Your best interests are at the heart of our work.

Everything we do for you is shaped by our human-first approach. From how we interact daily to our lending decisions. We offer fair, accessible savings and loans to meet your needs.

One thing we need to be is responsible

Assessing creditworthiness allows us to provide loans that are both beneficial and manageable for our members.

Creditworthiness refers to how much an individual can be trusted to pay their debts on time and in full. It’s checked by looking at an individual’s credit score, income and expenses, and valued by how well you’ve handled credit and debt in the past.

Let’s look into the importance of assessing creditworthiness and how it aligns with our goal of looking after our members.

Why assessing creditworthiness matters

Assessing creditworthiness enables us to provide responsible lending that benefits you. 

Credit helps our members get where they want to be. It’s vital for credit card and job applications, mortgages and rental agreements. Higher creditworthiness tends to lead to better loan terms, whereas lower creditworthiness could mean higher interest rates or extra fees. 

Assessing creditworthiness prevents our members from taking on loans they may struggle to repay, avoiding further financial strain. 

By looking at certain factors, we’re able to offer affordable and manageable loans that support your financial wellbeing. 

Beacon’s unique approach to creditworthiness

Our regulators require us to assess creditworthiness, using the same data as other financial organisations. 

However, unlike banks, we take a more human approach. They see data as black and white and only want borrowers with perfect credit scores. Things sometimes get in the way. Life happens, and our members shouldn’t be penalised because of this.  

Our number one goal is to make sure we’re not putting any financial strain on you. While we look at past financial difficulties, we don’t use this to dictate whether an individual receives or is denied a loan. We’ll assess whether a loan can sustainably work for them. 

This compassionate approach allows us to make decisions that support all our members. Your financial stability and mental wellbeing are at the top of our priority list. 

Understanding member’s financial situations 

We listen carefully to each member’s financial story. Creating plans that work today and stretch well into their futures. 

There are multiple factors we consider when assessing creditworthiness.  

We’ll look at any previous missed payments and the total amount of debt a person owes, which gives us an idea of how likely an individual is to be able to make loan repayments.  

We also consider an individual’s gambling habits and reliance on buy now, pay later schemes. While these aren’t necessarily a problem, we carefully assess if this may be contributing to financial instability. 

Our goal through creditworthiness assessments is to support our members responsibly. Offering loans only when it contributes to their overall wellbeing and when we know we won’t be causing any financial strain. 

Examining these details, we gain a deeper understand our members’ financial health, guiding us to make ethical lending choices. 

Affordability and responsible lending 

Our goal is to provide financial support to members that is responsible and manageable.

All our loans feature transparent terms and zero hidden fees or early repayment charges. You’ll always know what to expect from the get-go. Financial difficulties can be incredibly stressful and damaging to an individual’s mental health. We approach things compassionately and thoughtfully to find the right plan that works for you.

We’ll never look at whether someone simply qualifies for a loan or not. Instead, we see how a loan works for them, which involves assessing how repayments fit into their budget, to make sure everything is as sustainable as possible.

The difficult decisions: saying no for the right reason

There are, however, instances where we must turn down a member’s application for a loan. 

When we say no, it’s because we believe that approving a loan could cause financial strain and further difficulties down the line. We aim to make borrowing affordable and manageable. Providing loans that do the opposite goes against our promise. 

If we’re unable to offer a loan, we work with our members to support them in other ways, which could include offering advice on how to manage existing debts. We will always look to provide our members with information they may need to better support their financial wellbeing. 

Want to get involved?

Assessing creditworthiness is a vital part of our mission to put our members before all else and offer them a reliable, safe service. 

This assessment allows us to look into our member’s credit history and create bespoke repayment plans that work for them. With clear terms and honest rates, we’re here to make borrowing straightforward.  

Want to learn more about our accessible loans and how we can help you? Get in touch today.