We all have the idea that our credit score directly impacts the type of finances we can afford. Our credit scores are essential for determining 

  • How much we borrow and for how long, 
  • The interest rate we pay on loans, credit cards, 
  • Loans we take out.

However, how much does our credit score determine? How much should we pay? Lenders are researching the loan market by focusing mainly on 12-month loans.

Let’s understand this 12-month payday loan with no credit check from a direct lender deeply!

What does a Credit Report mean?

Your credit report is like a checklist. Every instalment that you repay on the decided time and in full, you get a step closer towards your good credit to the name of the agency that lent you the funds. The agency can be a credit card provider, a finance firm, or your loan lender. Sometimes, it could be your cell phone company. The company supplies your gas and electricity, and so on. If you miss a payment, there is a cross next to your name.

Then, all of these yes or no are puttedaltogether and thus create a huge part of your credit report with your credit profile. That is not all.

Your credit report also contains your “limits” and your “balances” information. Basically, the extent of the loan is the amount you can avail of from your credit cards and overdrafts. Your balance is what really ruined you. If the entire balance is almost revolving around your limit, that will reflect your credit score negatively. Remember that the bigger the difference, the better your credit report will be.

This is because when you get a small loan that you use, the lender will think that you are better able to manage the cash and that you are not dependent on the loan to pay off your debts.

Your credit report lists the people you have financial contacts with and the history of your address – once you’ve gone too far, lending companies like it. All of this information in the credit report (and other small details) is all added together, and you get your credit score.

What Difference Does Credit Score Make?

Your credit history creates a significant difference, but not up to that extent you might be thinking of. Since your credit score is one of the rare specialities to consider when constructing determinations. Although your credit history is an indispensable part of your credit report, thus almost every provider will look beyond the expected mark required.

For example, you may earn £20,000 miss out on a few payments, but the balance on your credit card and additional fees may be low. Someone may earn £40,000, not miss out on payments, but maybe close to being issued on their credit card and an overdraft. Most lenders would like to perform with you, while others would like to perform with individuals else.

Each lender has a “borrower profile” – the financial aspects of the type of people he enjoys borrowing. While the content of the borrower’s profile may extend to many companies, some lenders precisely follow certain types of borrowers that other lenders are not interested in.

A paramount aspect of your borrower’s profile is your existing financial circumstances – what you deserve, who you function for, how extensively you consume separately month, and so on. Each moment you apply for a credit card, loan, or loan, the lender will consistently like to comprehend how you are accomplishing the funds forthright away.

As you can notice, there are plenty of things behind the science and art of deciding whether to borrow someone or not. However, what about a 12-month loan?

Is it possible to do 12-month loans for bad credit scores only?

You can approach many different companies to get a 12-month loan from bad creditors. In fact, many of them have their own “borrower” profiles, as we discussed earlier in the blog.

A law called “Higher Short-Term Credit Cost” (HCSTC) covers most 12-month loans with the best direct lenders in the UK. They are a special set of rules that companies must follow when offering loans that last 12 months or less (including repayment day loans) when interest rates are higher than average. 

All HCSTC loan providers must be registered and licensed with the Financial Conduct Authority as the merchants require.

The special protections available for a 12-month HCSTC loan are:

  • Maximum interest rate per day up to 80p per £ 100 per loan
  • You will not be prosecuted for more than £ 10 if you overextend the loan payment.
  • if you add up, the amount you pay with interest and the amount you pay off the loan will not be more than the original amount you have borrowed.

As a borrower, these additional protections are automatically provided to you – you do not need to apply. But what if you think your current credit score is so bad that you have been considered applying for a 12-month loan?

Is it attainable to obtain 12-month loans for bad credit without a guarantor

It is possible to get a 12-month loan with a guaranteed person, but you have to ask yourself if it is really worth it.

12-month bad credit rating when you provide guarantee means:

  • HCSTC guidelines will not cover your loan, as well
  • If you fail to repay the loan, your guarantee will be required to repay the balance in full. If your guarantor is unable to pay, for whatever reason, they will try to get a district court judgment against you and your insurance provider.


Borrowed loans may be your way to access the finances you need. Nevertheless, there are exclusively a handful of lending companies. As compared to the bulk, it offers a 12-month temporary loan without a guaranteed provider. Consequently, we would recommend you to try it first.

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