You can still get an unsecured loan if you have a bad credit record, but your choice of lender and the amount you can borrow may be limited.

Use this comparison to find a loan that offers the amount you need to borrow over the time you want to pay it back, by checking:

  • The loan amount, which is how much you can borrow

  • The representative APR, which is how much interest you pay on what you borrow

  • The loan term, which is how long you have to pay it back

You should also check if there are any fees with your loan, like arrangement fees or early repayment charges.

Bad credit loans are more expensive because you are charged a higher interest rate than regular personal loans. However, you can still save money by comparing lenders.

Check if you are eligible

Look for a lender who offers an eligibility check before you apply for a loan. This tells you how likely you are to be accepted for a loan without affecting your credit rating.

Apart from your credit record, your ability to get a loan will be affected by:

  • Your age: Some bad credit lenders require you to be over the age of 25 to borrow money. They may also not lend to you if you are over a certain age, e.g. 65.

  • Your income: Some lenders specify a minimum income requirement to be sure you can afford to pay back your loan, for example 13,000.

  • Any existing debts: If you have outstanding debts, you may struggle to get a loan. Take control of your finances before you look to borrow more money.

  • Other financial commitments: You may be more eligible for an unsecured bad credit loan if you can show that you make regular payments elsewhere, e.g. your mortgage.

Use our repayment calculator to check if you can afford to pay back what you borrow.

What is a guarantor loan?

If you cannot get an unsecured bad credit loan, you may be able to get a guarantor loan instead.

They work like an unsecured loan, but a friend or family member is responsible for paying it back if you cannot make the repayments.

Here is more information about how guarantor loans work and whether they are right for you.

Unsecured bad credit loans FAQs

Q

How much can I borrow with a bad credit loan?

A

This will vary depending on your individual circumstances, but most bad credit lenders offer loans between 1,000 and 25,000.

Q

Is an unsecured bad credit loan more expensive?

A

Yes, lenders charge a higher interest rate than with standard loans because you are considered a higher risk of missing repayments.

Q

Can I get a secured bad credit loan?

A

Yes, but your lender can then sell something you own if you are unable to pay back your loan, e.g. your house. Find bad credit loans using our comparison.

Q

Will applying for a loan affect my credit record?

A

Yes, so avoid making lots of applications in a short space of time. You should also check if you meet lender's eligibility criteria before applying for a loan.

Q

How long will I have to pay back my loan?

A

You can choose a loan term of between 1 and 5 years. However, remember that the longer you take to pay back your loan, the more you will pay in total.

Q

What happens if I cannot pay back my loan?

A

You may be charged a fee and your lender may take legal action to recover their costs. Here is what to do if you cannot pay back your loan.

About our loans comparison

Q

Who do we include in this comparison?

A

We include every loan available directly from lenders and through brokers. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.