Even with a very low score, defaults or a CCJ, some lenders on our panel may still consider you, focusing on whether repayments are affordable now rather than your history alone.
Checking uses a soft search, so you can see what you could be offered without any further mark on your credit file.
What lenders look at
For borrowers with a difficult credit history, current affordability and recent conduct often matter more than events from years ago. A smaller amount over a comfortable term is easier to approve.
- Your income against your regular outgoings
- How you have managed credit recently
- The amount and term you are applying for
How to improve your chances
Registering on the electoral roll, correcting any errors on your credit file, and applying only for what you need can all help. Using a soft search first avoids stacking up hard searches.
What to expect on rate and amount
With a very low score, the rates you are offered are typically higher, and a smaller amount over a shorter term is often easier to approve. The FCA caps still apply, so the interest and fees can never add up to more than you borrowed.
Loans for extremely bad credit
If your credit is not just poor but severe, with recent defaults, one or more CCJs, or a past bankruptcy or IVA, your choices are narrower, though not always closed. A smaller group of lenders look specifically at very low scores and weigh what you can afford now more heavily than events from years ago.
Expect fewer options, smaller amounts and higher rates. Borrowing a modest sum over a comfortable term, and keeping every repayment on time, is the surest way to widen your options again. Be wary of anyone promising guaranteed approval whatever your circumstances, because no responsible lender can offer that.
Rebuilding your credit over time
Your credit profile can recover with steady, on time payments. A few free habits help it along.
- Make every repayment on time, on any credit you hold
- Register on the electoral roll at your current address
- Keep credit card balances well below their limits
How to apply
Borrowing responsibly
It is worth making sure the monthly repayment fits comfortably around your other commitments before you apply. Focus on the total amount repayable across the full term, not just the headline monthly figure, and only borrow what you really need.
Every lender on our panel is authorised by the Financial Conduct Authority, and high cost short term credit is capped, so you can never repay more in interest and fees than the amount you borrowed. If money is tight, free and impartial help is available from MoneyHelper.
Representative Example: £1,000 borrowed for 18 months. 17 monthly repayments at £87.22, final repayment of £87.70. Total amount repayable £1,570.44. Interest total £570.44. Annual interest rate 59.97% (fixed). Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.