Moneyfacts.co.uk Limited is an independent credit broker not a lender. We will receive a payment from credit providers where customers link to them from Moneyfacts.co.uk. None of these arrangements affects our independence.Disclaimer
All loans are subject to the applicant’s status. The APR quoted is representative of the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you are offered may be higher, or you may not be offered credit. Fees and rates subject to change without notice. Please check all rates and terms before borrowing.Quick Links
Quick links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. We also use quick links where we have an arrangement with a preferred broker to move you directly to their site. Depending on the arrangement we may receive a modest commission either when you press a 'Go to Provider' or 'Speak to a Broker' button, when you call an advertised number or when you complete an application.
Bad credit loans are for people with low credit scores, or who have little to no credit history. These loans typically have higher interest rates and greater restrictions than other loans however, they can be useful if managed responsibly.
There are lenders that specialise in helping those with a bad or very bad credit history, even if you have been turned down for a loan by a mainstream lender. You will need to show that you can afford the loan, are earning a good level of income and have overcome your previous difficulties with debt. Bad credit loans usually have higher interest rates than those available from high street banks and mainstream lenders.
Our pre-approved loans service will show you those lenders with that are most likely to accept your loan application.
If you have had issues with your credit history or a have a bad credit score, then you will need to speak to a loans broker or look for a non-mainstream lender. It’s less likely for high street banks to offer bad credit loans. Instead we’ve listed in the chart above those specialist lenders that accept applications from those with bad and very bad credit. You could consider a personal loan, guarantor loan or a secured loan if you are a homeowner.
A personal loan is an unsecured loan that uses your credit history to decide if a lender will give you a loan. This also affects the interest rate and amount of loan you are offered. You can get a personal loan with a previous bad credit history but may find you are offered a guarantor loan instead.
A guarantor loan is a type of loan where someone must act as your guarantor for the loan, this means they commit to paying your loan should you default and not pay it. Guarantor loans are designed for smaller loans ranging from a few hundred to a few thousand pounds. Our pre-approved loans service includes guarantor lenders and you could receive a decision in minutes.
Read our guide to guarantor loans.
If you are looking to borrow more than £10,000 then a secured loan is an alternative. This is where you have an existing mortgage and use your home as security for the loan. You should remember that your home is at risk if you do not pay your secured loan. Read more about secured loans.
Payday loans are one of the most expensive ways to borrow money. If you need to borrow money and cannot get accepted for an alternative loan then you should talk with your local credit union.
Fast cash – some lenders will be able to send you your money in under 24 hours.
Improve your credit score – as long as you make your payments on time you will be able to improve your credit score for the future. This means you can then get finance at better interest rates.
You could lose your home or car – if you get a secured loan, you may find this is repossessed if you fail to keep your repayments.
More expensive interest rates – bad credit loans have higher interest rates, this means you will pay more for the money that you borrow compared to mainstream loans.
BALANCED. Moneyfacts.co.uk is entirely independent and authorised by the Financial Conduct Authority for mortgage, credit and insurance products.
FREE. There is no cost to you. Our service is entirely free and you don't need to share any personal data to access our comparison tables.
TRANSPARENT. We only receive payment from product providers and intermediaries for quick/direct links and adverts through to their websites.
COMPREHENSIVE. We research the whole market and scour the small print so you can find the best products for your needs.
Not sure if lenders are going to give you a mortgage? Have you got a non-standard financial history? Find out what to do here.