Yes, you can still get a loan if you have a poor credit history.

Bad credit loans are not offered by all loans companies, and those that do usually charge a higher APR. This is because borrowers with poor credit are considered a higher credit risk; for example you are more likely to default if you have bad credit.

Loans for poor credit can help you improve your record if you keep up with repayments and pay off the loan on time. If you need a loan for a bad credit rating, this comparison includes personal loans that could accept you.

What types of bad credit loan can you get?

There are several loans you could get with bad credit, including:

  • Unsecured personal loans for bad credit let you borrow money without needing to use a property you own as security for what you borrow.

  • Guarantor loans need someone else to agree to cover your loan payments if you miss them, and can offer lower interest rates. Here is how guarantor loans works.

  • Peer to peer loans let you borrow money from investors rather than a bank or building society, but the rate will be higher if you have bad credit. Here is how peer to peer borrowing works.

This comparison shows what type of loan each lender offers, so you can pick the ones that best suit your circumstances.

Can you get secured loans for bad credit?

Yes, you could also consider a secured loan instead, which would use your home as security.

Your property would be at risk if you did not keep up repayments, but you could borrow 100,000 or more. Here is how secured loans work.

How to find a loan with bad credit

When looking for poor credit loans, consider:

  • Secured or unsecured loans: A secured loan will allow you to borrow more, but there is risk to your property if you are unable to keep up with your repayments.

  • Interest rates: Bad credit loans usually come with much higher interest rates than standard loans, which means they can be expensive to repay.

  • Loan term: The longer you take to pay back your loan, the more you will pay in interest. This means your poor credit loan could cost you more long term.

  • Credit score: If you don't keep up with your repayments, this will negatively effect your credit rating. This will make it harder to be accepted for borrowing, like credit cards and mortgages, in the future.

Think about whether you can afford the repayments and look at alternative ways to borrow before you apply for a bad credit loan.

If you do choose to get a loan, compare all your options carefully to keep your cost down.

Other ways to borrow

Try these alternatives before applying for a bad credit loan:

You can find out more about these alternative ways to borrow with bad credit here.

Bad credit loans FAQs


Will my credit history be checked when I apply?


Yes, most lenders still check your credit record, but they are more willing to lend to you if you have a history of bad credit.


Will a bad credit loan affect my credit rating?


Yes, your application will show on your report. If you make your payments on time it could improve your rating, but if you miss any it will damage it further.


Can I get a guaranteed loan?


No, because lenders check your finances and credit record before they decide if they can offer you a loan.


How much can I borrow with a bad credit loan?


It depends on the type of loan you choose and the lender, but you could borrow up to 50,000 with an unsecured loan.


What is the longest loan term I can get?


Unsecured loans with bad credit usually have a term of between 1 month and 15 years. The longer the loan term, the more interest you pay.


What happens if I cannot make my repayments?


You may be charged a fee and your credit record will be damaged. Here is what to do if you cannot pay back your loan.


What does APR mean?


It stands for annual percentage rate, and is the interest you pay on the total value of your loan. The lower your APR, the lower your monthly payments.

About our loans comparison


Who do we include in this comparison?


We include unsecured loans you can get in the UK from our panel. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.


How do we make money from our comparison?


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.