Bad Credit Loans

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, 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, 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, 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 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 – 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 by registering free of charge and with no obligation today!