Warning: Late repayment can cause you serious money problems. For help visit moneyhelper.org.uk/en. We are a broker and not a lender. We don’t make lending decisions.

Loans for Bad Credit

Loans for bad credit are designed for individuals with poor or limited credit histories. These loans provide access to funds for emergencies or essential expenses, even if your credit score makes traditional borrowing more challenging.

How much would you like to borrow?
Representative 79.9% APR Rates from 12.9% APR to 1721% APR. The minimum Loan Term is 1 month. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%.

Borrowers with bad credit can still find suitable options, as many lenders focus on affordability and current financial circumstances rather than relying solely on credit scores.

What Are Loans for Bad Credit?

These loans cater to individuals whose credit history might include missed payments, defaults, or limited borrowing experience. Lenders assess your ability to repay the loan based on income and expenses, providing an opportunity to rebuild your credit with timely repayments.

How Do They Work?

  1. Application: You provide details about your financial situation, including income, expenses, and employment status.
  2. Assessment: Lenders evaluate affordability to determine eligibility, with some offering soft searches that do not impact your credit score.
  3. Approval: Upon approval, funds are transferred directly to your bank account, often on the same day.
  4. Repayment: Loans are typically repaid in instalments, making them more manageable.

Benefits of Loans for Bad Credit

Accessible Borrowing

Designed for individuals who may struggle to qualify for traditional loans.

Credit Building Opportunity

Timely repayments can improve your credit score, helping you access better financial products in the future.

Flexible Loan Options

Loan amounts typically range from £100 to £5,000, with repayment terms tailored to your budget.

Quick Approval

Many lenders offer fast approval processes, with same-day funding for eligible applicants.

Things to Consider

Higher Interest Rates

Loans for bad credit often come with higher interest rates due to the perceived risk to lenders. Always review the total repayment amount.

Responsible Borrowing

Ensure you borrow only what you need and can afford to repay to avoid further financial difficulties.

Alternatives to Loans for Bad Credit

If you are unsure about borrowing, consider:

  • Credit Union Loans: These offer fair terms and lower interest rates.
  • Budgeting Loans: Interest-free loans from the UK government for specific needs.
  • Guarantor Loans: With a guarantor, you may access larger amounts or better rates.

Frequently Asked Questions

Can I get a loan with very bad credit?

Yes, many lenders specialise in loans for people with poor credit. They focus on your ability to afford repayments.

How much can I borrow with bad credit?

Loan amounts typically range from £100 to £5,000, depending on your circumstances and the lender’s criteria.

Will applying for a loan impact my credit score?

Some lenders offer soft searches during the eligibility check, which do not impact your credit score. However, a hard credit check during the application process may leave a mark.

Are bad credit loans regulated in the UK?

Yes, all reputable lenders must be authorised by the Financial Conduct Authority (FCA), ensuring transparency and fairness.