Loans for bad credit and poor credit

Even with a poor credit history you may still be able to get a loan with our bad credit loans tables, specifically designed for those with a poor credit history.

Loans for people with bad or poor credit

If you have had problems with credit in the past, or are currently experiencing financial difficulties, you may think that you won’t qualify for a personal or secured loan.

However, there are loans for bad credit available and here we highlight your choices and the issues you need to consider.

Reasons for needing a loan for bad credit

You may find that you need to apply for a bad credit loan if you have a low or poor credit rating.

This could be the result of missing repayments such as for a credit card, phone contract or mortgage.

You might also be a victim of having a non-existent credit rating.

In order to know if you are trustworthy the bank will want to see evidence that you will make all repayments on time, without a credit history this information isn't available to them.

Compare bad credit loans

Compare a wide range of bad credit loans that are suitable for people with poor credit.

What is a secured loan?

It's very important to be aware of the different types of loans for people with bad credit. There are both secured and unsecured loans.

A secured loan means that the lender has a claim to your property if you cannot keep up with repayments.

There's a chance that the interest rate will be lower for secured loans, however you need to think very carefully before taking one out.

If you default on your payments you could risk losing your home.

Is a secured loan the best choice for people with bad credit?

If you are a homeowner and have a history of bad credit you are more likely to be offered a secured loan rather than a personal loan.

A secured loan does offer more choice as:

However, the lending company is only able to offer these benefits because its risk is reduced by having your house as security against the loan.

What is a guarantor loan?

A guarantor loan is an unsecured loan aimed at those with poor credit scores, but to qualify for it you need to supply a guarantor - a person willing to meet your repayments if you find yourself unable to.

Your guarantor will need to have a good credit score, cannot be financially linked to you (ie your spouse). It's also a good idea to make sure you are on very good terms and that they are fully aware of the risks, so if anything does go wrong, you wont sour your relationship.

Because there is someone able to ensure that payments will be met if you are unable to, the rates are typically lower than other unsecured bad credit borrowing options.

If you meet all your repayments some companies will also gradually drop the interest rate you are being charged to reflect your improving credit score.

What steps can I take to improve my credit rating

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