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Loans for Bad Credit
Fast. Free. No impact on credit score.This won’t affect your credit score
Loans with bad credit are provided as a financial option for those who have a poor or non-existent credit history. You may also see them advertised as adverse credit loans or poor credit loans. While not every UK lender offers loans for people with bad credit, you still have options, including both unsecured and secured adverse credit loans.
Having bad credit refers to your credit score. It can be difficult to get a loan if you have bad or no credit history, as lenders see you as a risky option.
Credit scores are measured differently across the three major UK credit reporting agencies, so it can be worthwhile to get more than one credit check. It is generally a good idea to check for any mistakes to your credit report and take steps to rectify them. Bad, or poor credit is defined by the three agencies:
You may have bad credit for a number of reasons. Missing repayments on previous credit, being declared bankrupt, or having a CCJ will all have a negative impact on your credit score.
It’s also possible to struggle with getting the best deals if you have no credit history at all. This is often the case if you’ve never taken out credit such as a loan, credit card, or mortgage before.
Depending on your finances, your credit score will change over time - and while getting a secured loan with poor credit isn't impossible, taking steps to improve your credit score will benefit you in the long run. If you have a poor credit rating, there are a few simple ways to help you improve it over time:
These are just some of the ways to help get your credit score back on track. Depending on your financial situation, you may see positive change within a few months or a few years.
When applying for a secured loan with bad credit history, it might be necessary to state what you will be using the loan for. While there are many reasons you might need a loan, it’s important to give the prospective lender this information to help with the application process. This is because some lenders will not allow loans for certain uses.
There are many reasons you might be applying for a secured loan with poor credit, for example:
Save on fees and hassle by clearing other existing debts, in favour of a single monthly repayment, with a poor credit debt consolidation loan.
A home improvement loan could help you update and improve your house – and increase your property value.
You might find yourself with a large, unexpected bill, or costs. At times like these, a loan could be the quickest way to access the finances you need.
A car loan with bad credit can be cheaper than dealership finance plans, with rates available to suit your requirements.
Always make sure the purpose of the loan is affordable for you, and that repayments will fit within your monthly budget.
The process of applying for a bad credit loan is usually straightforward, but it helps to be well prepared. Having your financial details ready such as your income, regular outgoings, and any existing credit commitments, can make the application smoother and give lenders the information they need to assess your case.
Preparation also helps you understand what you can realistically afford to borrow and repay. By knowing your financial position upfront, you can compare lenders more easily, find the most suitable loan option, and avoid applying for products that may not match your circumstances.
Before applying for a bad credit loan, it’s important to understand both the benefits and the risks. These loans can help when other lenders say no, but you need to be sure the repayments are affordable for you. Bad credit loans can provide funds when others won’t lend. But you should make sure you can keep up with repayments before applying.
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Lenders will ask about your income and expenses, as well as any debts you may have. This is so they can determine whether you can afford the monthly repayments on a low credit score loan, so it’s worth ensuring you have a full picture of your finances before you start.
If you’re applying for a secured loan with poor credit, a lender will need to know about your property. This can include your house or your car. The mores risky the proposition to lenders, which could mean lower rates on your repayments. If you’re applying for small loans for bad credit, you may find that a secured loan is the best option for more favourable rates. Remember that missing loan repayments could lead to your home or car being repossessed.
Lenders will usually want to see your credit report to get an idea of your current situation. It doesn’t mean you’ll need a perfect credit history for approval at the rate you want, but knowing what is on your credit report ensures you are prepared for the application.
You should be able to provide a clear reason for your application. Some lenders may be specific on purposes you can and can’t borrow the money for, so it helps to have your answer set out before you apply.
We always do our best to search for a loan that works for you, even if you don’t have a perfect credit history. But your unique financial situation can tell lenders whether or not you are eligible. Lenders will assess your credit history and your repayment history before deciding whether to approve your loan application.
Take a look at our article on loan eligibility for further advice on applying for your loan.
Not every situation requires the same kind of loan. There are two types of loans available, each with unique features to suit different circumstances.
A secured loan is where you borrow money secured against an asset –usually your home. If you don’t keep up with your repayments, you may lose the asset you used to secure the loan.
With an unsecured loan, sometimes known as a personal loan, the money you can borrow is determined by your credit score. It won’t be secured to any of your assets in the way a secured loan is.
No matter your reasons for needing a bad credit loan, Norton Finance will work with you to find a solution that meets your needs. If you’re applying for a secured loan with bad credit and you’re receiving benefits, have a CCJ or are searching for a joint application, we can help.
Simply fill in an application online, and our team will get to work searching our wide network of lenders and plans to provide you with a range of flexible options. Here, you will need to provide your residential status and the amount you’re looking to borrow as well as the borrowing terms. We also ask that you provide the purpose for your loan, so we can find the best options for your circumstances.
If you want to get an early idea of a repayment schedule, use our loan calculator to adjust your desired loan amount and terms.
When you’re ready to start your online application with us, you should have the information below to hand:
We’ve already covered the basics of personal loans with a bad credit rating and how they work, but there are other details to be aware of before sending your application.
Yes, it’s possible to apply for a loan with a CCJ. You may be issued with these court orders if you haven’t kept up with repayments on a previous loan. Some lenders will work with you on a repayment package that covers the debt, plus the amount you want to borrow.
With a secured bad credit loan, you can borrow from £3,000 up to £500,000. An unsecured bad credit personal loan will allow you to borrow between £3,000 up to £25,000.
Repayments on an unsecured loan can be spread over a period of between one and seven years, to ensure you can comfortably meet them. A secured loan can be repaid over terms ranging from 3 to 30 years.
If you need to access finances quickly and require an urgent loan for bad credit, we may be able to help you if it’s not a secured loan. We can offer loans within two weeks for customers in financial difficulties, whether it’s a broken boiler or urgent dental treatment. An urgent loan may have high interest rates, but we can help you find the best solution for your situation.
You will receive an instant decision from us, and an unsecured poor credit loan could be in your bank account within 1-2 days. However, for secured adverse credit loans we recommend you give one to two weeks to allow your application to be processed.
No, you will not need a guarantor. Our bad credit loans criteria is based on the loan applicant’s details only, so you can apply independently without asking a friend or family member for help.