Good Credit Loans

Choose Wisely helps you compare and choose the best loan options tailored to your needs. Discover what loans your likely to accepted for, how much you can borrow, and over what term.

Table of contents

Written by Mark Grimley
Read time: ~5 mins
Published: 28th September 2023

What Loans Can I Get with a Good Credit Score?

With a good credit score, you have access to various loan options. Here are some of the most common types of loans available to individuals with good credit:

  • Personal Loans: These are versatile loans that can be used for various purposes, such as debt consolidation, home improvements, or major purchases.
  • Car Finance: If you're looking to buy a new or used car, a good credit score can help you secure favourable terms and interest rates on auto loans.
  • Home Loans: Good credit can open doors to favourable mortgage rates when you're considering purchasing a home or refinancing your existing mortgage.
  • Credit Cards: Having good credit makes you eligible for credit cards with attractive rewards programs, lower interest rates, and higher credit limits.

How Much Can I Borrow with Good Credit?

The amount you can borrow with good credit depends on several factors, including your income, financial obligations, and credit history. Generally, individuals with good credit scores have access to larger loan amounts compared to those with lower credit scores. Lenders take into account your creditworthiness and ability to repay the loan when determining your borrowing limits. It's important to borrow responsibly and only take on what you can comfortably afford to repay.

How Much Will a Loan Cost If I Have Good Credit?

The cost of a loan when you have good credit is influenced by the interest rate and any associated fees. Lenders offer competitive interest rates to individuals with good credit scores, which means you'll likely receive more favourable terms. The exact cost of your loan will depend on the loan amount, term, and interest rate offered by the lender. Use our Eligibility Checker tool to explore different options and find the best loan with favourable terms that suit your needs and budget.

How Does Having a Good Credit Score Affect Me Getting a Loan?

Having a good credit score significantly increases your chances of getting approved for a loan. Lenders consider your credit score as an indicator of your creditworthiness and ability to repay the loan. A good credit score demonstrates responsible financial behaviour and gives lenders confidence in your ability to manage credit. With good credit, you're more likely to receive loan offers with competitive interest rates and favourable terms.

Where Can I Get a Loan for Good Credit?

Choose Wisely offers an Eligibility Check service that simplifies the process of finding the right loan for you. Our platform allows you to submit a short application form, and in return, you'll receive personalised loan options from a wide lending panel. We work with reputable lenders who specialise in offering loans to individuals with all types of circumstances. Compare the loan options, review the terms and conditions, and choose the loan that fits your needs.

What Are the Pros and Cons of Good Credit Loans?

Like any financial product, good credit loans have their pros and cons. Here's a quick overview:

  • Access to competitive interest rates
  • Greater loan options and flexibility
  • Potential for larger loan amounts
  • Improved chances of approval
  • Borrowing more than you need can lead to unnecessary debt
  • Failing to make repayments on time can harm your credit score

It's essential to weigh the advantages and disadvantages carefully before making any financial decisions. Choose Wisely provides the tools and information to help you make an informed choice.

Are There Any Alternatives to Good Credit Loans?

If you have good credit but prefer alternative options, you might consider the following alternatives:

  • 0% Purchase Credit Cards: These cards offer an interest-free period for purchases, allowing you to spread the cost over several months without incurring interest charges.
  • Peer-to-Peer Lending: This type of lending connects borrowers directly with individual investors, bypassing traditional banks and potentially offering more flexible terms.
  • Secured Loans: If you have valuable assets like a home or a vehicle, you can explore secured loans that offer lower interest rates due to the collateral provided.

Consider your circumstances and financial goals before choosing an alternative option that aligns with your needs.

Am I Guaranteed to Be Accepted for a Loan If I Have a Good Credit Score?

While having a good credit score increases your chances of being approved for a loan, it does not guarantee automatic approval. Lenders consider various factors when reviewing loan applications, including income, employment history, and overall financial stability. It's important to provide accurate information, demonstrate your ability to repay the loan, and meet the lender's eligibility criteria.

What Is Considered Good Credit?

Good credit is typically reflected by a credit score within a certain range. Although credit scoring models may vary slightly, a credit score of around 670 or higher is generally considered good in the UK. Lenders use credit reference agencies to assess your creditworthiness based on your credit history, payment patterns, and other factors.

Will a Loan Affect My Credit Score?

Taking out a loan and making regular repayments can positively impact your credit score. It demonstrates your ability to manage credit responsibly and make timely payments. However, missed or late payments can negatively affect your credit score. It's important to borrow responsibly and make repayments on time to maintain and improve your creditworthiness.

How Long Will I Have to Pay Back My Good Credit Loan?

The duration of your good credit loan depends on the loan terms agreed upon with the lender. Personal loans typically have repayment terms ranging from one to seven years. Mortgages, on the other hand, commonly have terms of 25 years or more. It's crucial to review the loan agreement carefully to understand the repayment period and associated obligations. Choose Wisely can help you find loan options with suitable repayment terms for your specific needs.

Frequently Asked Questions

Can I apply for a loan if I have a poor credit history?

Yes, Choose Wisely specialises in helping individuals with poor credit histories find suitable loan options. We work with lenders who consider applicants with various credit profiles.

How long does the loan application process take?

The loan application process varies depending on the lender and the type of loan. Some lenders offer instant decisions, while others may take a few days to process your application.

Can I repay my loan early?

Many lenders allow early repayment, but it's important to check the terms and conditions of your loan agreement. Some lenders may charge an early repayment fee, while others may not.

What if I can't make my loan repayments?

If you're experiencing difficulty making loan repayments, it's crucial to contact your lender as soon as possible. They may be able to offer alternative repayment options or provide guidance to help you manage your situation effectively.

Can I use a good credit loan to consolidate my debts?

Yes, a good credit loan can be an effective tool for debt consolidation. It allows you to combine multiple debts into a single loan with a potentially lower interest rate, making it easier to manage your repayments.

Can I get a loan if I'm self-employed?

Yes, self-employed individuals can apply for loans. Lenders typically assess self-employed applicants based on their income, financial stability, and credit history.

What happens if my loan application is declined?

If your loan application is declined, it's essential not to apply for multiple loans simultaneously. This can negatively impact your credit score. Take the time to understand why your application was declined and work on improving your creditworthiness before reapplying.

How often should I check my credit score?

It's a good practice to check your credit score regularly to ensure accuracy and monitor any changes. Aim to check your credit score at least once a year or before applying for significant credit.

Can I get a loan if I'm under 18 years old?

No, the legal age to enter into a financial contract, including loans, in the UK is 18. If you're under 18, it's essential to explore other financial options appropriate for your age group.

Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.

Important Information.

All of the information in this guide is correct at the time of writing.

If you complete a loan search application on the Choose Wisely website, the rates shown may vary based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 13.9%APR to a maximum of 1721%APR Representative and loan repayment periods range from 3 to 60 months.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
You can access your credit report for free from Credit Karma, Clearscore or Experian.