118 118 loans are designed for people with less than perfect credit

At 118 118 Money, we believe that hard-working people who’ve been turned down by their bank should still have access to a flexible loan deal. There are many reasons that you may have been unsuccessful in your loan application, your credit scores are only one. But if you believe you may have only so-so credit, we are happy to consider your loan application if you’re:

  • a UK resident, aged over 18
  • employed or self-employed
  • the holder of a UK bank account with a debit card
  • earning more than £700 net monthly income

You can borrow any amount between £1,000 and £5,000 and choose whether you want to spread your repayments over 12 months, 18 months or 24 months.

Like most lenders, we’ll calculate your credit score but your credit rating isn’t the be all and end all when it comes to our loan decision. The most important thing is that you’re able to manage your monthly payments so we’ll only lend you an amount that we think you can afford.

Find out more about bad credit ….

What is bad credit?

If you have bad credit it means that, at some point in the near or distant past, you will have failed to make your credit repayments on time, or you won’t have paid them at all. This means you will find it difficult to get approval for new credit.

Will I have bad credit after one missed payment?

You’re unlikely to be judged a bad credit risk if you’ve only missed the odd payment or two and have, subsequently, made those payments. However, if you have lots of missed payments, you’ve been referred to a debt collection agency, you filed for bankruptcy or you constantly maxed out on your credit cards, it will have had a negative effect on your credit score. Therefore, new creditors would see you as a high-risk customer.

If I have bad credit, can I fix it?

Evidence of missed payments are likely to stay on your credit file for three years and a County Court Judgment or bankruptcy will be remain on your file for six years. However, you can help to repair your credit file along the way by doing the following:


  • Keep well within your credit limits.
  • Pay credit card, mobile phone, utility bills and any other credit accounts on time.
  • Restrict the number of credit agreements you have.
  • As well as cutting up old credit cards or recycling old mobile phones, make sure you also cancel the relevant credit agreements.
  • Never take out a joint bank account or mortgage with someone who has bad credit or who can’t be trusted to manage their finances responsibly. Their bad credit record will have a negative effect on your credit rating.
  • Understand your credit profile and work to repair agreements with lenders or other merchants who reported that you owed them money.


If you can prove to lenders that you’re managing your finances more responsibly, they’re likely to give you a better credit score. All of us can have a dispute with a service provider or lender, but it is very costly to stand on pride and just not pay when you disagree. You should try to work out any disagreements of billed services and work to repair your credit history.

What is a credit score and how does it affect a loan decision?

Credit scoring is a method that creditors use to assess whether a customer represents a bad credit risk or not. It indicates how reliable you are at paying off your debts. It isn’t just banks who calculate credit scores; it is also credit card, utility, mobile phone and insurance companies, or even landlords and some government departments.

When you apply for a loan, your lender will use a credit bureau to conduct a credit check. Credit bureaus keep a record of your credit history so your lender will be able to see how well you have managed your credit repayments in the past.

On the basis of your credit history, a credit bureau will give you a numerical credit score and a lender may use this score to help them decide whether to offer you a loan. However, most lenders won’t just rely on your credit score. To find out what other information they use, read our page on how to improve your chances of getting a loan.

Am I allowed to see my credit score?

Yes, the Consumer Credit Act gives you the right to obtain your full statutory credit report at any time for just £2 per report.

It’s important to bear in mind that credit bureaus like Experian, Equifax and CallCredit calculate your score slightly differently so you may find that they each give you a different score. Therefore a ‘good’ score and a ‘bad’ score may vary widely, depending on which credit bureau you use. It’s important to read their explanation of what your score means.

How can I improve my credit score?

There are lots of things you can do to improve your credit score and some of them are surprisingly easy to do. Why not read our top ten tips for improving your credit score and make a start.

Taking action to improve your credit score not only increases your chances of getting a loan, it could also reduce the amount of interest you have to pay.

Credit bureaus can also help you to clean up your credit file, although you may have to pay a fee for their help and advice.

How will a loan affect my credit score?

118 118 Money loans are specially designed for people with less than perfect credit. Every loan application we receive undergoes a rigorous affordability test because we want to ensure that you can manage your repayments comfortably.

When you take out a loan with us, your credit agreement will show up on your credit history. If you make all your repayments on time, it will indicate that you’re financially responsible and help to improve your credit score.

Paying back your loan successfully also means that we’re more likely to loan money to you again and it will also make you more attractive to other lenders.

Compare us to credit lenders and instalment loan companies and see how much you can save by choosing a loan with us. It could be as much as hundreds of pounds for the same amount over the same term.

If you’ve been turned down for credit before, why not talk to us?

If your bank has refused you a loan, don’t despair. 118 118 Money looks beyond your credit profile and wherever possible, we try to say ‘Yes’ to customers who we feel are capable of managing their repayments. Our online application form is quick and easy to complete and we’ll give you a fast decision. If you’re accepted, you could have the money in 24hours.

Representative example: Amount of credit £1,810.48 for 24 months. Interest rate: 71.3% pa (fixed). 24 scheduled monthly payments of £143.48. Total amount repayable: £3443.52. Representative 99.9% APR.

Rates from 35.9% APR - 99.9% APR fixed.