{"id":122431,"date":"2018-07-26T13:53:17","date_gmt":"2018-07-26T12:53:17","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=122431"},"modified":"2024-03-01T15:10:07","modified_gmt":"2024-03-01T15:10:07","slug":"benefits-credit-score","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/credit-score\/benefits-credit-score","title":{"rendered":"Do benefits affect your credit score?"},"content":{"rendered":"

The fact you receive benefits won\u2019t directly affect your credit score, although there are related issues that can indirectly affect your ability to be approved for a loan.<\/p>

Will benefits be visible on my credit file?<\/h3>

Your credit file<\/a> only details information about your borrowing history, payments to companies and debts. As such, there\u2019s no reason for details of your benefit payments to appear there.<\/p>

Will benefits affect my chances of getting a loan?<\/h3>

When considering your creditworthiness, lenders will explore your income to see whether you\u2019ll be able to afford to repay a loan in a timely manner. Many people who are on benefits have a low income, perhaps due to disability or unemployment. As such, they might find it hard to be approved for a loan from traditional lenders.<\/p>

For this group of people, it’s not the benefits themselves that are harming the chances of being approved for a loan; it’s the financial circumstances that made them eligible for benefits.<\/p>

If you\u2019re receiving benefits, but still have a decent income and a good credit history, there\u2019s no reason these payments should affect your chances of getting a loan.<\/p>

Make sure you check a lender\u2019s minimum eligibility criteria before applying for a loan, as this will commonly be the minimum level of income needed to be approved for the product.<\/p>

Tips<\/h3>

Do<\/h4>