Bad Credit Loans

If you have a bad credit rating, there are loans available whether you are a tenant or a homeowner. Choose from unsecured and secured, guarantor

If you have a bad credit rating, there are loans available whether you are a tenant or a homeowner. Choose from unsecured and secured, guarantor or non-guarantor.

What is a bad credit loan?

Bad credit loans are for people who have a poor credit rating either because of previous money problems or because they have only a limited credit history. Credit problems could include:

  • Arrears, Defaults & CCJs
  • Part-time employed & Self-employed
  • Discharged from Bankruptcy, completed IVA or other debt management plan
  • No accounts or No proof of income
  • Limited or no borrowing history


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In addition to the normal reasons for credit (e.g. debt consolidation, car purchase) people often use a bad credit loan to improve their credit score by demonstrating they can manage debt successfully.

How to get a loan with bad credit

Start by considering the amount you can afford to repay each month so it comfortably fits within your budget. This will help you define the amount you can borrow. Look at the different types of loans available to ensure you choose the one that meets your circumstances and needs.

It may also be worthwhile looking to see how you can quickly improve your credit rating as this will improve the deals you can get.

Consider what you need

1: Consider what you need

The amount you need to borrow, the amount you can afford to repay each month and what you can offer a lender in terms of security or otherwise.

Compare loan options

2: Compare Your Loan Options

With your needs in mind weigh up the pros and cons of each product. Choose the one you are happiest with.

Complete the Application

3: Complete Your Application

Visit the product page and follow the application process outlined.

Loan Paid Out

4: Get Your Money

Depending on which product you choose your loan could be paid out instantly or after a few days/weeks if a guarantor or security is required.

Types of bad credit loans

Millions of people in the UK have a credit problem of one form or another. You are not alone. We have a range of loan options that could help:

Bad credit unsecured personal loans – you can borrow money from a specialist lender but there is no need to provide anything you own as security, nor provide a guarantor.

Guarantor loans – where another person will step in and make your repayments if you are unable to.

Secured loans – where you do provide an asset as security to the lender. These include homeowner loans, remortgages and equity release (where the house you own is the asset) or logbook loans (where your vehicle is the asset). These assets are at risk if you miss your repayments.

Small cash lending for the short term such as doorstep loans, instalment loans or perhaps payday loans.

Personal Loans with Bad Credit

Bad Credit Personal Loans

We work with a wide range of specialist bad credit personal loan lenders.

Guarantor Loans

Loans With A Guarantor

A guarantor could help you get an unsecured loan, despite having bad credit.

Small Cash Loans

Small Cash Loans

For loans of up to £2000 repayable over 1 to 24 months consider an instalment, doorstep or payday loan.

Loans secured by a propertyLoans secured by a vehicle

Loans Secured by an Asset

Provding your car or house as security will not only increase your chances of getting a loan, but also allow you to borrow more at a lower rate.

How much will a Bad Credit Loan cost?

Having a bad credit rating puts a lender on alert. They compensate for the extra risk they see by charging a higher interest rate. You’ll also notice that if you are prepared to offer an asset as security or provide a guarantor that you might be able to reduce that interest rate. Effectively you are opting to take on some/all of the lender’s risk.

Things to consider when borrowing

If you are thinking of applying for finance, even though you have an adverse rating, you should consider:

Interest rates: typically, you’ll pay a higher interest rate if you have a poor credit score

Unsecured vs secured: to get a better interest rate you could provide security, but are you really prepared to lose your asset if you default on your debt repayments?

Guarantees: getting someone to support your application should help you get a better rate for an unsecured loan.

Your credit score: if you do borrow more and make repayments on time and in full then you can improve your credit rating. If you fail to then you will make it worse.

Borrowing term: as with any form of debt the longer you borrow for the higher the total interest on that debt will be. This is made even more noticeable by the higher interest rate you will be paying.

Loan amount: only borrow what you really need.

Trends in bad credit loan applications

Looking at the applications we get for this type of loan there are some obvious trends:

Debt consolidation is the most common purpose – to make monthly repayments on existing debt more manageable.

Perhaps because applicants have been rejected over and over again, they quite reasonably want quick lending decisions. And a fast payout is also considered very beneficial.

People on lower incomes tend to have a poorer credit rating – with a higher proportion of income required for meeting life’s basic expenses and with greater job and income insecurity this is unfortunately the case.

It may not surprise you, but younger people tend to have a worse credit score perhaps linked to lower incomes and their spending habits.

How to Improve Your Credit Rating

However, there are potentially many other factors. We’ve written a detailed guide to how to manage your credit file – there’s more you can do than you might initially think.