Bad Credit Loans | Loans For Bad Credit @CreditRaters.com

Bad Credit Loans

Use Credit Raters today to compare the UK’s leading bad credit loans.

Warning: Late repayment can cause serious money problems, for help and advice please go to moneyadviceservice.org.uk

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Loan Amount

£100 - £1000

Loan Term

1 - 12 Months

Interest

259.33%

APR

947%

Instalment Loan

Borrow £400 for 6 months. Total repayment: £750.78 in 6 monthly payments of £125.13. Interest p.a: 259.33% (fixed). Representative 947% APR.

Loan Amount

£500 - £15000

Loan Term

12 - 60 Months

Interest

Variable

APR

49.7%

Guarantor Loan

Borrow £4,000 over 36 months. Monthly repayment of £194.78. Total repayable is £7012.08. Interest payable is £3012.08. Fixed APR of 49.7%. Interest rate of 41% per annum. Representative APR 49.7% (fixed).

Loan Amount

£100 - £700

Loan Term

1 - 6 Months

Interest

274%

APR

1081.24%

Instalment Loan

Amount of credit: £300 for 4 months. Interest: £185.68. Interest rate: 274%pa (fixed). Four repayments of: £121.42. Total amount payable: £485.68. Representative 1081.24% APR.

Loan Amount

£1000 - £20000

Loan Term

24 - 60 Months

Interest

20.33%

APR

20.33%

Car Finance Loan

Loan amount £7,500, 60 monthly repayments £200.08 Representative APR 20.33% fixed, loan term 60 months an annual interest rate of 20.33% Total cost of credit £4505.00, total amount repayable £12005.00

Loan Amount

£500 - £25000

Loan Term

12 - 48 Months

Interest

13%

APR

27.4%

Car Finance Loan

Amount of credit £7500 repayable by 47 monthly repayments of £244.79 at a fixed annual interest rate of 13%, Representative APR 27.4%. Total cost of credit £3899.92. Total amount repayable £11899.92.

Loan Amount

£1000 - £20000

Loan Term

24 - 60 Months

Interest

33.6%

APR

33.6%

Car Finance Loan

Borrowing £1000 over 24 months with a best available rate of 33.6% (fixed) and £0.00 deposit, amount payable is £56.21 per month. The total amount payable is £1349.04*.

Loan Amount

£1000 - £50000

Loan Term

12 - 60 Months

Interest

10.87%

APR

21.8%

Car Finance Loan

Average credit score: Loan amount £5000 – 48 monthly payments £149.46 – Total cost of credit £2174.08 – total amount payable £7174.08 – representative example 21.8% APR. This is a yearly flat rate of interest of 10.87%. This is a fixed rate.

Loan Amount

£500 - £5000

Loan Term

3 - 36 Months

Interest

65%

APR

171.9%

Logbook Loan

Amount of credit £1000 repayable by 12 monthly repayments of £137.50 at a fixed annual interest rate of 65%, Representative APR 171.9%. Total cost of credit £650. Total amount repayable £1650.

Loan Amount

£50 - £1000

Loan Term

1 - 3 Months

Interest

292%

APR

1299.1%

Instalment Loan

Representative Example: Amount of credit: £300 for 81 days with one repayment of £97.20 and one repayment of £397.20. Interest: £194.40. Interest rate: 292% pa (fixed). 1299.1% APR Representative.

Loan Amount

£100 - £3600

Loan Term

3 - 12 Months

Interest

238%

APR

788%

Instalment Loan

Borrow £500 for 6 months. Annual interest rate 238% (variable). 1 instalment of £142.10 & 5 equal instalments of £142.42. Total amount to repay £854.20. Representative 788% APR

Loan Amount

£500 - £10000

Loan Term

12 - 60 Months

Interest

36.9%

APR

43.8%

Guarantor Loan

Borrowing £4,000 over 3 years at an interest rate of 36.9%p.a. (fixed), you will repay 36 monthly payments of £185.27. Interest payable £2,669.72. Total repayable £6,669.72. Representative 43.8% APR.

Loan Amount

£150 - £500

Loan Term

3 - 5 Months

Interest

160%

APR

677%

Instalment Loan

Loan amount £200 repayable over 3 months. Total amount repayable £280 in 3 payments of £93.33. Interest 160% p.a. fixed. Representative 677% APR.

Loan Amount

£500 - £10000

Loan Term

12 - 60 Months

Interest

47.8%

APR

47.8%

Guarantor Loan

Representative Example: £3000 over 3 years, representative 47.8% APR Fixed. Monthly payment £143.84. Annual interest rate 39.7%. Interest payable £2178.24. Total payable £5178.24.

Loan Amount

£250 - £50000

Loan Term

12 - 36 Months

Interest

132%

APR

450.5%

Logbook Loan

If you borrow £850 over 18 months at a flat rate of 132% per annum (fixed) with a representative 450.5% APR you will repay 17 monthly payments of £140.72 and 1 payment of £140.76, repaying £2,533.00 in total.

Loan Amount

£1000 - £10000

Loan Term

12 - 60 Months

Interest

33.3%

APR

39.9%

Guarantor Loan

Representative example: £4500 over 3 years, representative 38.9% APR fixed. Monthly payment £199.26. Annual interest rate 33.3% fixed. Interest payable £2673.36. Total repayable £7173.36.

Loan Amount

£250 - £1000

Loan Term

18 - 18 Months

Interest

205.2%

APR

989.9%

Instalment Loan

Representative example if you borrow £600 over 18 months at a flat rate of 205.2% per annum (fixed) with a representative 989.9% APR you will make 17 monthly payments of £135.93 and 1 payment of £135.99, repaying £2,446.80 in total.

Loan Amount

£100 - £750

Loan Term

1 - 5 Months

Interest

292%

APR

1255%

Instalment Loan

The Representative APR is 1297% APR so if you borrow £100 over 35 days at 292% p.a. (fixed) you will repay £28 in interest and £128 in total.

Loan Amount

£250 - £1000

Loan Term

2 - 3 Months

Interest

193.45%

APR

397%

Instalment Loan

Representative Example: Borrow: £1000 for 12 weeks. Repayment method: Three installments. Interest rate: 193.45%. Total repayment of: £1448. Representative: 397% APR.

Loan Amount

£1000 - £25000

Loan Term

12 - 60 Months

Interest

2.9%

APR

3%

Personal Loan

A loan of £10,000 over 5 years will cost you £179.25 per month at a representative 2.9% APR. The total cost after 5 years is £10,754, which includes £754.87 interest at 2.9% fixed and a £0 fee. The total amount of credit is £10,000.

Loan Amount

£100 - £800

Loan Term

0 - 1 Months

Interest

292%

APR

1281.8%

Instalment Loan

Total amount of credit £80, duration of the agreement 29 days, rate of interest 292% per annum (fixed), total amount payable (in one repayment) £98.56. Representative 1281.8% APR.

Looking For A Loan With Bad Credit?

It can be incredibly frustrating trying to source an emergency loan when you’ve got bad credit in place. Whilst trying to juggle whatever financial emergency life has thrown your way with application after application, it can be incredibly time consuming and ultimately fruitless trying to source funds from individual lenders.

At CreditRaters.com, we understand that not everyone will have the luxury of a perfect credit score, but this doesn’t mean that these customers should be unable to attract credit when they need it most.

In this guide, we’ll take a look at what might cause someone to have bad credit, the lending options that are available and what you can do to improve your credit score for future borrowing.

How Does Credit Scoring Work?

Before anything, it’s important for us to understand the sort of factors that lead to borrowers having bad credit in the first place. There are many credit reference agencies in the UK whose job is to build up an ongoing, accurate profile of each borrowers credit facilities and credit management.

Experian, Equifax and Callcredit are the three leading credit reference agencies in the UK, and they’ll use all of your credit-based information to generate a score which lenders can use as part of their loan application decisions.

Some of the most important factors that can play a part include:

  • Your total amount of credit
  • Your ability to make timely repayments
  • The number of applications you’ve made for credit
  • Bank account and overdraft management
  • Being on the electoral register
  • CCJs and defaults on previous accounts

Remember that your credit score isn’t only made up from loans. It takes into account all forms of credit including credit cards, mobile phone contracts, bank overdrafts and hire purchase agreements too. 

So How Do I Get A Loan With A Bad Credit Score?

The great news is that just because you’ve had issues with credit in the past doesn’t mean that you won’t be able to successfully apply for credit today.

At CreditRaters.com, we work with a huge panel of specialist bad credit loans lenders who take into account more than just your credit score. At the end of the day, all that each lender ultimately wants to know is that you’re able to repay the amount you borrow, both on time and without putting yourself at further financial risk.

Your credit score is one of a number of areas that they’ll consider when deciding whether or not to approve your loan application. For example, they may also take a look at your:

  • Income
  • Employment status
  • Residential status
  • Reason for borrowing

I Don’t Think I’m Eligible For An Unsecured Loan. What Other Options Are Available?

Unsecured loans always put lenders at the biggest risk since they’ve no collateral to fall back on should you be unable to repay the amount you’ve borrowed. Understandably, this makes it harder (but not impossible!) for those with bad credit to get these types of loans, however there are plenty of other options available which can help to reduce the overall lending risk.

Guarantor Loans

Guarantor loans can help to significantly reduce the risk to lenders within the bad credit sector by using someone you know with a good credit score to guarantor the loan on your behalf.

This may be a friend, family member or even a work colleague – effectively anyone who is happy that you’re able to repay the loan and can step in to make payments on your behalf should you be unable to.

What makes them even more attractive as a bad credit loan is that by making repayments on time you’ll actually improve your credit score, not your guarantor’s. This will help you to secure more traditional loans further down the line, potentially with better rates of interest and a faster underwriting process.

Logbook Loans

Logbook loans have been a hugely popular form of bad credit loans for a number of years due to their easy applications, high acceptance rates and structured repayments.

They are a form of secured loan whereby the lender will use your vehicle as collateral, taking over the ownership of the car, van or motorcycle until the outstanding balance has been cleared. Now when we talk about taking over ownership, it’s important to understand that you’ll still get to keep your vehicle for the loan’ duration. You will keep 100% access and use of the vehicle so taking on logbook loans won’t hold you back from your day to day travels.

As soon as the loan is repaid, vehicle ownership is transferred back to you however it’s important to remember that your vehicle may be at risk should you be unable to fully repay the amount borrowed.

Bad Credit Payday Loans

Payday loans have shot to prominence over the past decade, quickly becoming one of the most used loan types in the UK. As a short term borrowing solution, they’re very easy to manage since you’ll only need to make one or two repayments on your upcoming paydays.

These loans are unsecured so they won’t be as easy to get as the two listed above, but bad credit payday loans still have a very high acceptance rate compared to more traditional borrowing options in the market. They should only be used for short term financial help rather than long term borrowing due to the relatively high interest rates.

How Can I Improve My Credit Score?

If bad credit loans simply aren’t an option for you at the moment then it’s time to look at how you can increase your credit score to improve your chances of acceptance in future.

Firstly, use a credit reference agency to find out what’s keeping your score low. The vast majority of UK credit reference agencies offer free access to your score through either a completely free service or a short term free trial. Your report will tell you if you have any outstanding CCJs and accounts that are in arrears as well as providing historical information on debts that you’ve successfully settled in the past.

Most of these credit services will offer helpful advice on what you can do to change your score, however there are some basics that you can put into practice straight away.

For instance, credit builder credit cards offer low levels of credit but by paying these off each month you’ll quickly see your score increase. The same can be said of the bad credit loans and payday loans listed right here at CreditRaters.com, so the first step is to make sure that you’re paying these debts on time.

Secondly, you’ll want to list yourself on the electoral register. It may seem like a strange tip for credit, but by listing a full time residential address in this way lenders will have the added security of knowing where you’re based.

Finally, make sure that all of the marks on your credit history are legitimate. There may be debts on there that have been paid off but haven’t been updated, or there could be cases of identity fraud where someone else is taking advantage of your borrowing limits. Either way, it’s a good idea to run your eye over your full history and confirm that everything on there is accurate.

How Can I Apply For Bad Credit Loans?

Applying for bad credit loans used to mean jumping through hundred of hoops with no guarantee of even being accepted, but fortunately all of that has changed.

The first step is to get an accurate online comparison from CreditRaters.com who will take into account your personal circumstances before matching you with lenders who are best positioned to help.

Take a look through the amount of credit offered, repayment terms, interest rates and any applicable fees when making your decision to ensure that you pick up the very best possible deal. Once the initial application form is complete, you’ll receive an instant online decision telling you whether or not the lender is able to approve your for the bad credit loan.

Remember – CreditRaters.com is a trusted broker so there will be plenty of companies on offer should you be unable to secure a loan straight away.

Once you’ve been approved and are happy to proceed, it’s now simply a case of signing and returning your credit agreement to confirm the repayment schedule and amount borrowed. Funds are then transferred directly into your personal bank account, usually within 24 hours when it comes to bad credit payday loans.

So what are you waiting for? Get a fantastic deal on your next bad credit loan with CreditRaters.com by registering free of charge and with no obligation today!