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Bad credit

If you have a less than perfect credit score it can be difficult to borrow money, bad credit loans could enable you borrow.

I want to borrow:


Over how long?

Loans displayed from 9 companies with term lengths between a minimum 1 year and maximum 6 years with a maximum 49.9% APR. How our loans calculator works.

How our loans calculator works

Our loans comparison shows how much each loan is likely to cost per month and in total. The amount we show is based on these assumptions:

  • The representative APR is the interest rate you'll be given
  • The loan amount you entered is the exact amount you'll borrow
  • You won't make any late or early repayments
  • You won't fail to make any of your loan repayments
  • You won't repay the loan before the end of the term
  • You won't make any overpayments or underpayments

Our comparison shows how much each loan should cost you, but the amount could be different if the way you repay it varies from the above assumptions. The amount could also be different if the lender offers you a different interest rate to the APR.

Warning: Late repayments can cause you serious money problems. If you fall behind on your mortgage or debts secured against your home, it may be repossessed. For more information see our debt help guides.

uSwitch Limited is a credit broker, not a lender, for consumer credit products. Our services are provided at no cost to you, but we may receive a commission from the companies we refer you to. For some loans a broker fee of up to 12.5% may be added to the cost of the loan.

Our providers

1plus1 Loans
1st Stop
1st Stop Personal Loans
Aspire Money
Bamboo Loans
Central Trust Ltd
Fluent Loans
George Banco
Hitachi Capital (UK) PLC
Likely Loans
M&S Bank
Masthaven Bank Ltd
My Car Credit
Norton Home Loans
Optimum Credit Ltd
Paragon Bank PLC
Post Office
Prestige Finance Limited
Sainsbury's Bank
Shawbrook Bank Limited
Step One Finance Limited
Tesco Bank
TFS Loans
UK Credit Limited
United Trust Bank
West One Secured Loans Limited

Loans for bad credit in the UK

If you currently experiencing financial difficulties or have damaged your credit score in the past, you may worry about not qualifying to borrow for a personal loan.

However, there are personal loans for bad credit available. Even if you think you have no credit there could be a loan available. You may be able to borrow from a high street lender at a higher rate than their standard personal loans. Alternatively, you could borrow from a specialist company who lend to those with bad credit. So you don't necessarily need a bank loan for a bad credit loan, there are alternatives (but make sure you check out who you will be dealing with and don't get caught out with a dodgy lender).

If you have bad credit some lenders will require you to have a guarantor before they’ll lend to you. A guarantor is someone who is willing to step in to meet your repayments if you find yourself unable to.

If this option is not available to you, it is possible to get a no guarantor bad credit loan, it may need to be secured against your home or it can be unsecured, but will likely come at a higher than typical APR.

What are the advantages of a bad credit loan?

The most obvious answer is that it provides access to credit to those who otherwise would be locked out of borrowing.

Typically a loan will be a cheaper way of borrowing money than through a credit card, you can also usually borrow more and plan the lifetime cost of the loan up-front.

Also it can help those with poor credit ratings to repair their credit score. If all repayments are met for a bad credit loans are met on time, this demonstrates that borrower is reliable and they will see their credit score improve.

What are the disadvantages of a bad credit loan?

Typically the interest rates charged are significantly higher for those borrowing on a bad credit score. Unfortunately those applying for bad credit loans typically have had difficulty managing their finances in the past. Lenders will consider them to be higher risk borrowers and will charge higher rates to reflect this.

As with any personal loan if you don’t keep up with repayments you could face penalties charges and even CCJs or Bankruptcy.

Things to consider before applying for a bad credit loan

Longer repayment periods should give you lower monthly repayments, but ultimately you will pay more interest than if you try and pay the balance off quickly. Though, either way make sure to not overstretch yourself and ensure the monthly repayments are within your budget.

Often interest rates for loans get lower the more you borrow, based on a tiered system. If you are almost borrowing enough to benefit from the lower it rate of the tier above, it might be worth borrowing a little bit more to save money on the lifetime of your loan. Importantly, make sure you only borrow what you can afford.

It could be worth starting off with smaller loans and working up to larger amounts as you improve your credit score through sustainable borrowing.

How we calculate Rep. Example, Total repayable and Monthly repayments

The calculations on the table are designed as an indicator, and may not be exactly what you end up paying. This is because different suppliers have slightly different ways of calculating these figures. However, they will be very similar to the final amounts, usually within a few pounds of the final total and you will always see the final repayment amounts before signing the credit agreement.