Bad credit loans

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How can I get a bad credit loan?

If you have a poor credit rating, or simply no credit rating at all, it can be difficult to get a loan approved. However, there are some options available to you such as a bad credit loan or a loan for debt consolidation. Some lenders offer personal loans to people with bad credit but at higher interest rates and with poorer lending options. Although your options may be limited, we compare a range of providers who offer loans for those with a bad credit history. We’ll also show you the likelihood of acceptance without affecting your credit score.

The pros and cons of bad credit loans

Bad credit loans have a poor reputation, but there are some positives to look at:

  • Quick cash – It can take as little as 24 hours for some lenders to transfer funds to your account.
  • Improved credit – If you keep up-to-date with your repayments it can have a positive effect on your credit score.

And with the good comes the bad:

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    High interest rates – Interest rates are considerably higher, meaning you can end up repaying a lot more than you originally borrowed.

    A red cross

    Extra fees – Check the small print for late payment fees, returned payment fees and any other penalties.

How to improve your credit rating

Improving your credit rating is not something that can be fixed overnight if you're trying to get car finance but have a bad credit rating. But there are a number of actions you can take to help get you on the right track: Check your credit report - This will allow you keep a close eye on your score and give you tips on the areas you can improve.

  • Pay back your debts – Prove to lenders that you’re responsible and likely to repay debt.
  • Register on the electoral roll – This makes it easier for lenders to check your details are not fraudulent.
  • Consolidate your debt – Consolidating your debt can help improve your credit rating and it also makes keeping track of payments easier.
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Applying for a bad credit loan

Understanding your financial situation

Everybody's financial situation is different, so it's important to think through a few factors before you apply for a loan:

  • How much you can afford to pay back each month
  • How much you need to borrow
  • What's your credit score is like
  • Be aware of interest rates and how much you'll need to pay back.
  • In some cases, the more you borrow, the lower the interest. Be careful not to borrow more than you can afford to pay back.
  • The repayment term also affects the interest rate. A longer loan term may mean lower monthly repayments. But the interest rates and total repayment cost could be higher.

What you'll need to apply for a poor credit loan

Before you start to look for a suitable loan, there are a few things you'll need before applying:
  • Your current U.K. address
  • An email address and contact number
  • Your annual income
  • Your general outgoings

If I'm refused a loan, does that affect my credit rating?

If you're refused a loan, it can have a harmful effect on your credit report. This is because when you apply, loan companies will carry out a hard credit search to get a complete view of your credit history. The search will help them see if you're a good investment to lend to and whether you have the credit history to back up the repayment.

The good news is, there are other ways you can get credit that don’t involve having a loan refusal mark your record. Comparing a range of loans through a comparison site like means you can view all the options available. All you have to do is type in a few details and we’ll carry out what’s called a soft search.

This soft search will have no impact on your credit score. We’ll only do a hard search once you’ve chosen a provider and have a better idea if you'll be accepted for the loan or not. This is a smart way to avoid having lots of loan refusal applications on your report, which could damage your credit score even more.

Comparing bad credit loans with is a credit broker, not a lender. Our website makes it easy for you to compare a wide variety of products, all from our panel of trusted providers.

If you decide to buy through us, we'll get a small fee from one of these providers.  Find out more about how we operate.

Comparing with us costs you nothing. Also, the size of the provider's fee doesn't affect how we display our products.

Using won't affect your credit rating. The lenders on our panel only use soft credit checks when getting a quote.


What’s the difference between a soft credit check and a hard credit check?

Some lenders use a soft credit check to pre-approve loan offers. A soft credit check also occurs when you check your own credit score. These will not affect your credit rating. A hard credit search would occur when you’re applying for a loan or credit card. These searches will show up on your credit profile and may affect your score, although in many cases only temporarily.

Am I eligible to get a poor credit loan?

To find out if you can be approved for a loan, simply answer a few questions and we’ll allow lenders to carry out a soft credit search to see if they can offer you credit.

What is APR?

Annual percentage rate (APR) is the interest rate applied to your loan. Essentially, it’s the yearly cost of your borrowing – you’ll pay this on top of the sum you applied for. Check out our guide to find out the difference between representative APR and exact APR.

Get a quote
No effect on your credit score

Compare quotes to see your exact monthly payments without affecting your credit score

Need more help? Take a look at our expert guides

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Representative APR vs exact APR

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Improve your credit score? We'll show you how.

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Got credit issues with limited options? We can help.

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