Frequently asked questions
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.
Can I have a loan with a CCJ (County Court Judgement)?
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.
Find out what a CCJ is.
How much can I 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.
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 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.
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.
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.
- 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 (though the total amount payable is likely to be higher).
- Being accepted can be a great help to your finances if other lenders have previously declined your application.
- An unsecured loan for poor credit will likely have a higher rate of interest. This can mean repayments are higher than other loan products over time.
- Missing a payment on any loan could cause your credit score to reduce.
- Falling behind on repayments on a secured bad credit loan may put your property at risk or cause your credit score to fall further.