Does my credit score change what a loan costs?

2 min read

Better credit = lower rateLess risk margin

Markers raise costOr limit access

Both files countCompany + director

ImprovableOver time

Why credit standing sets the price

The rate is largely a risk margin, and your credit profile is one of the biggest inputs to that risk. A strong business credit score and a clean director profile tell the lender a default is less likely, so the margin — and the rate — come down. Adverse markers do the reverse, raising the price or, in more serious cases, restricting which lenders will offer at all. See the business credit score guide.

Both files usually matter

For a limited company, lenders often look at both the company's credit profile and the directors' personal credit, particularly where a personal guarantee is involved. A gap on either side can affect the cost. Keeping both in good order — the company paying suppliers and finance on time, the director's personal accounts clean — supports the keenest pricing. See does poor credit mean higher interest.

Improving what you pay

Credit standing is not fixed. Paying every commitment on time, keeping facilities in order, filing full accounts, and letting old markers age all strengthen the profile and, over time, lower the rate you are offered. If your credit is currently weak, you can still borrow — expect a higher rate, and use other strengths like security or a modest amount to offset it. See improving creditworthiness.

Check what your current profile supports by getting a firm quote — apply to Credicorp — and compare it on total cost.

Frequently asked questions

Can I still get a loan with a poor credit score?

Often yes, but usually at a higher rate, because the lender prices in the extra risk. You can improve your chances and the cost by offering security, borrowing a modest amount over a shorter term, and strengthening other parts of the application. Poor credit narrows the options and raises the price rather than closing the door outright for most businesses.

How quickly can improving my credit lower my rate?

It is gradual rather than instant — lenders weight recent behaviour, so a stretch of on-time payments, full filings and orderly facilities builds a stronger profile over months, and old markers fade with time. There is no overnight fix, but consistent good conduct steadily improves the rate you are offered. Start before you need to borrow, not when the application is already in.