Bad Credit Loans

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. These loans are typically unsecured, so pose less risk to your home or car, but bear in mind that the APR you pay may be higher. 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.

Can I get a bad credit loan?

This all depends on your current situation. Lenders will assess your eligibility for a loan before deciding whether or not to approve your application. There are a number of reasons why you may have bad credit, and not be approved by most lenders.

Why do I have bad credit?

Finding out you have a poor credit score can affect future borrowing, so it’s important to look into why it has happened.

You may have missed payments on an existing loan, in which case it’s important to get in touch with the lender to discuss your situation.

You may also have a poor credit score if you have a CCJ (County Court Judgement) against your name for defaulting on a loan or credit agreement in the last six years.

A poor credit score needn’t be evidence of adverse borrowing either. It may be the case that you 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

Pros of a bad credit loan

• It can be used to improve your credit score, provided you keep up with repayments
• If you’re using it to consolidate debt, it’s easier and more affordable to pay back at a single rate, however the total amount repayable is likely to be higher.
• Being accepted can be a great help to your finances if lenders have turned you down elsewhere.

Cons of a bad credit loan

• An unsecured bad credit loan will probably have a higher rate of interest and be more costly over time as a result
• Failing to keep up with repayments on a secured bad credit loan may put your asset at risk
• You must be sure you can afford the repayments before you consider accepting a lender’s terms.

Commonly asked questions about bad credit loans

We’ve answered some of the most frequently asked questions around unsecured loans, how they work, and what to consider before applying.

How do bad credit loans work?

Bad credit loans are a type of unsecured loan designed to help people with a poor credit history. Many lenders offer this type of loan, so you won’t have to settle on one that doesn’t suit your own circumstances.

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

Can I have a loan with a CCJ?

Yes, it is possible to secure a loan - even with a CCJ. Some lenders will work with you on a repayment package that covers the debt, plus the amount you want to borrow.

Bad credit loan details

• 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.
• 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, capped at £3,995 for secured bad credit loans, but this does not apply to unsecured loans.

Applying for a bad credit loan

No matter what your reasons are for needing a bad credit loan, Norton Finance may be able to find a solution for you, regardless of if you’re on benefits, have a CCJ or are searching for a joint application. 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 for a bad credit loan?

We help people from all walks of life to 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 for a bad credit loan?

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

• Name and address
• Employment status
• Details of your income

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.