Compare Bad Credit Loans
Compare our range of bad credit loans from UK lenders, check your eligibility* and get instant personalised quotes without impacting your credit score
- Must be a permanent resident of the UK for at least 12 months (Not IOM or Channel Islands)
- Must be aged 20 or over (at start of the loan)
- Must have a current bank or building society account
- No current bankruptcies, CCJ's, or active IVAs
- Must not be unemployed
- Must be aged 18 years or over
- Must be a UK resident
- Interest rates are dependent on your individual credit score
- Must be a homeowner
- Must be aged 21 or over at the start of the loan
- Must be a UK resident (excluding the Channel Islands and Isle of Man)
- Must have a current bank account or building society account
- Must be in permanent paid employment
- Must not be currently bankrupt or in an IVA or debt management arrangement
- Must be aged 21-75
- Must be a UK resident
- Must not be on an active bankruptcy, IVA or equivalent
- Must be a UK resident
- Must be aged between 18 and 70 (at start of the loan)
- Must have UK Bank Account and Debit Card
- Monthly net income of more than £700
- Must be employed or Self Employed
- Be aged between 18 - 72 (at time of application)
- Must be a UK resident (exlcuding the Channel Islands and Isle of Man)
- Have a net monthly income of £600+
- Must not be unemployed, a full time student or on benefits
- Must not be currently bankrupt or in an IVA
- No CCJs or defaults in last 12 months
- Must live in the UK (excluding the Channel Islands and Isle of Man)
- Must be aged 18 or over at start of loan
- No bankruptcies within last 12 months
- Must have a UK Bank Account and Debit Card
- Can be Tenant or Homeowner
- Must be Employed or Self Employed
- Must be permanent UK Resident for at least 12 months (Not IOM or Channel Islands)
- Must be aged 18 or over (at start of the loan)
- Must have a current Bank or Building Society Account
- No current bankruptcies, CCJ's or IVAs
- Must not be unemployed
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.
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.
Our comparison service features a selection of providers from whom we receive commission.
Freedom Finance is a trading style of Freedom Finance Limited who are authorised and regulated by the Financial Conduct Authority. Freedom Finance Limited. Registered Office. Atlantic House, Atlas Business Park, Simonsway, Manchester, M22 5PR. Registered in England & Wales 06297533. FCA No. 662079. VAT Registration Number 257 0001 44.
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What is a bad credit loan?
Bad credit loans are meant for people who have a poor credit score due either to past money troubles or limited credit history.
You can use bad credit loans for emergency expenses, such as car repair, or to consolidate debts into one simple repayment, which can make it easier to repay them and keep track. Some people take out a bad credit loan to try and improve their credit score by showing they can manage debt.
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 lenders who offer other loans, they are still available – you just need to know where to look. Our bad credit loan table will help you find some options that could work for you.
» MORE: How to check your credit score
Types of bad credit loans
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 to the lender. For borrowers, however, borrowing this way is risky as you could lose your home, 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 agrees to cover the cost of the repayments if you are unable.
- Regular personal loan: There are various lenders who will consider offering a personal loan to people with bad credit histories. These are unsecured loans and usually come with higher interest rates, and you will have to meet other eligibility criteria, such as having a steady reliable income, and be able to afford the repayments.
- Peer-to-peer borrowing: Peer-to-peer loans are offered by private investors rather than traditional lenders. Some peer-to-peer loan options may be available to borrowers with a poor credit rating, but interest rates will usually be high and other lending criteria will apply.
- Debt consolidation loans: By merging different loans into a single loan, you can simplify your repayments with a bad credit consolidation loan. These loans come with a single level of interest from one lender, as opposed to maintaining multiple rates from multiple lenders on different debts. Debt consolidation loans can be secured or unsecured.
Applying for a bad credit loan
Before applying for a bad credit loan, you’ll want to think carefully about whether this type of loan is the best option for you. To ensure you choose the right kind of loan, ask yourself:
- Are there cheaper alternatives available to me, such as a bank overdraft or the option of borrowing from a family member?
- Will I be able to borrow enough?
- Can I afford the repayments over the entire term of the loan?
- Can I repay early without incurring charges?
- What is the loan APR?
If you decide applying for a bad credit loan is right for you, first use our comparison table to see deals or check your eligibility.
Loans for Bad Credit FAQs
What are the best loans for bad credit?
The best bad credit loans will have monthly repayments you can comfortably afford and help you meet your goal.
Before applying for a bad credit loan, check the annual percentage rate, also known as APR, as well as the available loan amount, length of loan terms, and the monthly repayment you’ll have to pay
Can I get a personal loan with bad credit?
There are some 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 as having a steady reliable income, and good affordability for the repayments.
Where can I get a loan with bad credit?
You can use our comparison information above to find bad credit loan options that might be right for you.
There are various lenders that will consider lending money to people with bad credit histories. These loans usually come with a higher interest rate than for those with a strong credit history and you will have to meet other eligibility criteria, such as having a steady income and good affordability for the repayments.
How do I get a bad credit loan?
The application process for a bad credit loan is often similar to applying for any other loan. You will usually be asked to provide identification with your name and address history, alongside information about your employment status and financial situation. The lender will run a credit check as a part of the application process.
Can I use a bad credit loan to pay off debt?
Yes, you will usually be able to use a bad credit loan to repay other outstanding debts. In fact, some bad credit loan providers will only lend for this purpose.
Can I get a bad credit loan for a car?
Perhaps. Many car loans are secured loans, whereby the lender retains ownership of the car until you have repaid the debt in full. Therefore, some lenders will consider borrowers with bad credit ratings.
Can I get a bad credit loan without a guarantor?
As detailed above, there are different types of bad credit loans, only one of which is a guarantor loan. The other types of bad credit loans often either charge high interest rates to offset the risk of lending or ask for security such as a car or a property in exchange for the loan.
Are bad credit loans risky?
It can be risky to take out a bad credit loan if you’re unsure if you will be able to repay the loan as agreed. If you run into financial trouble while you still have an outstanding balance on a bad credit loan, interest charges and penalties can mount up quickly. You could see your credit rating suffer even further, or you could lose your home or car.
Sarah Bridge has been writing about business and finance since 2000. She was formerly Deputy Editor, Personal Finance, The Mail on Sunday and was previously the paper's Leisure Correspondent. Read more