Will applying for a loan with Lendwise affect my credit score?
When you initially provide your information to Lendwise, we conduct a “Quotation Search”. This will not impact your credit score. This search takes a “snapshot” of your credit history without leaving any footprints visible to other lenders when they look at your credit report. We then use this information to evaluate if we are able to offer you a loan that can be funded on the Lendwise platform. If we can, we will send you a loan proposal for your review and acceptance. Once you accept to proceed with the loan proposal, Lendwise will carry out a full search with a view to posting the loan on the Lendwise platform so that it can be funded. Please note: a “full search” will leave a visible footprint on your credit report, as would be the case with any provider.
What if I have defaults and/or arrears on my credit report?
One of the criteria to be eligible for a Lendwise Loan is to possess a clean credit record, so there should be no arrears, defaults, CCJs, etc. We see the existence of instances such as arrears and defaults as an inability to service one’s debt properly by a borrower, which is not great if you are asking to borrow more money! Although such an instance might have been a once-off incident in the past, as a responsible lender we have a duty towards the platform lenders to present them with high quality loans to fund as well as a duty of care to borrowers by not creating further indebtedness that could be detrimental to them.
Are tuition fees and study related/maintenance expenses covered by a Lendwise Loan?
Lendwise Loans are primarily for tuition fees, where we disburse the money directly to the university. However, in some cases we can include a small amount for maintenance in the loan which would be disbursed to the student when they start their course. If eligible for the government’s post-graduate loan also, it is our understanding that this is disbursed straight into the student’s bank account to be used for either tuition, maintenance, or other study related expenses.
Can I apply for a Lendwise Loan if I’m applying for a government loan and/or a, in receipt of scholarship/other funds.
The simple answer is yes! We lend to students with scholarships and/or government post-graduate loans. Lendwise can also lend to those with existing outstanding undergraduate student loans. Furthermore morally, and as a responsible lending platform, Lendwise does take into consideration the affordability of repayments for perspective students with outstanding loans.
Can I apply for a Lendwise Loan if I am not from the UK?
Our borrowers are primarily UK residents studying for a postgraduate degree or a professional qualification who require a loan to fund their studies. We also welcome applications from other European or International candidates with an offer from a UK university or other certain European universities and/or Business Schools. If you are not a UK resident you will need to provide us with your own local credit report which is dated in the last 30 days after submitting your application online. Please note your credit report should be the official document in PDF form and should contain your Credit Score as well as your account records and payment history. Please also note that we require your Credit Report to be in English – if the report is not provided in English, you will need to have this translated in English and provide the translator’s contact details.
How does Lendwise decide whether to process a loan application to the funding stage or not?
The data in your application is used in a sophisticated algorithm to produce your score which reflects our expectation of your repayment ability and affordability of the loan; depending on where the score lies, your application will be processed for funding, rejected or sent for further review by a senior underwriter.
What are the main factors I will be assessed against?
We believe in the potential created by education, therefore we place considerable emphasis on education related variables to evaluate your application. We compare this information against the latest statistical data to derive conclusions on employability and expected salary levels that reasonably impact on your ability to repay the loan. Such variables include:
- University/Institution standing
- Course standing
- Course duration
- Study mode
- Undergraduate degree university
At the same time, we recognize the importance of other, “hard” metrics to reach a more balanced, realistic score such as:
- Credit score
- Work experience
- Salary
- Loan amount
- Own contribution to studies
- Other sources of income
Will I be disqualified from applying for a loan if I have a low credit score?
No, a low credit score does not disqualify you from applying for a loan. A good-excellent credit score on the other hand, enhances your overall Lendwise score thus increasing your probabilities of being eligible for funding. However, we recognize that in many cases the low credit score will be associated with the absence of financial commitments as a result of your young age. We will treat such cases with the utmost care and diligence by having a senior member of staff in the underwriting team thoroughly examining them before reaching a final decision.
Do I need a guarantor or co-signer before I am offered a Lendwise loan?
No, you do not require a guarantor or co-signer in order to be offered a loan with Lendwise. Remember, our student-friendly loans are tailored to your personal circumstances and based on a holistic representation of your overall profile beyond just your financial profile.
How will Lendwise assess my application given I do not have any income from employment yet?
Our evaluation process caters for this possibility and resorts to assess your repayment ability and affordability based on statistical data produced by university alumni associations and other employment related agencies. This data associates employability and starting salary levels to the educational institution and course of attendance thus allowing us to replicate your expected salary levels following graduation.
Will my age affect the assessment?
The age factor is assessed in our model albeit not with a high weight. You must be at least 18 years old to be eligible to apply for a loan from our platform. As a post graduate education and professional qualification loans platform we expect most of our borrowers to be in the range of 25-35 which by reference to employability and income levels appears to be the optimum, however no application will be rejected on the merit of age provided it satisfies the minimum of 18 years.
What will happen if my application score is borderline?
If your application produces a lower or upper level borderline score we will not provide you with an immediate response. The application will be reviewed further by a senior underwriter who will exercise his/her professional judgement to decide on either processing the application further on not.
Will my loan application be successful?
Your loan application will be assessed by Lendwise once it is completed and submitted. We aim to provide you with a loan proposal that will be suitable for your education endeavours and within your projected loan repayment capabilities whilst being attractive to Lenders on a risk adjusted basis to provide loan offers. Sometimes it is not possible to match those objectives and rather than offering you a high burden debt that may potentially lead you to financial difficulties we will not proceed with a loan proposal. If this happens to be the case, we are truly sorry and hope that you are able to find alternative means to pursue your aspirations. Should you feel that your circumstances may have changed at a future date, we would encourage you to apply to Lendwise again.
*Please note that the terms “commitment fee”, “administration fee” and “origination fee” are often used interchangeably. This means that there might be instances where these terms are used to refer to the same concept. It’s important to understand that this phrasing does not indicate a preference for either term, but rather highlights the potential for their interchangeable use in various contexts.
