What is a credit check?

Typically a credit check is completed by a company every time you apply for credit, whether that is a credit card, loan, mortgage or even a mobile phone contract.

The information you provide is used to look up your credit file, which shows information about your past financial behaviour, such as your payment history on other credit, and how much credit you currently have. Based on your credit file, you’re typically given a credit rating, which is a simple indicator of whether you’re a good credit risk or a bad credit risk, but you may not be aware that this isn’t as black and white as it sounds. It’s all relative to the loan you’re applying for and the amount of risk the company is willing to take. For example, you need a good score to get a £100,000 mortgage from a high street bank, but you wouldn’t necessarily need the same score to get a £100 loan from Satsuma.

 

Do Satsuma Loans carry out credit checks?

As a responsible lender, Satsuma Loans does carry out a credit check as part of your application process and, like other companies, we use the information in your credit file and your credit rating to decide whether we will lend to you.

We offer short term loans up to £1000 and because we aim to lend a helping hand where others might not be able to, you don’t necessarily have to have a perfect credit rating to get a loan with us.

There are three credit reference agencies in the UK: Experian, Equifax and Call Credit. When we (and other lenders) do a credit check, we contact one or more of these agencies and ask to see your credit report. If you're unsure about the state of your credit file, you can  visit the agencies' websites yourself and sign up for a look at your credit score. The sites also offer hints and tips to help you improve your credit rating, so it's worth having a look. 

It’s not just about credit ratings!

We also look at your incomings and outgoings to consider what other financial commitments you have. We take your personal circumstances into account to ensure that any loan amount we offer you is affordable. This is part of our commitment to responsible lending.

Want to know what loan values and terms we offer? Use our loan calculator.

Use our loan calculator

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Loans can be repaid either monthly or weekly over a period of 3 to 12 months depending on the loan term chosen at application. The maximum APR for a loan is 1575%.