternatives that are cheaper or more suitable than a payday loan, such as:

• An authorised bank overdraft
• Borrowing from a credit union
• Arranging a payment plan with a creditor
• Support from an employer, family member, or local authority
• Free, independent advice from debt charities or money guidance services

Exploring alternatives can sometimes help reduce costs or avoid taking on new credit altogether.

Before applying, it’s worth taking a moment to consider:

• Do you need to borrow this money right now?
• Can you comfortably repay it on time?
• Have you explored other options first?

Using an eligibility check can help you understand what options may be available, but it’s important to only proceed if the loan is affordable and appropriate for your situation.

If you decide to explore your options, you can check your eligibility with Swift Money using a soft search that won’t affect your credit score.

Checking your eligibility does not guarantee approval, but it can help you make a more informed decision before choosing whether to proceed.