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Bad Credit Loans

A higher interest form of borrowing that could help improve your credit score provided you keep up with repayments.

A bad credit loan is the name given to a loan designed for borrowers with a poor credit history. They normally come with a higher rate of interest because the lender will see the borrower as a higher risk. However, they can also help you improve your credit in the long run, as long as you keep up with your agreed repayment schedule.
  • Bad credit loans can be unsecured or secured loans

  • Lenders see it as more of a risk, so the APR will be higher than other loans

  • Repaying your loan on time may help to improve your credit score

  • You should make sure you can afford the repayments before agreeing to the loan

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What are bad credit loans?

Bad credit loans are designed to help customers with a poor credit history who are having difficulty when it comes to applying and being accepted for a loan. Loans for people with bad credit are typically unsecured, so pose less risk to your home or car. Bad credit loans can be secured to your property, which could result in a lower interest rate, so it’s always best to check the details first.

The APR you pay may be higher than with typical loans, which should be considered when calculating your ability to meet the repayments.

Can I get a bad credit loan?

While many people with poor credit scores are eligible, it all comes down to your unique financial situation. Lenders will assess your credit history and potential to miss repayments before deciding whether to approve your loan application.

Why do I have bad credit?

Finding out you have a poor credit score can affect future borrowing, so it’s important to try and find out why it’s happened.

If you have a bad credit rating, it could be because you have previously missed payments on an existing loan. If this applies to your current situation, it’s important to get in touch with the lender to discuss your repayments going forward.

You may also have a poor credit score if you have a CCJ (County Court Judgement) against your name. This could happen if you’ve defaulted on a loan or credit agreement in the last six years.

Bad credit needn’t be evidence of adverse borrowing either. You may have a low score if you have no history of borrowing, as it’s harder for lenders to assess how reliable you are as a borrower. The good news is a credit score can be improved.

Pros and cons of a bad credit loan

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



We will then be in touch to find out more information about your circumstances. We recommend you have the details of any other debts you may have, to ensure our team has everything they need to find you a loan.


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?

They are a type of unsecured borrowing designed to help people with a poor credit history. Many lenders offer this type of loan to those who have been denied elsewhere or can’t find a loan type that suits their specific financial circumstances.

Meeting each repayment and paying back the loan under the agreed terms can improve your credit score over time. This will gradually raise your prospects when it comes to borrowing and making your next big financial decision.

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.

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.

Are there any loan fees?

There may be a broker fee of up to 12.5% of the amount you borrow. This is capped at £3,995 for secured bad credit loans but does not apply to unsecured loans.

Applying for a bad credit loan

No matter your reasons for needing a bad credit loan, Norton Finance may be able to find a solution for you. 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.

Am I eligible?

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:

We will then be in touch to find out more information about your circumstances and recommend you have the details of any other debts you may have, to ensure our team has everything it needs to find you a loan.

What can I use a bad credit loan for?

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


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