Definition · Glossary
Affordability check
Personal LoansBudgeting & Money Management
In plain English
An affordability check is a lender's assessment of whether you appear able to manage repayments without getting into financial difficulty. It considers your income, outgoings and existing debts.
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Example
Before offering you a loan, the lender carries out an affordability check using information from your application and credit file.
Don't get caught out
Common misunderstandings
- An affordability check is not the same as a credit check — it specifically looks at whether you can manage the repayments.