How it works
The information you provide on your application is the first thing we consider, so please make sure it is as complete and accurate as possible. If any information is unclear or incomplete, we may need to ask you for clarification, which can slow the process. If our checks suggest you have deliberately failed to disclose relevant facts, this is likely to affect our decision.
Every loan is reviewed by a member of our staff – a person, not a machine – and your individual circumstances are always taken into account.
Step 1: Affordability
Affordability means being able to meet your household expenses, make your loan repayments, and still have something left over for savings or emergencies.
Alongside the income and expenditure you record on our application form, we will ask you to provide three months’ bank statements or an Open Banking link so we can confirm your income and outgoings. Please make sure you supply information for all your active accounts.
As a responsible lender, we cannot offer a loan if we believe you will struggle to repay it.
Step 2: Credit Check
We may check your credit report to see how you are managing any existing debt.
We will look at what other credit commitments you have—such as credit cards, loans, home credit, or finance agreements—and whether you are repaying these as expected. Please ensure you give an accurate figure for your other loan repayments on your application.
Missed payments, defaults, debt collectors, or CCJs may affect our decision. However, we aim to help where we can. To us, you are always a person, not just a credit score.
We will not lend to you if doing so would make your financial situation worse or if your credit report suggests a high likelihood of default.
Step 3: Checking Your Individual Circumstances
After assessing affordability and your credit report, we consider any other information that may help us make a fair decision. This includes the reason you need the loan.
If you are already a member, we will look at your history with us—for example, whether you have had a loan before and if it was repaid on time with no missed payments. We will also check whether you are saving with us, as saving is an important part of being a Bedford Credit Union member. If your loan is approved, you will be encouraged to save while making your loan repayments.
We may also need additional documents to verify your identity or confirm your income. We may contact you with further questions before making a final decision.
After the Decision
Once we have completed all three steps, we will contact you with our decision.
We may offer you a different loan amount or repayment period to ensure it remains affordable.
If your application is successful, you will be asked to sign a legally binding loan agreement.
If your application is not successful, we will explain the reason and provide further information where relevant.
If you feel that any of the above may affect your ability to get a loan, please feel free to contact us for a chat before applying.
Top‑up Loans
Top‑up loans are available once one third of the total amount originally borrowed has been repaid. Eligibility will still depend on affordability checks, your credit report, and your overall circumstances at the time of the request.
