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Poor Credit Score
Is it the end of the line for a Home Improvement loan?

Getting finance with a bad credit rating can be challenging, but not impossible. Traditional lenders, such as banks and building societies, may have more strict credit requirements and be hesitant to provide loans to individuals with poor credit scores.

What do you do, then, if your boiler breaks down and you have little or no savings to replace it. You can’t simply ‘do without’ especially during the winter.

Fortunately, there are alternatives to traditional mainstream lenders available who can help:

Guarantor loans: With a guarantor loan, you can have a family member or friend with a good credit history co-sign the loan agreement. The guarantor provides assurance to the lender that they will repay the loan if you default.

Secured loans: If you own a property, you may be able to obtain a secured loan by using the asset as collateral. This provides the lender with more security, which can increase your chances of approval. This can be quite a lengthy process and therefore unlikely to be the first choice for replacing a broken boiler.

Specialist lenders: Some lenders specialise in providing loans to individuals with bad credit. These lenders may be more willing to consider your application and often work alongside suppliers of goods or services (such as Boiler manufacturers and installers) allowing you to get your new boiler and finance for it at the same time.

Propensio Finance is a specialist lender and proud that, to date we have advanced over £40 million to customers with a less-than-perfect credit history, allowing them to pursue their financial goals in a broad range of different fields from replacement boilers to solar panels, and many others in between. We work with the suppliers of these products in their respective markets, providing them with a valuable ‘2nd line’ of lending to support those customers who may typically fail with a mainstream lender.

It’s important to note that borrowing with a bad credit rating typically comes with higher interest rates (we’ll cover that in a separate article) so it’s advisable to carefully consider your financial situation and the terms of any loan before proceeding. By and large, though, most lenders you should come across in the Point-of-Sale space will be regulated by the Financial Conduct Authority and will all provide the same level of duty and care to their customers – especially under the new Consumer Duty regime – regardless of their risk appetite.

It’s also possible to improve your credit score: While it may not be an immediate solution, taking steps to improve your credit score can increase your chances of obtaining finance in the future. Paying bills on time, reducing outstanding debts, and addressing any errors on your credit report can all contribute to improving your creditworthiness over time. Check out, or many other sites that will help you understand your credit score better.

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