How to Get a Credit Line in The UK

Ever wondered what it takes to get a personal credit line in the UK? Learn more about the important steps you can take to achieve financial flexibility.
How to Get a Credit Line in The UK

Updated: January 2022

Using debt effectively and obtaining a credit line in the UK can be a lifesaver. You can use it to cover unforeseen expenses or keep the lights on while you wait for your paycheck. A line of credit is essentially a flexible loan. It’s money that you can access when you need it and allows you to repay immediately or over time. 

Imagine that you’re a Deliveroo rider in London. Your monthly income varies based on factors such as tips, number of deliveries and other external forces. In addition to changes in income, you’ll  often have to wait a few days between deliveries and getting paid. You have  two options: pay your bills late and risk incurring a late fee or use debt to cover expenses while waiting for your next paycheck.  Choosing to use a credit line to cover expenses means you can pay your debt off as soon as you get paid and avoid unnecessary interest payments. Over time you can use a personal line of credit to build your way to financial freedom.

What is a Revolving Credit Line?

A revolving credit line is a type of loan that gives you immediate access to cash which you can pay back over time. It’s also known as a bank line or revolver. Your credit limit is set in advance, so you can take money out of it at any time. The line of credit is replenished (up to the agreed amount) as it is paid back.  

Credit cards are the most common example of revolving credit. Even if you make a credit card payment mid-month, you can almost immediately re-access the line of credit that you have paid back.

Revolving credit facilities can be a huge problem for people who fail to pay off their balances in a timely manner. These types of loans typically are lucrative for lenders but very expensive for borrowers. Make sure you are able to pay back any loan you take out, and ideally pay it in full every month. 

Can You Get a Personal Revolving Credit Line in the UK?

Yes, it is possible to get a personal revolving credit line (also called an open line of credit or open-end credit line) in the UK. These lines of credit are typically used as a safety net when unexpected expenses pop up.

Make sure you do your due diligence when looking for a loan. Borrow from a reputable lender that’s regulated and read the fine print carefully. You can check which firms are regulated by the FCA to make sure you are engaging with a regulated broker or lender.

Can You Get a Personal Revolving Credit Facility in the UK with Bad Credit?

To get a personal revolving line of credit in the UK, you need to pass background and affordability checks. A bad credit history will affect your personal revolving credit line application. 

Here are some factors to think about when applying for a revolving credit line:

  • Age 
  • Applicants must be 18 or over
  • UK residency 
  • You’ll need a permanent UK address and will need to prove you live there
  • Proof of employment and income
  • You’ll need to be able to prove where you work and how much you earn. 
  • UK bank account 
  • Affordability, credit and fraud checks
  • Each lender has different checks they run to make sure you are who you say you are and that you’ll be able to pay them back any money you borrow. 
  •  Your credit report
  • Your credit score is an assessment of how risky you are to lend to. There is no minimum credit score you need to apply for a line of credit, each lender is different. However, you are likely to get better rates with a higher credit score. 
  • Current income
  • Some lenders will look at your income as part of your credit assessment. Generally a higher regular income will get you a higher credit limit. 

We Make Credit Building Available to the Hardest Working People

Helping you build your credit score to get a better line of credit is our speciality. Pave  is much more than a personal finance app. We care about the entirety of your financial strength and will help you take control of your finances—providing you with actionable tips to get access to fair financial options.  

Our mission at Pave is to eliminate financial inequality and give people a fair chance to go as far as they can.We do this by offering the proper path to good credit. Whether your goal is to build your credit to purchase your first home or to get yourself out of debt, our flexible, no-interest financing is here when you need it most. 

Check out our Guide to Building Credit the Right Way to learn more about credit building.