23 September 2025 | Written by Mercantile Trust
Does a Bridging Loan Affect My Credit Score?
If you’re thinking about taking out a bridging loan, you might be wondering whether it will have any impact on your credit score. The simple answer is yes - just like other forms of borrowing, a bridging loan can affect your credit file. The good news is that this impact can be positive if the loan is managed well.
Let’s break it down.
What Is a Credit Score?
Your credit score is a number that helps lenders understand how risky it might be to lend you money. In other words, it’s a snapshot of your overall credit health.
Credit scores are created using data from one of the three main UK credit reference agencies: Experian, TransUnion, or Equifax. Scoring models look at your credit report and try to predict how likely you are to miss a payment in the next 24 months.
Most credit scores in the UK range from 300 to 850, with higher scores indicating lower risk. A higher score can make it easier to get approved for loans and other credit, often at better interest rates.
How a Bridging Loan Can Affect Your Credit Score
Taking out a bridging loan will usually involve a credit check, which creates a small, temporary dip in your score (known as a “hard search”). This is normal and typically only lasts for a few months.
Once the loan is in place, the main impact on your credit score will come from how you manage it:
- Positive impact: Making all of your monthly payments on time shows lenders that you are a responsible borrower, which can improve your credit profile over time.
- Negative impact: Missing payments, paying late, or defaulting on the loan can seriously harm your credit score, making it harder to get credit in the future.
What If I Can’t Make a Payment?
If you miss a bridging loan payment, an arrears fee may be applied, and we are required to notify credit reference agencies. This can negatively affect your credit score.
The key is to contact us as soon as you think you might have difficulty making a payment. The earlier you reach out, the more solutions we can offer to help get you back on track.
Read more about how we can support you if you’re struggling to make payments
Final Thoughts
A bridging loan doesn’t have to hurt your credit score - if anything, it can help build a positive credit history if used responsibly. Make sure you keep up with your payments, and don’t hesitate to talk to us if you face financial difficulties.
By staying proactive, a bridging loan can be a helpful short-term funding solution that supports both your project and your credit profile.
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Bridging loans are a short-term financing option, designed to "bridge" the gap between a financial need whilst long-term finance is being arranged.
