What does Subject to Status mean?

frequently-asked-questions

What does Subject to Status mean?

Subject to status when it comes to unsecured loans or other loan products available, means that your approval is based on the basis of credit rating and income checks.

If these checks for a loan come back positively, showing that you are able to afford to take out a loan and are likely to make repayments, your loan application is likely to be successful.

To provide further clarity as to what is meant by ‘subject to status’, we have put together the following guide to help you in the loan application process.

What is subject to status?

Subject to status is eligibility criteria that lenders use to determine who to accept or refuse a loan to. Each lender will gather information on applicants and then use this data against their scorecard. Those who meet the minimum eligibility criteria are accepted, and those who do not will have their application declined.

What is a credit score card?

Subject to status for a loan is linked to the lender’s credit score card. This is common within the lending industry and each direct lender has one.

The credit score card combines customer data, predictive modeling, and previous behaviour, as well as other data analysis. No two scorecards are completely the same, meaning information can be weighted differently amongst lenders.

What information is on a credit score card?

Typically, lenders share much of the same general information. This includes:

  • Your income
  • Your age
  • Your credit history

Your income

When it comes to credit score cards, your income will play an important role. To ensure you are not exaggerating about the level of income you are receiving, lenders will often ask for proof of income, such as your payslips. Alternatively, the lender may cross-reference income against your credit file.

Your age

Your age is vitally important in subject to status criteria. In the UK, you will need to be at least 18 years of age to be accepted for any line of credit. Whilst there are some eligibility criteria lenders will be softer on with applicants, this does not apply with age requirements.

Credit history

Lenders will also be assessing your credit history in order to see how well you have previously handled credit and repayments. If you have a bad credit score, you will find that it will be harder to get approved for loans or other types of credit.

In terms of what constitutes a good or bad credit score, 999 is the best score an applicant can possibly have, whilst the worst is 0 (based on the credit reference agency Experian’s rating). The rating system can differ amongst agencies.

The key aspects lenders will be assessing in your credit file is your repayment history to make sure you have successfully paid off credit, as well as how you have dealt with existing credit.