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Bad Credit Loans

A bad credit loan could help you get access to the funding you need, and may help boost your credit score in the long run.

Don’t let poor credit history affect your financial future. At Norton Finance, we specialise in finding the right loans for people with a low credit rating. We treat each customer and their application individually to help find the best product for your needs, because we know everyone’s circumstances are unique.
  • We search the wider market to allow us to find a loan that’s suitable for you

  • We carry out an initial soft search, which won’t affect your credit score

  • Get greater choice and flexibility on a range of unsecured or secured loans

  • Access expert and friendly customer service for help finding a loan to suit your unique circumstances

  • Repaying your loan on time could help to improve your credit score in the long term

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What are bad credit loans?

Bad credit loans are designed to ensure a poor credit history doesn’t stop you getting access to the finance you need. Not all lenders accept people with poor credit histories, so you may have fewer options to choose from – but that doesn’t mean you can’t borrow. Loans for people with poor or no credit history are typically unsecured, so pose less risk to your home or car - although bad credit secured loans are also available.

With a bad credit loan, you can access the credit you need and improve your credit score in the long run, if you make your regular repayments on time.

Borrowing with bad credit may mean the interest you pay is higher than with other types of personal loan, which should be considered when calculating your ability to meet the repayments.

What can cause bad credit?

Having a poor credit score can affect your future borrowing, so it’s important to try and find out the cause. Some of the following may apply in your situation.

What to know before you apply

Before you apply for a bad credit loan, it’s worth doing your research so you know any loan you do apply for is right for you. This can also help to simplify the process and give you the best chance of being accepted.

Income and outgoings

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 loan, so it’s worth ensuring you have a full picture of your finances before you start.

Loan security

If you’re applying for a secured loan for bad credit, a lender will need to know about your property. This can include your house, or your cars. The more equity you hold, the less risky the proposition to lenders, which could mean lower rates on your repayments.

Credit history

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 to be approved at the rate you want, but knowing what your credit report looks like can stand you in good stead.

Purpose of your loan

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.

Am I eligible for a bad credit loan?

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 a bad credit loan.

Pros and cons of a bad credit loan

It’s important to consider all the pros and cons before taking out a loan for bad credit.



Representative example

If you borrow £12,000 over four years at a Representative APR of 15.4% APR (fixed), you would pay £330.33 per month. The maximum APR is 99.1%.

Frequently asked questions

We’ve already covered the basics of bad credit rating loans and how they work, but there are other details to be aware of before sending your application.

How do bad credit loans work?

Bad credit loans are a type of borrowing designed to help people with a poor credit history. They are usually approved as a short-term measure until you can get back on track, because if you maintain your repayments, this can improve your credit score and allow you to borrow at lower interest rates in the future.

Many people who apply for bad credit loans have been turned down by their high street bank, often by an automated credit decision engine. At Norton Finance, we believe people should be given a second chance and that the past should not always dictate the future.

Can I have a loan with a CCJ?

Yes, it’s possible to apply for a loan with a CCJ. Some lenders will work with you on a repayment package that covers the debt, plus the amount you want to borrow.

Find out more about CCJs.

How much can I borrow?

Depending on the kind of loan, you can borrow from £3,000 up to £500,000.

How long are the repayment terms?

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.

What are the interest rates?

The interest rate will vary as your current circumstances and financial history are taken into consideration.

How long will it take?

You will receive an instant decision from us, and an unsecured bad credit loan could be in your bank account within 1-2 days. However, for secured bad credit loans we recommend you give one to two weeks to allow your application to be processed.

Do I need a guarantor?

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.

Applying for a bad credit loan

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 on 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.

If you want to get an early idea of a repayment schedule, use our loan calculator to adjust your desired loan amount and terms.

Can I apply for a loan with bad credit?

We help people with different financial situations to try and improve their circumstances and source a loan to match their needs. Whether you’re dealing with debt issues such as CCJs or are not deemed eligible for a loan by some lenders, we’re here to help.

For those who are retired, self-employed or on benefits, obtaining a loan can be difficult, but Norton Finance filters through hundreds of options to find a product you’re more likely to be accepted for.

What do I need to apply?

When you’re ready to start your online application with us, you should have the information below to hand:

What can I use a bad credit loan for?

A loan can be used for a wide variety of reasons including:


Home improvement loans

Replace your kitchen or add an extension. A home improvement loan could help you update and improve your house – and increase your property value.

Debt consolidation loans

Save on fees and hassle by clearing other existing debts, in favour of a single monthly repayment, with a bad credit debt consolidation loan.

Car purchase loans

Car purchase loans can be cheaper than dealership finance plans, with rates available to suit your requirements.

Business loans

Give your start-up a boost or grow your customer base. Business loans can help give you the edge over your competitors.

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