Affordability assessment
Credit scores & reportsOverview
In the UK, lenders must check affordability as part of responsible lending. This is separate from your credit score and focuses on what you can realistically afford each month.
Affordability checks often review bank transactions, existing commitments, and spending patterns. Two people with the same credit score can receive different outcomes if their affordability differs.
Why it matters
- It influences approval decisions even when your credit score is strong.
- High essential spending can reduce how much you can borrow.
- It affects borrowing limits, not just yes/no decisions.
Quick tips
- Keep essential spending stable in the months before applying.
- Reduce unused or expensive credit commitments where possible.
- Avoid taking on new monthly commitments before a major application.
FAQs
Is an affordability assessment the same as a credit check?
No. A credit check looks at your credit history and score, while affordability looks at your income and spending to see if repayments are realistic.
Can a lender decline me even if my score is good?
Yes. If your income or spending suggests repayments would be difficult, a lender can decline on affordability grounds.
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