Medicred is here to support you through a simple and transparent process. While applying for a loan is straightforward, we carry out important checks to ensure that any credit offered is affordable and suitable for your needs. Here’s how it works:
- Complete the Application Form – Visit our website and fill out the loan application form with your details. Ensure all information is accurate and up to date.
- Decision in Principle – we will process your application and complete a Credit & Affordability Check then provide you with a decision quickly, usually within minutes. Subject to automated checks and availability of information, some applications may require manual review. If further checks are required, it may take up to 24 hours.
- Identity (IDV) Check – You will need to provide your proof of identity (driving licence or passport with an NFC chip). We will send you a link to complete this at a convenient time.
- Affordability Assessment – Affordability Assessment entails an Open Banking check which includes a full ID verification and open banking data collection. The results of the Open Banking check include, but not limited to:
- Bank account details;
- Income;
- Expenditure; and
- Account Balance
- Loan Agreement – Once you have passed the Identity and Affordability checks we will send you a loan agreement to check and e-sign.
- Direct Debit Set-up – We will send you a link to authorise your bank for the monthly Direct Debit payments.
- Funds Released – Once all the steps are complete we will release the funds to the approved bank account.
If you have any questions during the process, feel free to contact us for assistance.
We are committed to ensuring all customers can understand our products and services clearly. If anything is unclear, please contact us, we’re here to help.
We recognise that customers may experience circumstances making them vulnerable. If you’re facing health, financial, or personal challenges, notify us at your earliest convenience so we can offer additional support. Our Vulnerable Customer Policy can be found here.
Frequently Asked Questions #
How do I Apply For A Loan #
How Long Will My Application Take?
We will process your application and complete a Credit & Affordability Check then provide you with a decision quickly, usually within minutes. Subject to automated checks and availability of information, some applications may require manual review. If further checks are required, it may take up to 24 hours.
What is a Credit & Affordability Check?
A credit and affordability check is a process lenders use when you apply for credit (like a loan, mortgage, or credit card) to decide if they should lend you money, and how much.
It generally has two key parts, though they are often done together as part of the overall assessment:
1. Credit Check (Creditworthiness)
This part focuses on your past financial behaviour to determine your creditworthiness—how likely you are to repay the debt.
What it looks at:
- Credit History: Your record of borrowing and repaying debt (loans, credit cards, mortgages).
- Credit Score: A numerical rating based on your history, indicating your risk level as a borrower.
- Defaults and Late Payments: Records of missed payments or accounts that went into default.
- Current Debts: Existing credit accounts, balances, and credit limits.
The Goal: To assess your reliability and financial responsibility in managing credit over time.
2. Affordability Check
This part focuses on your current financial situation to determine if you can realistically afford the new repayments without experiencing financial hardship.
What it looks at:
- Income: Your salary, wages, and any other income streams (benefits, investments, etc.). Lenders will often ask for payslips or access to your bank statements as proof.
- Expenditure (Outgoings): Your regular, committed monthly expenses, such as:
- Rent or existing mortgage payments.
- Utility bills and council tax.
- Existing loan and credit card repayments.
- Essential living costs (food, transport, childcare, etc.).
- Disposable Income: The amount of money you have left after all essential costs are covered, which shows your capacity to make the new loan repayments.
The Goal: To protect you from taking on unmanageable debt, and to protect the lender from defaults.
How do I check the status of my loan application?
Please email admin@medicred.co.uk if you have not received a response regarding your loan application.
Why Was My Loan Application Rejected?
Your loan application may have been declined due to one or more of the following reasons:
- Credit History Issues – A low credit score, missed payments, or defaults on previous agreements may indicate a higher risk.
- Affordability Concerns – If your income and expenses suggest that repayments may be unaffordable, the application may not meet responsible lending criteria.
- Incomplete or Incorrect Information – Errors in your application or missing documents can impact the decision.
- Identity Verification Issues – If we are unable to verify your identity or financial details, we may be unable to proceed.
If your application was declined, you may be able to reapply in the future if your circumstances change.
