There is no minimum credit score for a secured loan. Lenders never see the number that Experian, Equifax or TransUnion show you; they read the events behind it, such as defaults, CCJs and missed payments, and their age. A secured loan, also called a homeowner loan or second charge mortgage, is regularly considered for homeowners whose Experian score sits below 720, the top of its poor band, provided there is enough equity and the mortgage is up to date.
- No secured loan lender publishes a minimum credit score, because each lender runs its own scorecard and criteria.
- Experian scores out of 999, Equifax out of 1,000 and TransUnion out of 710, so the same file gives three different numbers.
- Lenders look at the age, size and number of defaults and CCJs, not the score those events produce.
- Equity in your home and a clean mortgage payment history matter more to secured lenders than a perfect file.
- The loan is secured on your home, which may be repossessed if you do not keep up the repayments.
Is there a minimum credit score for a secured loan?
No. The score you see in a credit app is a product created by the credit reference agency to summarise your file for you, the consumer. It is not sent to lenders, and lenders do not set a threshold against it. When a secured loan lender assesses you, it pulls the raw data from one or more agencies, runs that data through its own internal scorecard, and then applies its published lending criteria, which are written in terms of events: how many defaults, how old, how much, whether they are satisfied. Two lenders can read the same file and reach opposite decisions.
This is why "what score do I need?" has no honest numeric answer. What can be said is that secured loan lenders as a group are more tolerant of a damaged file than personal loan or credit card lenders, because they hold a charge over your property. Many will consider homeowners with a score the agencies would label "poor" or even "very poor", as long as the equity and affordability stack up and the adverse events are not recent or still active.
The reverse is also true. A high score does not mean an automatic yes. A homeowner with an excellent score but little equity, or no room in the budget for another payment, will struggle regardless. Our secured loans with bad credit page walks through which situations are commonly considered and which are usually not.
What do the Experian, Equifax and TransUnion score bands mean?
The three main UK agencies each use a different scale, so it is worth knowing where your number sits on each. The bands below are the ones the agencies themselves publish.
| Band | Experian (0 to 999) | Equifax (0 to 1,000) | TransUnion (0 to 710) |
|---|---|---|---|
| Excellent | 961 to 999 | 811 to 1,000 | 628 to 710 |
| Good | 881 to 960 | 671 to 810 | 604 to 627 |
| Fair | 721 to 880 | 531 to 670 | 566 to 603 |
| Poor | 561 to 720 | 439 to 530 | 551 to 565 |
| Very poor | 0 to 560 | 0 to 438 | 0 to 550 |
The bands are useful as a rough health check, nothing more. A score in the "fair" band on one agency can sit in "poor" on another simply because the agencies weigh things differently, and because not every lender reports to all three. Your statutory report from each agency is free and worth reading.
What actually moves a secured loan decision is what the score is made of. A "poor" score caused by a thin file and a couple of late payments two years ago is a very different case from a "poor" score caused by a default registered last month. The first is routinely considered; the second usually needs to age before most lenders will look at it. A broker reviewing your file reads the entries, not the headline number, and checking your options will not affect your credit score.
What do secured loan lenders actually look at?
Secured lenders read your credit file as a timeline of events. These carry the most weight.
- Defaults: how many, how large, how long ago, and whether they have been settled. Many lenders ignore defaults older than 24 or 36 months, and small telecoms or utility defaults are commonly disregarded altogether. See secured loans with defaults.
- County Court Judgments: the date registered, the amount, and whether it is satisfied. A satisfied CCJ over a year old is considered by many lenders; an unsatisfied one from the last few months is much harder. See secured loans with a CCJ.
- Missed payments: lenders typically count missed payments in the last 12 and 24 months on unsecured credit, with a small number tolerated.
- Mortgage conduct: arrears on your existing mortgage are taken far more seriously than a late card payment, because they show difficulty with a secured commitment.
- Insolvency: a current IVA or bankruptcy usually rules out a new secured loan; a discharged one is considered by some lenders after a set period.
Alongside the file, the lender looks at your loan-to-value once the new loan is added, your income and outgoings, and whether the new payment fits. Lenders with a wider appetite for adverse credit typically cap combined borrowing at a lower percentage of your property's value, so heavy adverse history and tight equity together can close the door where either alone would not.
What matters more than the number on your credit report?
Three things. The first is equity. The lender's protection is the gap between what your home is worth and what is already secured on it. More equity means a lower combined loan-to-value, and a lower loan-to-value is the single thing that most reliably opens up lenders and improves pricing, whatever your score says.
The second is your mortgage payment history. A secured lender wants to see that you have paid your existing mortgage on time, usually for at least the last 12 months. That record says more about how you will treat a second secured payment than any unsecured slip-up. If you are behind on the mortgage now, that needs fixing before anything else; our secured loans with mortgage arrears page explains the position.
The third is affordability. Every regulated lender must check that the new payment fits your budget after your mortgage, bills and living costs, and for a consolidation loan they will usually check that the debts being cleared are actually cleared, often by paying them directly on completion. If you are considering a secured loan because you cannot keep up with what you owe now, please talk to MoneyHelper, StepChange or Citizens Advice first. Their advice is free and impartial, and it is the honest starting point when the problem is the total rather than the price. Remember too that a secured loan puts your home at risk: it may be repossessed if you do not keep up the repayments, whatever your score.
A secured loan is unlikely to be the right move if your credit problems are still live: an unsatisfied CCJ from this year, a default registered in the last few months, current mortgage arrears or an active IVA will close off most lenders and leave you with expensive options at best. It is also the wrong tool if your score is fine but your equity is thin, since the lender's decision leans on the equity more than the file. And if the honest reason for borrowing is that your payments have already become unmanageable, free advice from StepChange, MoneyHelper or Citizens Advice should come before any new secured borrowing.
Worried about debt? Get free advice first
If you're struggling, it's worth speaking to a free, impartial debt advice service before you borrow more. They don't sell anything and won't judge your situation.
- MoneyHelper: Free, impartial debt advice backed by government
- StepChange: The UK's largest free debt charity
- Citizens Advice: Free, confidential advice on debt and money
Checking your options with Equiclear will not affect your credit score.
Frequently asked questions
Can I get a secured loan with a very poor credit score?
Often, yes. A very poor score usually reflects specific events such as defaults or CCJs, and many secured loan lenders consider those if they are more than a year or two old, your mortgage is paid on time and you have enough equity. Expect a higher rate than a clean file would get.
Which credit reference agency do secured loan lenders use?
It varies. Some lenders use one agency, some use two or three, and brokers often check a multi-agency report so nothing is missed. Because each agency scores differently and holds slightly different data, it is worth reviewing all three of your reports before applying.
Does a secured loan lender see my credit score?
No. The lender sees the data on your file, such as accounts, balances, payment history, defaults, CCJs and searches, and scores it with its own model. The consumer score shown in Experian, Equifax or TransUnion apps is not part of that assessment.
Will checking secured loan options lower my credit score?
Checking your options will not affect your credit score. A broker can assess which lenders are likely to consider you using your details and, at most, a soft search that other lenders cannot see. Only a full application to a lender creates a hard search on your file.
How long do defaults and CCJs stay on my credit file?
Six years from the date they were registered, whether or not they are settled. Lenders care about age, so a default from four years ago is treated very differently from one registered last month, and a satisfied CCJ is looked on more favourably than an unsatisfied one.