Family Matters

Borrowing Money

Fair and straightforward lending.

Have you got a big purchase in mind, such as a holiday or new car, and want to spread the cost? Perhaps your cash is tied up? A loan could be the answer.

When you start looking into loans though, you could be in for a surprise. Many attractive interest rates seem to be available, but when you apply you might find that you don’t actually qualify for the advertised rate. The rate you are offered will depend on your individual circumstances, your chosen loan amount and term, and is subject to a credit check.

During a credit check, there may be an indication left on your credit report to show that it has taken place, which could then lower your credit score. However, there are lenders that use a ‘soft search’, also known as a ‘quotation search’, to check your credit report when you first apply. This will not leave any record of their search visible to other lenders (but you can still see it). So finding out if you’ll be accepted and the rate you’ll receive will not affect your credit score. Once you have chosen the loan that’s right for you and you confirm with the lender that you want to go ahead, only then is the credit check listed on your credit report.

You may wish to find lenders that offer a ‘soft search’ to check your credit history when you apply. Having a number of credit checks listed on your credit history could affect your credit score, which could increase the interest rate you are offered or even reduce your likelihood of being accepted for a loan.

How can Saga help?

Here are some helpful articles about credit reports, borrowing and more from Saga Magazine’s leading money writers.

the word LOAN spelt out on a calculator

Loan types explained

Here’s our guide to the different types of loan available.

An older man reads through his personal loan agreement

Could a loan save you money?

Find out in which circumstances it's worth borrowing money, even in later life.

A man preparing to apply for a loan online

5 things to do before a loan application

How to avoid some of the most common loan application pitfalls.

moral dilemma gifts

A dilemma over gifts and loans

When is money given to family a gift and not a loan?

Credit card report and loan application

How can I improve my credit report?

It is worth checking your credit report regularly, especially before applying for credit.

Man checking credit score

How to check your credit report

Chris Torney explains why it is sensible to check your credit report and how to go about it.

Credit cards caught on a fish hook

Top five mistakes that damage your credit report

Checking your credit report allows you to correct mistakes and protects against identity fraud.

Fifty pound notes and mixed coins

Why your credit report affects the cost of borrowing

A good credit report could give you access to better rates and deals.

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Borrowing designed for the over 50s. Discover ways of borrowing that are straightforward and won’t give you the runaround.

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