Borrowing Responsibly

How to prepare before you apply for a loan – what lenders are really looking for, the habits that raise red flags, and how to keep the cost down once you've borrowed.

Reviewed by Martin Bishop, Head of Customer Services · October 2026

Lenders look for stability first

After years of arranging loans, the thing we see make the biggest difference isn't a perfect credit score. It's stability. Lenders want to see that your life is settled, because a settled life is the best sign that a loan will be repaid. They look at four things in particular:

1

Your home

How long you've lived at your address. Moving often isn't a problem in itself, but years at the same place tells a lender you're settled.

The longer, the better
2

Your job

How long you've been with your employer. A steady job means a steady income to repay from.

The longer, the better
3

Your phone number

A mobile number you've had for years, not one that changes every few months.

The longer, the better
4

Your email address

The same address you use for everything else – not a new one made just to apply.

The longer, the better

You can't change how long you've lived somewhere overnight. But you can make sure a lender sees your stability clearly – so apply with the address, phone number and email you've had longest, and don't switch them just before you apply.

Keep your details the same everywhere

If someone applies in lots of places with slightly different details each time – a different email here, a different phone number there, a higher income on one form than another – it starts to raise red flags. Lenders share information, and inconsistent details can look like an attempt to hide something, even when it's innocent. Give the same, accurate details every time.

Before you apply: a five-minute check

  1. Write down what comes in – your own take-home pay, and your household income if you share costs with someone.

  2. Write down what goes out – rent or mortgage, utility bills, council tax, phone, travel, food and any other credit you're repaying.

  3. Look at what's left – could you pay the loan repayment from that every month and still cope with a surprise bill? If not, a loan could make things harder.

  4. Ask what it's for – a one-off cost is what short-term borrowing is for. Everyday bills that you can't cover every month are a sign to get free advice instead.

Only borrow what you need

It can be tempting to borrow a little extra while you're at it. Don't. Every extra pound costs you interest, and bigger amounts are harder to be accepted for – in our experience, far fewer people are accepted for £1,000 than for £500. Work out the real cost of what you need, and apply for that.

Repay as soon as you can

If you find yourself with spare money while you still have a loan, using it to pay the loan down is almost always the better deal. The interest on a short-term loan is far higher than anything that money would earn sitting in your bank account, so every pound you repay early saves you more than it could make.

You have a legal right to repay early, in full or in part, with no early repayment charge on loans of our size – just ask your lender for a settlement figure. See our FAQs for more.

If you need to borrow again

Once your loan is repaid, you're welcome to apply again if something else comes up – lenders will look at a new application on its merits. But if you find you're borrowing again and again just to get through the month, a new loan isn't the answer. That's the time to talk to a free, confidential debt adviser such as MoneyHelper or StepChange.

More guides: Customer Advice.

49%Representative APR

Representative example: £1,500.00 borrowed for 12 months. Monthly repayment is £154.12, total repayable is £1,849.47. Total cost of credit £349.47. Representative 49% APR. Credit broker not a lender. All loans are subject to status and only available to UK residents over the age of 18. Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk