Compare Bad Credit Loans

  • Compare companies that offer loan products designed specifically for borrowers with bad credit ratings
  • Check loan details and eligibility requirements carefully before you apply
Lifestyle Loans - Personal Loan
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Lifestyle Loans - Personal Loan

  • Borrow £1,000 - £7,500 over 1-5 years
  • Representative APR 49.9%
  • Must have a minimum income of £1500 per month
  • No CCJs & defaults in the last 12 months
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Representative 49.9% APR, based on borrowing £2000 and repaying over 12 monthly repayments. Monthly repayments is £206.13 with a total amount repayable of £2473.52 which includes the total interest payable of £473.52 Maximum APR: 49.9%.
    • Norton Finance Personal Loan - For homeowners only logo
      Broker

      Norton Finance Personal Loan - For homeowners only

      • Only available to homeowners
      • Loan Type
        Unsecured
      • Representative APR
        15.4% APR
      • Available Amounts
        £3,000 to £25,000
      • Min / Max Terms
        1 to 25 years

      Eligibility Criteria

      • Must be aged 18 to 80
      • Must be a homeowner
      • Must have a minimum income of £7,500 per year from employment, pension or benefits
    • Freedom Finance Personal Loan logo
      Broker

      Freedom Finance Personal Loan

      • Loan Type
        Unsecured
      • Representative APR
        27.5% APR
      • Available Amounts
        £500 to £25,000
      • Min / Max Terms
        1 to 7 years

      Eligibility Criteria

      • Must be aged 18 years or over
      • Must be a UK resident
      • Interest rates are dependent on your individual credit score
    • Buddy Guarantor Loan logo

      Buddy Guarantor Loan

      • Guarantor
      • Loan Type
        Guarantor
      • Representative APR
        49.9% APR
      • Available Amounts
        £1,000 to £10,000
      • Min / Max Terms
        1 to 5 years

      Guarantor Criteria

      • Must be aged 18-75
      • Must be a UK resident
      • Must not be on an active bankruptcy, IVA or equivalent
      • Guarantor does not need to own a home

      Borrower Criteria

      • Must be aged 18-75
      • Must be a UK resident
      • Must have a good credit history
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Our service is free of charge but we receive commissions from the providers we refer you to. This table is initially ordered by representative APR. You can use the options above the table to order it according to various criteria. You may be offered different rates depending on your personal credit rating.

If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.

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How to Choose a Bad Credit Loan

Taking out a loan when you already have a poor credit rating isn’t an easy decision to make. Anyone who has struggled with debt problems in the past will be aware of how easy it is for debt to pile up and become out of control. However, sometimes the right loan can help people in such circumstances, providing it is affordable for the borrower.

Although finding a lender that offers bad credit loans isn’t as easy as finding other loans, they are still available – you just need to know where to look. We hope that our bad credit loan table will help you find some options that could work for you.

Deciding which type of bad credit loan is right

Bad credit loans come in various forms. Each type of loan is suitable for different scenarios, so it takes some careful research to ensure you are applying for the type of loan that will suit your needs and circumstances.

Main types of bad credit loan

  • Secured loan: Although secured loan providers tend to offer larger sums of money over a long period of time, they are often less strict about borrowers’ credit ratings as the loan is secured against a property. If the borrower fails to repay, the lender has the option to force the sale of the property to recoup the money owed, so there is less risk involved. For borrowers, however, borrowing this way is risky so it’s vital that you are confident you can meet the repayment responsibilities before committing to a secured bad credit loan.
  • Guarantor Loans: Guarantor loans are a popular, unsecured method to obtain a loan despite having a poor credit history. If you have a close friend or loved one, who is financially stable and has a good credit score, they can opt to act as a guarantor to your loan. Although you are the borrower, your guarantor pledges to cover the cost of the repayments if you are unable.
  • Regular personal loan: There are various lenders who will consider lending money to people with bad credit histories. These unsecured loans usually come with higher interest rates and you will have to meet other eligibility criteria, such having a steady reliable income income, and good affordability for the repayments.
  • Peer-to-peer borrowing: Some peer-to-peer loan options may consider borrowers with a poor credit rating, but interest rates will usually be high and other lending criteria will apply.

Considerations when choosing a bad credit loan

You may find that you are pleasantly surprised with the number of bad credit loans that are available to you once you start looking. Bad credit loans may be relatively easy to obtain, but usually come with high interest rates as lending to people with poor credit is viewed as higher risk.

Some borrowers opt to take out a bad credit loan to try to improve their credit rating, which can sometimes work providing you stick to your repayment plan and repay the loan in full and on schedule. Others may find that consolidating their existing debt into one simple repayment makes their debt more manageable and affordable, although it can also result in your paying more interest across the entire term of the loan.

However, borrowers need to think carefully about their situation and their requirements. To ensure you choose the right kind of loan, ask yourself:

  1. Are there cheaper alternatives available to me, such as a bank overdraft or the option of borrowing from a family member?
  2. Will I be able to borrow enough?
  3. Can I afford the repayments over the entire term of the loan?
  4. Can I repay early without incurring charges?
  5. What is the loan APR?

Choosing a bad credit loan FAQs

How do I get a bad credit loan?

Can I use a bad credit loan to pay off debt?

Can I get a bad credit loan for a car?

Can I get a bad credit loan without a guarantor?

Are bad credit loans risky?

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