If you are a homeowner and have bad credit some lenders could offer you a secured loan.

To get a secured loan with poor credit you will still need to be credit checked, but if you use a broker they can give you an indication of whether your application will be accepted before you apply.

You may be able to get a secured loan even if you have:

  • Mortgage arrears

  • County Court Judgements (CCJs)

  • Other missed repayments

Here is how your credit record affects your loan application

Getting the right secured loan

You need to find a loan that:

  • Lets you borrow the amount of money you need

  • Gives you enough time to pay back what you owe

  • Will accept your application even if you have bad credit

  • Has the lowest interest rate you can find

To get the best secured loan if you have bad credit, speak with a qualified broker.

Most lenders no longer offer loans directly to borrowers, instead working with brokers.

A good broker will assess your circumstances before you apply, including any credit problems, and help you find a suitable loan that meets your needs.

Secured loans are tied to your property putting it at risk, here is how they work.

What are the pros and cons of taking out a secured loan with bad credit?

Getting a loan can sometimes become necessary, but it isn't something to be taken lightly. This is especially true if you have bad credit. Consider the following pros and cons to help you decide:


  • Quick access to cash: Many lenders will transfer funds in 24 hours

  • May allow you to borrow more: The loans are secured to your property, so banks may be willing to lend you more than otherwise would.

  • May improve your credit: If you stay on top of repayments, it can help improve your credit record


  • High interest rates: Lenders are likely to charge you a higher interest rate because of your poor credit history. Thus your loan will cost you more overall.

  • You're putting your home at risk: Your loan is secure against your property, so if something goes wrong and you're unable to keep up with repayments, you could lose your home.

How much can you borrow with a secured loan?

The amount you can borrow will depend on depend on your property value and income, but secured loans can be for anywhere between £1,000 and £2.5 million.

Things to know before you apply for a secured loan for bad credit

As mentioned earlier, taking out a bad credit secured loan is a serious commitment, especially considering that you're already financially vulnerable due to your poor credit history.

This is why it's important that you:

  • only borrow as much as you need

  • know how much time you need to pay it back

  • can afford the monthly payments in addition to your regular outgoings

It is also worth checking that your credit record is accurate and up to date before you look at bad credit secured loans, even if you know you have not had issues in the past.

Writing a budget, can also be a helpful exercise to know exactly how much you can afford to pay towards any new loan. This can reduce the chances of missing any payments in the future.

Here is how to improve your credit record