loan with bad credit score

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loan with bad credit score

Bad Credit (Unsecured & Secured) to £75,000+

If you have been refused loans by high street banks and other lenders you may believe that your financial situation is impossible. But don't panic - financial help is at hand.

We specialise in helping people like yourself. Explore a wide range of bad credit loans. Use our FREE broking service today. One or more loans could suit you. To learn about loan options use these Quick Links:

  • Declined elsewhere?
  • CCJs? Arrears? Defaults?
  • Bankruptcy/IVA?
  • Poor/adverse credit history?
  • No credit history?
  • Self employed? No accounts? No proof of income?
  • Part time employed?

Look at the borrowing "map" below to help you compare & narrow down your options.

Bad Credit Options To Consider

There are a range of loans that can accommodate people with some form of impaired credit rating. There's no single "bad credit loan". Typically these loans for bad credit have higher costs or need some form of security or guarantor. See below for a comparison of poor credit finance. Your specific borrowing options will depend on your personal circumstances and your credit status. If you don't know your credit rating you can find out by using a credit monitoring service.

Guarantor Loans (large/long term)

  • Borrow £500 to £15,000 unsecured
  • Repay over 1 to 5 years
  • Designed for people with poor credit
  • Instant in-principle lending decision
  • Multiple loan/lender options available
  • Guarantor can be a homeowner or a tenant
  • Payouts possible within 24 hours
  • Representative APR 39.9%
  • PCP & HP plans
  • Borrow from £1,000 to £50,000
  • 80+ products / 15+ lenders
  • Keep payments low by not owning vehicle
  • No deposit options available
  • Poor credit acceptable
  • Representative APR 20.1%
  • Borrow up to £2000
  • Repay in installments over 3 to 24 months
  • Fast payout is possible
  • Responsible lending policy
  • Only use this type of loan in exceptional circumstances
  • Representative APR 299%
  • Borrow up to £1000 for up to 30 days
  • Trusted lenders only
  • Get payouts within 24 hours
  • Responsible lending policy
  • Only use this type of cash loan in exceptional circumstances
  • Only use for very short periods of time
  • Representative APR 1081%
  • Small cash sums up to £2,500
  • Repay over 14 to 52 weeks
  • No bank account required
  • Pay weekly in fixed amounts
  • Friendly doorstep service
  • Multiple loan options
  • Representative APR 399.7%
  • Unsecured Loans up to £25,000
  • Repay over 1 to 5 year period
  • Less than perfect credit acceptable
  • Tenant & Homeowners welcome
  • No guarantor required
  • Various lenders available
  • APR varies from 30% to 100% depending on credit score
  • Representative APR c.50%
  • Secured loans up to £250,000
  • Repay over 5 to 25 years (i.e. long term)
  • Access your home's growing value
  • 95% max LTV (higher in special cases)
  • Poor credit plans available
  • You must own your home & have a mortgage
  • Secured on the value of your property
  • From 3.73% APR (Rep. 9.1% APRC)

Guarantor Loans (small/short term)

  • Borrow £100 to £750
  • Repay in instalments over 6, 9, 12 or 24 months (i.e. short term)
  • Same day payouts are achievable
  • Less than perfect credit accepted
  • Lower cost & more flexible than a payday loan
  • Guarantor required but can be a non-homeowner
  • Representative APR 347% (12 months)
  • Borrow £500 to £25,000+
  • Typical Loan value £1000
  • Repay typically over 3 months to 2+ years
  • Loan secured on your car - so be careful
  • Poor credit acceptable (credit check done)
  • Trusted direct lenders
  • Representative APR 189.9%
  • Initial credit limit of £150 to £1000
  • Earn right to increased limit over time
  • Rebuild your credit status
  • Option to protect credit status
  • No Annual Fee
  • Consumer protection built in
  • Representative 39.9% APR (vrbl)

Everything stems from your credit file. You don't have one until you turn 18 and can start to borrow - things like credit cards, loans, mortgages, etc. So, everyone starts by having no finance history at all.

Having no credit history can itself be a problem as lenders can't judge how reliable a borrower you will be, but while this is a problem it is not a majoe problem. In this case a credit card company might offer you a card but with a low limit to begin with.

Over time you accumulate a borrowing/repayment history in your file. Lenders will record your borrowing behaviour with one or more of the UK's three main reference agencies (Experian, Equifax and Callcredit). The files will show whether you pay on time, whether you get into arrears or miss payments, and whether you default on debts completely. You might also get court judgements against you (so-called CCJs). So, there are degrees of "bad creditworthiness". Some people's files contain more adverse events or adverse events of a more severe nature.

When you apply for any form of borrowing the lender will use the data in your file to judge the risk of providing you with it - in other words they will score you. If your score is not high enough they will refuse your application.

Be aware, as well, that the act of applying for credit will be recorded in your file (unless the lender does a "soft search"). If you make applications too frequently this fact will have a further adverse impact on your rating.

You have certain rights if a company decides it won't lend to you:

  • Lenders are obliged to tell you the main reasons for the refusal
  • If you were computer credit scored you can ask the lender to manually review the decision
  • If you were manually scored and you have additional information that you believe may help your case you can ask the lender to review their decision
  • The lender must tell you which credit reference agency they used to get the information about you - you can then check the information held by them to ensure it is accurate.

If the decision is reviewed by a lender then may still turn your application down. Since not all lenders use the same credit reference agencies and because they may/will use different scoring techniques while one lender may refuse your application another may accept it. But be cautious about applying too frequently as this act itself may affect your score!

Guarantor loans are one type of unsecured loan that could help you get finance when your borrowing history is less than perfect. Guarantor loans require you to provide someone to back you in your application and to stand behind your debt and repayments should you fail to do so.

They work on the principle that if you can find someone who trusts you to pay off the debt then your credit score (i.e. the measure of risk of lending to you based on your historic behaviour) is much less relevant.

In addition to getting you the borrowing you need they offer you the chance to improve/rebuild your credit rating. Each time you make a monthly repayment on time and in full this good news is added to your file so helping to dilute the bad news that is already on there.

As you can see from the comparison of borrowing options above there is no single type of product - just a number of alternatives that may suit people who have issues in their borrowing file. So, whether a loan is "safe" or not depends on the type of product in question.

So, what would be the worst case consequences of not keeping up your repayments:

  • Guarantor Loan (unsecured) - your guarantor would be asked to step in and make the repayment; this would undoubtedly sour your relationship with your guarantor. Your file would be marked with the missed payments. A lender could ultimately go to Court to get an order agaionst you.
  • Personal Loan (unsecured) - missed payments would be recorded on your file. If the lender were to issue a default notice this would also be recorded. The lender could go to Court to get a judgement (CCJs) and ultimately an order could be given to recover property to help repay the debt.
  • Secured Loan (e.g. homeowner and logbook) - when you borrow this way you place an asset (e.g. your house or car) as security. Ultimately the asset could be seized by the lender to pay off the debt.
  • Cash Loan (e.g. payday and doorstep) - these short term loans are "political dynamite" so lenders are very cautious about handling missed payments or delays in payment. There are very strict rules about how a lender can enforce the borrowing terms. Failure to repay will damage your credit rating.

In the case of any type of finance you should never borrow more than you can afford to repay. Lenders are required to conduct affordability tests prior to lending any money. But as a borrower you are obliged to repay on the terms agreed. If you fail to there are always going to be some consequences. At the very least your borrowing rating will be downgraded making borrowing harder in the future.

Your borrowing history and your file is an aggregation of all your interactions with finance companies and other businesses who let you borrow (e.g. utility companies and phone companies). If you have experienced money problems and this has led to you missing loan repayments or being late paying some bills then your file will be tarnished for a while.

If you were to need to borrow more in this situation then it may be more difficult to. So, a lender who is more tolerant or a financing product that is more tolerant of a poor borrowing history is likely to be a solution. All the loans on this page are tolerant of a less than perfect history. The loans may be more expensive than you are used to but this will be the case while you are seen as a higher risk. However, if you pay off any new borrowing on time and in full your credit history will be improved and rates you pay in the future are likely to be lower.

The key advantage is that just when you think you can't get finance you can - all the finance products above are built with borrowing issues in mind. You don't need perfect credit to get what you need.

Without these sorts of loan available people who have an adverse histories would never be able to borrow again and they would never be able to prove that they could manage their finances. The reality is that credit issues can hit anyone at any time due to a change of circumstances (e.g. moving house, changing job, becoming unemployed, etc).

The phrase "bad credit" is bandied about a lot. But at the heart of this phrase is the reality that someone has had a problem managing the borrowing they have previously been allowed. It could be a few missed payments or something more serious like a default notice or a CCJ. For a new lender deciding whether to lend they will see people with bad credit histories as more risky.

A lender could choose not to lend or they could choose to do so at an interest rate that is higher than normal to help offset the higher risk. It is this higher interest charge or APR that is perhaps the major disadvantage. But in addition a borrower could be requested to offer a guarantor or an asset as security.

Bad credit is a term used to describe the bad credit behavior of borrowers who consistently make delayed payments or completely default a loan. Bad credit loans are unsecured loans with no guarantor and no collateral. These loans can be availed even if your credit score is poor or zero. While processing loan applications, we at A ONE LOANS don’t give importance to the credit score of our customers and approve their requests instantly.

If you are experiencing credit problems and financial difficulties in the UK, you may not be eligible to receive a personal loan. A number of banks and typical offline lenders consider it risky to lend to those with an adverse credit score. However, with A ONE LOANS, you need not to worry about your poor credit score. There are instant and guaranteed personal loans for bad credit available with us to help you raise the much-needed cash you require to manage a financial emergency and rebuild your adverse credit score.

A ONE LOANS is a specialist in helping people with financial problems like you, offering you a range of borrowing options. We can instantly approve loans for people with bad credit for you that do not require you to pay any upfront fee, unlike other lenders. Specially designed for those with a poor credit score can prove to be a blessing in disguise. It helps you to borrow money that is otherwise not possible due to your adverse credit history. With A ONE LOANS, we make it possible for you to receive personal loans for bad credit online, which may be needed for debt consolidation or covering a major purchase.

We will also come to your rescue when you do not have a guarantor to apply a loan for people with bad or poor credit score. In fact, with us, you can apply for a bad credit loan with no guarantor and get an instant approval. You can get the funds at the lowest interest rates with easy repayment options. This may even help you to repair your credit rating and status if you will make repayments on time, demonstrating that you are a responsible person who can properly manage money.

Since, you are in a financially starved condition; you might find some lenders trying to impress you to avail bad credit loans in the UK from them, with a hope to levy higher interest rate. Watch out for such unreliable lending companies. At A ONE LOANS, we present before you trust of a direct lender in the UK by offering reliable lending options to cover your urgent financial requirements that lend without charging any fees at all! So come in touch with us to get access to loans for people with bad credit with no upfront fees and improve your credit score – the right time is now!

Online personal loans for people with bad credit.

You need money now, and it’s as simple as that. Because things happen. Maybe a big expense popped up, maybe you need to pay off bills, or rent a moving truck to relocate for a job. And the amount you need isn’t all that much—500 dollars, or maybe a thousand.

In a perfect world, everyone would have a healthy savings account to dip into. But the reality is quite different, because recent studies show that 60 percent of Americans have less than $500 in savings. (1) To make matters worse, more than half of Americans have “bad credit”—a FICO score of 620 or below. (2)

So, if you have bad credit and need money now, you’re not alone. But where can you turn?

Bad credit shouldn’t to lead to high fees and rigid deadlines. We offer bad credit loans with longer terms, larger amounts and APRs up to 125% lower for people with bad credit.

A bad credit loan is a type of personal loan offered to borrowers with weak, bad, or no credit. There are many different loans and many different types of financial institutions that offer them—banks, credit unions, and online lenders, among others.

One characteristic of bad credit loans is that they will generally be expensive. This is because lenders charge higher interest rates to borrowers with bad credit than they do to borrowers with good credit.

So what is a good credit score and what is a bad one? Generally, a FICO score below 630 is considered bad. To see where you fall, use the table below. If you don’t know your credit score, you may be able to access it through your online bank account or credit card statement. You can also get a free credit score through sites like CreditKarma.com and Experian.com.

Loans for Bad Credit FICO Score Range

At this point, you may be thinking: Wait a minute! I have bad credit AND I’m broke. And because of that, a lender wants to charge me EXTRA interest?

Well the answer, sadly, is yes. Lenders are going to charge you extra.

When you have bad credit, it means you have a history of paying your debts late or not at all. (You can read more about credit scores and what they mean in our guide to improving your credit score eBook.) This makes it riskier for lenders to let you borrow money. From their perspective, you already have a history of not paying your debts, so why should they expect it to be any different with them? If they lend you a thousand dollars, there’s a very real risk that they’re not going to be repaid.

To compensate themselves for that risk, lenders charge higher interest rates (the cost of borrowing money) to borrowers with bad credit. This way they make more money on these risky lending arrangements, which offsets the very real possibility of many of their borrowers defaulting (failing to repay their debts).

Say 100 people borrow money and 20 of them don’t pay it back. The lender needs to make enough money on the other 80 to cover the loss on the 20 and make a profit. When they lend to people with good credit, they get paid back more often, so they don’t charge as much.

A bad credit loan may sound like a great idea when you’re desperate for cash, but look a little closer and you’ll see that most bad credit loans will make your financial life much worse in the long run.

Even People with Bad Credit Have Options

There are two basic types of bad credit loans: secured and unsecured.

An unsecured bad credit loan means that borrowers sign a contract and promise to repay their loan according to the terms and conditions of their loan. If they fail to repay their loan, the lender may pursue collection of the money owed through a collections agency or other legal mechanism. Typical unsecured bad credit loans include personal installment loans, credit cards, and student loans.

A secured bad credit loan requires that the borrower use a valuable item—like a car, a home, or a piece of jewelry—as collateral to “secure” the loan. This means that if a borrower is unable to repay the loan, the lender is legally allowed to seize the collateral and sell it to recoup their losses. Typical secured loans include mortgages, car title loans, and pawnshop loans.

Technically, a payday loan is a secured loan. You’re not offering your car or the deed to your house, but with a predatory payday loan, you are securing the loan with a check for the amount you’ve borrowed, plus interest or fees. If you’re unable to repay the extremely high-interest loan by the due date (most borrowers aren’t), the payday lender will cash your check.

Ratings of Types of Loans for Bad Credit

Are Bad Credit Loans safe or dangerous?

Bad credit loans—or no credit check loans—are risky. If your lender doesn’t check your credit, or your ability to repay your loan, that’s a sign that they aren’t offering you a responsible loan. If they don’t care about your credit, they don’t care about you.

Dealing with the Risk in Bad Credit Loans

Say you want to buy a set of used furniture for your living room. You could visit the online used furniture store website with great customer reviews—an A+ Better Business Bureau rating, and friendly and knowledgeable customer service reps you can actually talk to on the phone—or you could buy it from a sketchy looking stranger selling it out of the back of his truck. It’s the same furniture, right? What’s the difference?

Well, whether it’s furniture, cars, home appliances or personal lenders, knowing and trusting the businesses you’re working with matters.

If you need a bad credit loan, you can expect a lot of sketchy strangers to come calling for your business. They’ll promise cash right now without a credit check. And while that all might sound well and good in the moment, you can be sure there’s a catch—sky-high annual percentage rates (APRs), short terms, and a long future of debt rollover.

But don’t panic! If you need a bad credit loan, it can be done safely. Here are the steps we recommend to find socially responsible, legitimate lenders who can get you the money you need now and even help you improve your credit score.

If you have bad credit and need a loan, look for a lender who…

Offers personal installment loans, rather than payday loans

Payday and title loans are the quickest way to ruin your finances. Getting a payday loan is never worth the risk. Remember: four out of five payday loans are rolled over or renewed, (3) and the typical payday borrower spends more than half of the year in debt to their payday lender. (4) And all this for a loan that was supposed to only last two weeks! No matter how you look at it, the odds are stacked against you.

Instead, you can find a bad credit loan from lenders who offer personal installment loans. Personal installment loans come with longer terms, lower rates, and—unlike predatory payday and title loans—are designed to be repaid.

Considers your ability to repay

Your ability to afford your loan is the single most important factor that both you and your lender should consider before you decide to borrow money. While a predatory lender wants to trap you with a short-term, high-interest debt that you won’t be able to repay (leading to a toxic cycle of re-borrowing or extending the life of your loan at the cost of additional fees and interest), a socially responsible lender will verify your income, look at your bank statements, and decide to approve or deny your loan not based on your ability to repay what you borrow.

Performs a soft credit check

You can bet that a lender who doesn’t check your credit at all isn’t interested in your ability to repay your loan. If your potential lender performs no credit check whatsoever, run.

You should also avoid lenders who perform what’s called a hard credit inquiry. These credit checks signal the credit bureaus and can harm your credit score. Hard credit inquiries (or hard credit checks) are typically initiated by lenders or credit card companies—and require your authorization. When a hard credit check is run, it can remain on your credit report for up to two years.

Alternatively, you should seek a lender who will run a “soft credit inquiry” or soft credit check. You can run a soft credit check on yourself, or it could be initiated by a lender, potential employer or landlord. Soft credit checks do not negatively impact your credit score. These are a safe alternative to hard credit checks.

Offers you flexible terms and repayment plans

When looking for a bad credit loan, one of the surest signs you’re dealing with a predatory lender is a short-term repayment structure. Typical payday lenders offer terms of two weeks. Typical title lenders offer terms of 30 days. These short terms (and the astronomically high APRs) make on-time repayment very difficult.

Instead, look for a personal installment loan with longer terms. Generally, longer terms will translate into lower monthly payments, and a more affordable loan that borrowers will be able to repay.

Reports your payments to the credit bureaus

Speaking of repayment… You’re looking for a bad credit loan because you have bad credit. When you repay an installment loan with a lender who reports payments to the credit bureaus, you can actually improve your credit score over time! Check with your potential lender and ask them, do they report on-time payments to the credit bureaus. If they do, you can use that installment loan to solve your short-term problem and grow your credit over the long term.

If you have bad credit, then you are likely all too familiar with the frustrations a low credit score can bring.

You don’t have to live with bad credit forever. Even the most damaging credit mistakes can be repaired over time. The first step toward fixing your credit is to put a stop to the habits that are contributing to your low credit score. Don’t open new credit card accounts, don’t let lenders run hard credit checks on you and don’t let predatory lenders deceive you into taking out harmful, short-term loans that you won’t be able to repay.

With a safe, personal installment loan from OppLoans, you can be certain that our soft credit inquiry won’t impact your credit. We’ll focus on your ability to repay what you borrow. And we’ll work with you to set a flexible repayment plan that fits comfortably into your life. And if you ever have questions, or need help, you can call us! (We’re a lender who answers the phone and actually wants to speak with you—how different is that?)

Taking out a bad credit loan is a major decision. Make sure you’re not just selecting a loan, but also a financial partner who wants to help you succeed today and in the future.

Bad Credit Loans We Can Help When Others Can't

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Getting Personal With Bad Credit Loans

At Bad Credit Loans, we understand that there are emergencies no one can plan for, and we aren’t limited to helping only consumers with perfect credit. Sometimes a run of bad luck comes up through no fault of your own. However, as long as you’re working, we have the resources to lend you a helping hand no matter if your credit is good or bad. We want to help inform you on making responsible lending decisions and then connect you to available lenders and financial service providers if you feel a bad credit loan would be right for you.

Bad Credit Loans Can Help

We know that it’s the people who are struggling that really need the personal loans, not those with the spotless credit histories who are paying all their bills on time. A perfect spending history simply isn’t possible for many American households, especially in times like these. No matter how well you’ve planned your budget and spending strategies, they can still be thrown off by one unexpected car repair or other emergency when already living paycheck to paycheck.

Fast, Convenient Loan Requests

Our online system makes it easier than ever to request a loan. Just fill out our fast and convenient online loan request and you can get a personal loan offer in minutes from our network of lenders and financial service providers. Your approved loan can be deposited electronically into your checking account in as fast as one business day.

With the personal loans our lenders and financial service providers offer, you will always know exactly what to expect before you are under any obligation to actually take out the loan. All the lenders and financial service providers in our network strictly follow the Truth in Lending Act, which means that you’ll receive documentation of every last detail of your loan beforehand. You’ll be able to see all applicable interest rates, possible fees, and all other information on your loan, allowing you to make an informed, responsible borrowing decision without any pressure.

The approval process for bad credit loans is very straightforward. We require that you’re a legal citizen and an adult (age 18 or older). You’ll need to provide some other basic information for the transaction to take place, such as a valid email address, working phone number, and the bank account where you’d like the money transferred. It’s that easy.

Combining a fast loan request form and approval process with an equally fast delivery system makes getting a bad credit loan easy.

While we try to connect everyone with the personal loans they want, we are especially concerned with keeping consumers requesting only the loans they need. We offer a variety of free, expertly written articles explaining every part of the loan process. You can also find articles replete with:

  • Tips on when to take out a loan
  • How to spend the funds responsibly
  • How to budget your future income in order to pay off a loan quickly

The Cost of Not Getting a Loan

Financial emergencies can strike without any warning: the car could break down, a bill may have gone unnoticed and unpaid for too long, but really, dwelling on the possibilities could last a long time. and isn’t fixing anything.

At Bad Credit Loans, we are more interested in helping you create solutions. Hoping that an emergency will just “go away” if you ignore it tends to only make things worse via late fees and other penalties. Staying pro-active keeps you informed and in control. A quick influx of much-needed funds, when used responsibly, can be exactly what you need to keep bills from getting out of hand.

Unfortunately, no matter how hardworking you are, it doesn’t protect you in an emergency. Most lenders won’t approve those who are struggling to make ends meet, but at Bad Credit Loans, that’s exactly why we offer our services: We connect you with lenders and financial service providers that are ready to help.

In today’s world, it’s become all too easy to get trapped by finances. Bad Credit Loans gives you a way out by connecting you to the assistance you need to help weather a financial emergency and get back on track quickly and responsibly.

APR – Representative Range Explanation

Bad Credit Loans isn’t a lender and doesn’t provide unsecured loans, but it refers consumers to lenders and financial service providers who may provide such loans. A personal loan from a lender or financial service provider in our network often ranges between 5.99% and 35.99%, although APRs vary according to the information that is supplied by you in your loan request. Your lender will provide you with the APR, loan fees and other terms when you are redirected to your loan agreement during the loan request process. For help with any Bad Credit Loans–related services, feel free to contact us.

The APR on a personal loan from our network of lenders and financial service providers often ranges from 5.99% to 35.99% percent depending on exactly how it is calculated by your lender or financial service provider, the duration of the loan, any loan fees incurred, late payment penalties, nonpayment fees, loan renewal actions and various other factors. Please keep in mind that the APR range and your finance charge are not one and the same. The latter will be disclosed later on in the loan request process.

Following is a representative example of a cash loan APR range:

Borrow $2,000 for 12 months with a 19.9% representative APR and a monthly repayment of $183.63 . Total repayment will be $2203.56.

Short-term cash loans are somewhat expensive when compared with other loan products. They are not recommended as a long-term financial solution, and they should only be taken out for emergency financial needs.

Important Implications to Consider

We would like to remind you that Bad Credit Loans is not a lender, and it doesn’t charge users any fees for its services. Every lender and financial service provider in the Bad Credit Loans affiliate network provides consumers with specific terms, conditions and practices prior to their acceptance of offered loans. Bad Credit Loans strongly recommends that you carefully review the terms and conditions of any loan offer that you receive. For further details about the aforementioned considerations, please see ourRates & Fees and Policy on Responsible Lending Web pages.

When you accept the terms and conditions of a particular loan offer, you are agreeing to pay back the loan principal and finance charges in the amount of time that is specified in the documents your lenders supplies you with. Additional fees/charges by your lender may apply if you are not able to repay your loan in full or if you make a late payment. Bad Credit Loans is not able to predict the amount of the penalties that you will incur as a result of nonpayment, late payment or partial payment. Bad Credit Loans has no control over knowledge of the loan details between you and the lender with whom you are working. Please refer to the nonpayment, late payment and partial payment policies detailed in your lender’s loan documents. Bad Credit Loans makes a concerted effort to work only with reputable lenders who follow Fair Debt Collection Practices.

FINANCIAL IMPLICATIONS (INTEREST AND FINANCE CHARGES)

If you are approved for a personal loan, your lender will inform you of the exact interest rate and fees attached to your loan prior to your acceptance of said loan. As stated earlier, Bad Credit Loans is not a lender and is unable to predict the exact interest rate and fees for the loan option presented to you. You are under absolutely no obligation at all to accept the loan terms that the lender presents you with.

POTENTIAL IMPACT TO CREDIT SCORE

Although Bad Credit Loans does not make credit decisions, we may do a soft credit inquiry as part of the process. Personal Loan lenders in the Bad Credit Loans affiliate network may conduct a non-traditional credit check in addition to a conventional credit inquiry from the 3 major credit bureaus (Trans Union, Experian, and Equifax) to determine your eligibility for a personal loan. If you do not pay back your loan on time your lender may choose to report this delinquency to one or more credit bureaus, with the end result being that your credit score could be negatively affected. We wholeheartedly encourage consumers to consult a credit counseling company in the event that they are experiencing credit problems.

Loan renewal policies are largely governed by state regulations. Your lender will present you with available loan renewal options prior to your acceptance of their loan offer. Please be sure to diligently read the lender’s renewal policy prior to signing the loan documents. Short-term cash loans are meant to be a short-term financial instrument. Bad Credit Loans encourages all consumers to repay their loan in full and on time in order to avoid late payment and/or nonpayment penalties. If you think there’s a possibility you could end up being unable to pay off a personal loan that you borrow, we would recommend that you explore different loan alternatives before requesting a loan through our website.

Again, Bad Credit Loans is not a lender, and moreover, it doesn’t engage in debt collection practices. Your lender’s collection practices will be clearly disclosed to you in the loan documents that you receive. Should you be unsure of the specific collection practices used by a particular lender, we strongly advise that you discuss this issue with the lender directly. Bad Credit Loans makes reasonable efforts to only work with reputable, established lenders who follow Fair Debt Collection Practices.

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Legal Disclaimer: The purpose of this website is to connect potential borrowers with the lenders and financial service providers that advertise on this website. The operator of this website is neither a lender nor a broker and does not make any credit decisions. This website merely takes information from consumers and forwards it to lenders and third parties who may be able to provide the types of loans that may meet the consumers needs. For those consumers who do not qualify for a Personal Loan, we will refer you to alternative lenders and providers. This website shall not be considered an offer or solicitation for a loan. There is no guarantee that you will be approved for any type of loan. We do not charge you for the service we provide and are not a representative or agent of any lender or third party provider. We are compensated by lenders and third parties. The time it takes for money to transfer to your account will vary by lender and also depend on your individual financial institution. You may be required to fax information to your lender in order to receive a loan. This service and lenders are not available in all states. If you have any question regarding the details of your loan, you should contact your lender directly. Personal loans and other types of loans should not be considered a long term financial solution. They are means to provide short term financing to solve immediate financial needs. Lenders and third party providers may perform a credit check with one or more credit agencies. These credit checks can have an impact on your credit score. By submitting your request, you are authorizing the lenders and third party providers to independently verify the information you submitted and your credit worthiness. Nothing on this website shall constitute an offer or solicitation for a loan.

While there is technically no such thing as a "bad credit loan," what customers who seek this out are typically looking for is a lender who will consider them, despite less-than-perfect credit.

How much do you want to borrow?

On Stride Financial offers repayment terms of 1 – 2 years.

Amount of credit: £1,800 for 24 months at £135.47 per month. Total repayment of £3,251.27. Interest: £1,451.27. Interest rate: 65% pa (fixed). 88.1% APR Representative.

Amount of credit: £1,800 for 24 months at £135.47 per month. Total repayment of £3,251.27. Interest: £1,451.27. Interest rate: 65% pa (fixed). 88.1% APR Representative.

On Stride Financial prides itself on helping approved customers find the funding they need. Our loans are designed to fit a customer's unique financial situation, with variable loan terms and loan amounts that allow for added loan customisation. With an online application built for simplicity, applying for the funds you need is a clear, uncomplicated process.

Apply today for an On Stride Financial loan from £1,000 to £3,000. Loans are unsecured with durations available at 1 or 2 years. Actual loan amount may vary based on application details.

Understanding Bad Credit Loans

First, let's talk about the name.

There's no such thing as a "bad credit loan." There are a few reasons for this, but let's start with the phrase "bad credit," an ambiguous description that doesn't provide any real information about an individual's credit. The term "bad credit" tends to be used any time an individual's credit is less than perfect, but it's important to understand that your credit report is quantified not with monikers like "good" or "bad," but with a number. While this number provides creditors or lenders with a more specific idea of your credit standing, even this isn't the whole story, as different reporting agencies have different rating scales.

"It's important to understand that your credit report is quantified not with monikers like 'good' or 'bad,' but with a number."

Another reason bad credit loans can't truly be called a loan type, is that lenders aren't really offering something called a "bad credit loan." While some lenders may target individuals with less-than-perfect credit, this doesn't mean that a bad credit loan exists nor does it mean that the lender will offer loans to everyone regardless of their credit rating, only that there are loans for individuals with less-than-ideal credit. This may seem a minor distinction, but one of the first questions a potential borrower should ask is, "What kind of loan do I need?" and the answer shouldn't be (and, as we've seen, cannot be) "A bad credit loan."

Moving Forward with Less-Than-Perfect Credit

Plenty of people have found themselves at one time or another with less-than-perfect credit. Oftentimes these individuals find that their flawed credit keeps them from accessing certain loan types, or may lead to less favorable loan terms. Whether it's due to an accumulation of debt, missed utility payments or something else altogether, having an imperfect credit score is not only a common problem, but doesn't necessarily preclude an individual from finding the emergency funding they might need. Particularly if the individual has worked diligently to get their finances back on track, they may find that there are a number of options available to them.

Having flawed credit should change the way you approach a loan, and anyone with poor credit who is considering a loan needs to understand that if they don't repay on time and in full, their credit could end up worse than it was before they took the loan, depending on how exactly the lender chooses to report non-repayment. (Learn more on this in our Bad Credit Loan FAQ section.)

"Having an imperfect credit score is not only a common problem, but doesn't necessarily preclude an individual from finding the emergency funding they might need."

If you're an individual with less-than-perfect credit, and taking on a loan is the only option you have to get the funds you need, be sure to choose your loan type and lender wisely. When determining the right loan type, you'll need to factor in considerations like typical loan duration and terms, the total cost of the credit, the repayment amounts, requirements for acquiring a certain loan, and whether or not the loan comes with any added fees. To answer these questions, you need to look at your financial circumstances and determine what you need and can afford to pay back on time. Would it make more sense with your budget and income to repay your loan in a month, or in a year? Would one large repayment work best, or would it be more practical to repay in instalments? Do you need a small loan (£100), or a bigger loan (£5,000)? (Try taking a look at our personal loan page, instalment loan page and unsecured loan page to get a better idea of each of these broad loan types.

By answering these questions, you can better target the right loan and lender for you — a hugely important consideration for anyone taking on a loan. By ensuring that your loan will work for you, you're ensuring that you'll be more likely to repay in full and on time, which is possibly the most important aspect of borrowing money.

Moving Forward with Less-Than-Perfect Credit

Check For Mistakes, and Get Them Fixed!

All three major credit reference agencies — Experian, Equifax and Callcredit — are required by law to provide your credit report for £2, which means there's really no excuse for not having reviewed your credit report. Particularly when you consider the possibility that your report has errors, and your credit score is reflecting them.

Review your credit report closely alongside your spending history and, if applicable, the repayment history for any credit you may have taken in the past. If you think there are errors — wrong address, missing accounts, wrong repayment information, etc. — you should notify the credit reference agency directly (Experian, Equifax, Callcredit). The agency has 28 days to either remove the information, or state why they believe the information is correct. Furthermore, if you feel that certain key information is lacking — e.g., you're working, and the debt you have was caused by being out of work — you can add a "notice of correction" to your credit report, articulating the information you want potential credit lenders to see.

This is a longer-term solution, but it deserves a place on this list, as it remains the simplest way to build or improve your credit. It's important to check whether the lender or service provider report payment activity or not, but regardless, whether you're paying utilities or repaying a loan, mortgage or credit card, do whatever you have to do to make sure that your payments are on time and complete. This is the surest way to prove that you're a reliable borrower, which is ultimately what lenders want to know — "Can I trust this borrower to repay in a timely manner, or can't I?"

Show them that the answer is "Yes!"

While information like your spending history is obviously included in your credit report, another key element that could make or break your loan request is your voter registration status. This is information that lenders use to verify your name and address in avoiding fraud, and lacking it could be a hurdle. By not having your registration information available on your credit report, lenders may find themselves unsure of your identity, and less willing to give you the funding you need. Head to About My Vote to register, and give lenders one more reason to consider you for a loan.

It's important to understand that technically, there is no such thing as a "bad credit loan." Most lenders will not give out loans to individuals who have bad credit, and consumers should be wary of lenders advertising these loans.

That said, it's a good idea to understand the type of loan typically offered to individuals that may have had past credit issues, but have been working to fix them. These loans will often be short-term, for relatively smaller amounts, and with a larger interest rate. The reason for this is essentially that an individual with less-than-perfect credit represents a greater risk to the lender, and to keep it simple: The higher the risk, the higher the interest rate.

Will having bad credit keep me from getting a loan?

This is a common concern for individuals with poor credit, and understandably so — when your credit is not perfect, it can feel as though you're facing nothing but closed doors. That said, while no lenders are prepared to guarantee loans for customer with flawed credit, plenty of lenders will consider an individual who had previous credit problems but has worked diligently to fix them. Being taken on a case-by-case basis means that some lenders may consider you for a loan because you have been working to improve your credit.

How are my credit report and credit score created?

This is a tricky question to answer, and that's thanks in part to the existence of three chief credit reference agencies in the UK — Experian, Equifax and Callcredit. While these three agencies will use similar information to compile your credit report, there is no guarantee that lenders will report the same pieces of information to all three of the agencies. This means that you can review different versions of your credit report, depending on the agency you request it from.

Similarly, the three agencies create scores based on their own unique grading systems. For instance, the range for an Experian credit score is 330 to 830; the range for Equifax is 280 to 850; and Callcredit scores are out of 1000. Past that, certain lenders may even create their own proprietary scores based on the credit reports they have pulled.

Ultimately, your credit report will be created from some combination of the following information: Your spending history, mortgages, credit cards, late or missed payments, debt, checking accounts, repossessions, overdrafts, electoral roll, court judgments, etc. While some of this information is public (electoral roll, court judgments), a majority of it will come from lenders or other credit providers, and will be reported to the three major agencies at the lender's discretion. If you have questions as to what your lender reports, be sure to ask them!

Can borrowing a loan improve my credit score?

In and of itself, the act of taking out a loan won't improve your credit score. In fact, if you apply for too many loans, it can have a negative effect, as each new loan application can be documented in your credit report as an enquiry. If you have too many enquiries on your report, it can indicate to lenders that you may be desperate for funds, or are compiling loan debts that you may not be able to repay. This isn't intended to frighten you away from applying for a loan, but to serve as a reminder that a loan application is a very serious commitment, and should be treated as such.

Once a loan has been taken out, the effect it has on your credit score depends mostly on your prompt and full repayment. Whether a short-term loan or instalment loan, a £100 loan or a £1,000 loan, the main thing future lenders want to know is if you can repay the amount you're borrowing, with interest. If your credit report proves that you can, it should be reflected positively in your credit score.

Still worried about your credit options? Our sister company has additional information regarding bad credit loans in the short term lending market.

  • QuickQuid's Bad Credit Loan Alternative - Discussion about bad credit loans.
  • Pounds to Pocket's Bad Credit Loan Alternative - Information to help understand bad credit loan options in the market.
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