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Compare bad credit loans

Check out our best loans for bad credit to see if you can get a better deal on your borrowing if you have a poor credit history.

  • Borrow £1,000 - £50,000
  • Compare loans from dozens of lenders
  • Repay over 1 - 5 years

Bad credit, missed payments or past debt will not necessarily stop you from being able to get a loan.

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Compare bad credit loans from top providers

You'll only find results from genuine companies. Our data experts check each company before we add them to our comparisons.

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Everydayloans
Monevo

How it works

Check your eligibility

Answer a few quick questions. This will not impact your credit score.

Compare personalised loans

See the exact amount you’ll need to pay each month – no estimates.

Apply online

Complete your application on the lender's site. You could get your money in hours.

See the interest rate you’re eligible for before you apply

With real interest rates you'll see exactly how much you’ll need to pay each month. And which lenders will pre-approve your application before you apply.

Monevo example
4 results found, sorted by lowest representative apr. How we order our comparisons.
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Monevo Personal Loan
Loan type
Personal
Loan amount
£1,000 to £35,000
Representative APR
10.6% APR (£15,000 to £19,999)
Loan term
1 year to 5 years
Monevo Personal Loan
Monevo is a credit broker and not a lender.
Representative Example: The representative rate is 10.6% APR (fixed) so if you borrow £15,000 over 5 years at a rate of 10.6% p.a (fixed) you will repay £319.57 per month and £19,174.37 in total.
Eligibility
Credit rating acceptedpoor
Guarantor requiredfalse
Maximum AgeUnlimited
Minimum Age18 years
Minimum income£7,000
UK Resident
Everydayloans Personal Loan
Loan type
Personal
Loan amount
£1,000 to £15,000
Representative APR
99.9% APR (£1,000 to £15,000)
Loan term
2 years to 5 years
Everydayloans Personal Loan
No effect on your credit rating on initial application. No fees or charges. T&Cs apply.
Representative Example: The Representative APR is 99.9% APR (variable) so if you borrow £3,000 over 2 years at a rate of 71.3% p.a (fixed) you will repay £237.75 per month & £5,706 in total.
Eligibility
Credit rating acceptedpoor
Guarantor requiredfalse
Minimum Age21 years
Minimum income£15,000
UK Resident

We are classed as a credit broker for consumer credit, not a lender.

Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.

Powered by Monevo to show you real rates

Your personalised bad credit loan results are powered by Monevo. They make sure you only see real interest rates. Not just estimates like some lenders show you. Monevo is rated 4.5 stars by independent quality rater Feefo.

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What are bad credit loans?

Bad credit loans can help people with a poor credit history to borrow money. Instead of basing the eligibility for a loan primarily on a credit check, lenders of bad credit loans look at each borrower’s individual financial circumstances to assess whether they can afford the loan they are applying for.

So even if you have a poor credit history or have missed payments on debts in the past, you may still be able to get a loan.

Types of bad credit loans

Personal loan

With personal loans you don’t need to put up an asset as security, which is why they are sometimes referred to as "unsecured loans". If you have bad credit, you may be limited to a small number of providers and the interest rates offered on personal loans for people with bad credit may be higher than on standard ones.

Secured loan

With these loans, which are sometimes called "homeowner loans", you need to offer an asset (e.g. a house or car) as security, which the lender can claim if you cannot repay the loan. You are more likely to be offered a secured loan with bad credit, but you need to weigh up the risks carefully as you could lose your possessions if things go wrong.

Guarantor loan

To get this type of loan, you need to appoint a guarantor – a parent, relative or friend who is financially stable and willing to repay the loan if you cannot. Some mortgage providers insist that guarantors put up their own property as surety, meaning that they could lose their home if the debt is not repaid on time. It's important that guarantors understand the risk they are taking before signing on the dotted line.

Peer-to-peer loan

Unlike traditional forms of lending, with these loans, you borrow from an individual instead of from a bank, building society or credit union. Peer-to-peer loans are usually available through online peer-to-peer lending platforms, where cash-rich individuals lend out money to earn returns in the form of interest.

What to consider before you apply for a bad credit loan

Do you need to borrow urgently?

Unless you need the money immediately, it may be better to spend time improving your credit score rather than applying for a loan for bad credit. Doing so will help you secure a lower rate of interest rate, which, in turn, makes you less likely to default and harm your credit score in the future.

How much do you need to borrow?

The amount you borrow plays a role in being accepted for credit. It can also determine the APR you get. Typically, the larger the sum, the lower the interest rate, but it's important to only borrow what you need.

How long do you need to repay the loan?

Although a longer loan term will result in lower monthly payments, it also costs more in the long term because you pay more in interest overall. Choose a term that allows you to repay the loans as quickly as possible, while keeping monthly repayments affordable.

How much can you afford to pay each month?

Keeping monthly repayments affordable is crucial if you already have a poor credit history. Not only can a missed payment lead to extra charges, but it can also further damage your credit score, making it even more difficult to get credit in the future.

How to get a bad credit loan

Compare loans

Use the comparison table above to compare offers. Consider the APR, monthly repayments and total amount you need to pay back.

Choose a deal

Pick a deal and provider that offer you the best combination of APR, term length and monthly payments. Make sure that you choose a loan that is affordable.

Fill out the application form

Enter your name, address and bank details, as well as a summary of your monthly incomings and outgoings. Double-check that everything is accurate.

Start using the funds

Once your application has been approved, the provider will deposit the funds in your account. This usually takes just a day or two, but it can sometimes take up to a week.

Eligibility requirements for bad credit loans

To get a bad credit loan you need to be:

  • over 18

  • a UK resident

  • a current account holder

  • able to prove you can pay back the loan

What are the drawbacks of bad credit loans?

High interest rates

Loans for bad credit have much higher interest rates than standard loans, as borrowers represent a higher risk to lenders. This tends to happen with unsecured loans where there is no security or guarantor.

Risk of repossession

If you put up an asset, such as your car or home, as security for your loan, you may lose it if you fail to repay the loan. This is why you need to think carefully before applying for a secured loan.

Bad credit loan fees

Poor credit loans come with several fees attached, such as arrangement fees, bounced payment fees and early repayment fees. You need to consider how you will pay these in addition to monthly repayments.

Salman Haqqiquotation mark
Bad credit loans are an expensive way to borrow money. But you can still get a good deal and save money if you compare loans. Make sure you only borrow the amount you need and apply for the type of loan that suits your circumstances.
Salman Haqqi, Personal Finance Editor

What are the alternatives to taking out a bad credit loan?

It’s possible that, depending on what you’re borrowing for and how much you intend to borrow, you could consider other forms of credit.

Credit cards

While a loan may allow you to borrow a larger amount, with a credit building card you can apply for a smaller amount to improve your chances of being accepted. If you then make sure you keep up with repayments, eventually you can have your credit limit increased.

Overdrafts

If you’re looking to borrow a small amount of money, then an overdraft may be a more suitable option. If you feel the need for an extra cushion to cover your regular expenses on occasion, you can apply for an overdraft with your current account provider.

You can find out more information on this subject by reading our detailed guide on how to borrow with bad credit.

If you're struggling with debt ...

More than half of UK adults started 2021 in debt, and one in four claim that debt was a direct result of the COVID-19 pandemic¹.

During that same period, figures show that more people repaid consumer debt, with total repayments of £16.6 billion – the most repaid since 1993².

If you are worried about your debts, it’s really important to get free impartial advice – there is no need to pay for it. StepChange is the UK’s leading debt charity and their experts can give free advice and support to help you get back on track with your finances.

Bad credit loans FAQs

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Why compare bad credit loans with money.co.uk?

Comparing bad credit loans could save you money. Our multiple award-winning comparison service makes sure you get the lowest rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators to help you make life's most important decisions and take control of your money.

Proud to be award winning

We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.

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¹Data based on research from money.co.uk's COVID-19 Debt Index

²Based on data from the Bank of England Money and Credit report

Last updated: 15 July 2022