What happens when I check my eligibility?

When you check your loan options through us, we run a soft credit check. This doesn’t affect your credit score in any way and is not recorded on your credit file.

When you check your eligibility, we try to show you as much information as possible after just a soft search, including real rates and your chance of approval.

Not sure what we mean by real rates? Check out our guide, What are real rates?

If you are eligible for finance, you’ll then see your loan options. If you decide to apply for a loan, your chosen lender may then run a hard credit check. This type of credit check is recorded on your credit file.

Can I get a homeowner loan with bad credit?

Yes, it is possible to get a homeowner loan with bad credit. This is because lenders secure the loan will against your home, adding an extra layer of security for the lender.

With a homeowner loan, you can borrow from £10,000 to £500,000+ and spread the cost over 1 to 30 years.

Bad credit homeowner loan considerations

That said, you should think carefully before securing finance against your home. If you are unable to repay your loan, as a last resort your lender could repossess your property to recover their funds. To be eligible for a homeowner loan, you’ll need to be a homeowner with equity in your home.

Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk.

Second-charge mortgages 14.26% APRC Representative (variable). Representative example (if you choose to add fees to the loan): assumed borrowing of £25,000 over 7 years, plus a broker fee of £2,850 and lender fee of £367.50 would result in monthly repayments of £509.96, the borrowing rate is 12.78%, the APRC is 14.26% (variable), total charge for credit would be £14,619.14 and the total amount payable would be £42,836.64. Aro is a credit broker and not a lender. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

If you would like to learn about what gives you a bad credit score, check out our blogs, guides and FAQs.

Can I get a loan with bad credit?

This very much depends on your individual circumstances. When it comes to personal loans, lenders will look at your credit score to decide whether to offer you a loan and determine your interest rate. Generally if you have bad credit, you will be charged a higher interest rate.

If a personal loan isn’t an option for you, you may still be able to consider:

Although your credit history does play a big part in your eligibility for finance, there are other factors that a lender will consider, such as your income, expenses, the size of the loan you are looking for, how much debt you already have and your homeowner status.

Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk

36.8% APR Representative (fixed)

Representative example: 36.8% APR Representative based on a loan of £12,500 repayable over 48 months at an interest rate of 36.8% pa (fixed). Monthly repayment of £500.83. Total amount repayable is £24,039.67.

What is Open Banking and is it safe?

Open Banking is a safe and secure way for us to access the data needed to find you more products from lenders. It allows Aro and lenders to see your digital bank statements and assess how much you could borrow based on real time affordability.

Originally set up by Competition and Markets Authority on behalf of the UK government, it is regulated by the Financial Conduct Authority (FCA). Many of the UK’s biggest banks are enrolled on the Open Banking Directory.

Learning more about what Open Banking is

To find out more about Open Banking and if you would benefit from using it, visit the official website.

Who do you share my data with?

We share your data with Consents Online Limited who is an FCA regulated company, of which we are an FCA authorised agent. For more information about how we use your data, visit our privacy policy.


We know that finance can be pretty confusing. That’s why we want to give you the clearest, jargon-free guidance we can so you have the power to make the right decisions about borrowing. To help you with this, we’ve gathered all of our most asked questions and answered them in detail for you.   

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Bad Credit FAQs

Car Finance FAQs

Credit Card FAQs

Debt Consolidation FAQs

General FAQs

Mortgages FAQs

Personal Loan FAQs

Secured Loan FAQs