David Allan

Expertly compared by David Allan

Products Updated May 9, 2018

Bad Credit Unsecured Loans

We have an approved panel of unsecured and guarantor lenders who can offer loans to people who have a history of bad or adverse credit. If you have a low credit score, had difficulties or been refused a loan in the past our approved lenders can help.

This calculator will give you an idea of costs. The exact amount and APR payable will be provided from the lender subject to credit and affordability checks.

Your monthly payment will be:

£136.90

Interest on this loan will be:

£714

Annual Percentage Rate (APR):

3.7%

Total repaid will be:

£8,214

9 providers expertly compared:

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All credit types
Rated 4.9/ 5

Norton Finance Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£500 - £35,000

Representative APR
3.1%

Loan Term
2 - 5 years

Loan Type
Personal Loan Broker

Status
Homeowners & Tenants

Norton Finance are a personal loans broker who search their panel of lenders to find you the best deal possible. They will find you the cheapest loan that matches your credit rating and circumstances. Their service is free of charge and will not effect your credit rating.

Representative Example

9 providers expertly compared:

Available via broker only
All credit types
Rated 4.4/ 5

1st Stop Personal Loans

Loan Amount
£2,000 - £15,000

Representative APR
18.2%

Loan Term
2 - 6 years

Loan Type
Poor Credit Lender

Status
Homeowners & Tenants

1st Stop Personal Loans offer unsecured personal loans from £2,000 to £15,000. Whether you’re looking to buy a new car, a new kitchen or thinking of any type of major purchase they can help secure the funding you need.

Representative Example

9 providers expertly compared:

Available via broker only
All credit types
Rated 4.6/ 5

Evolution Money

Loan Amount
£1,000 - £15,000

Representative APR
26.82%

Loan Term
1 - 5 years

Loan Type
Personal Loan

Status
Homeowners Only

Evolution Money provide loans to homeowners who are looking to borrow a maximum of £15,000 over 1 - 5 years. Loans can be used for any legal purpose such as home improvements, debt consolidation, a wedding or to buy a new car.

Representative Example

9 providers expertly compared:

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Poor Credit
Rated 5/ 5

Avant Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £20,000

Representative APR
42.5%

Loan Term
1 - 5 years

Loan Type
Poor Credit Lender

Status
Homeowners & Tenants

AvantCredit offers online unsecured personal loans of £1000 to £20,000 from 12 - 60 months with fixed monthly payments. AvantCredit understands that people have a less than perfect credit history and a guarantor is not required and you don't need to be a homeowner.

9 providers expertly compared:

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All credit types
Rated 5.0/ 5

CarFinance247 Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £250,000

Representative APR
6.9%

Loan Term
1 - 7 years

Loan Type
Vehicle Finance Broker

Status
Homeowners & Tenants

Finance for cars, motorbikes, vans and motorhomes. We make the process hassle-free & provide the customers with a helping hand throughout. Our aim is to get the best possible finance deal, whilst providing an efficient service of the highest quality.

Representative Example

9 providers expertly compared:

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Poor Credit
Rated 5/ 5

Uk Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £10,000

Representative APR
39.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

Trusted, simple guarantor loans from £1,000 to £10,000. With the help of a friend or relative to guarantee your loan UK Credit could get you the cash you need.

Representative Example

9 providers expertly compared:

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All credit types
Rated 5/ 5

Trust Two Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£500 - £10,000

Representative APR
43.8%%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

With Trust Two you could borrow up to £10,000, in your own name, by asking a relative or friend to guarantee that you'll repay it. Apply online and, once you and your Guarantor are approved, on average you'll have the money within 3 days.

Representative Example

9 providers expertly compared:

Available via broker only
All credit types
Rated 4.6/ 5

Likely Loans

Loan Amount
£1,000 - £5,000

Representative APR
59.9%%

Loan Term
1 - 5 years

Loan Type
Poor Credit Lender

Status
Homeowners & Tenants

Likely Loans helps customers get the loan they require even if they have bad credit or a low credit score. Loans can be arranged quickly from £500 - £5000 over 1-5 years. There are no fees or extra charges for early repayment.

Representative Example

9 providers expertly compared:

Learn More
Poor Credit
Rated 4/ 5

Everyday Loans Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £15,000

Representative APR
93.6%

Loan Term
2 - 5 years

Loan Type
Poor Credit Lender

Status
Homeowners & Tenants

With everyday loans, you're more than just your credit score. Here at everyday we look at your credit future, not just your credit history. As such even if you have bad credit now or you've had a poor credit score in the past, we may be able to help.

Representative Example

Is it possible to get an unsecured loan if I have bad credit?

What are your loan options if you have a poor credit history?

What are your loan options if you have a poor credit history?

It is a well known fact that it is much harder to get an unsecured loan if you have bad credit. However, despite the myth that it is impossible, there are in fact some options available to you if you are looking for an unsecured loan and you currently have a bad credit rating.

What defines a poor credit rating?

There are numerous reasons why someone might end up with a poor credit rating that then means they are unable to get a mainstream unsecured loan. This could range from having problems with paying off credit card bills and making mortgage payments on time, to having no credit history because you have never had a loan. Unfortunately saving to buy something outright does not give you any sort of credit when it comes to lenders assessing you for a loan.

Specialist loans for bad credit applicants

If you have a bad credit rating then you are not just going to be able to walk into any lender and request a bad credit loan. Instead there are a specialist range of products available for people with a bad credit rating or low credit score that include unsecured loans, guarantor loans and also adverse credit cards. This type of credit demand higher rates of interest due to the increased risk to the lender.

What are the advantages and disadvantages?

Bad credit loans are more expensive with high APR rates

Bad credit loans are more expensive with high APR rates

Perhaps the biggest advantage of a bad credit lender is that you are actually able to borrow the money you need, which you would otherwise not be able to do as an unsecured loan, although there may be secured loan options that are available to you if you are a homeowner. Taking out this type of loan could allow you to consolidate your debts and make a single, affordable, monthly repayment. A knock-on effect of this is that by only having one repayment to make and making it every month, you will not only be paying off your debt, you will also be repairing your credit score and gradually improving it.

The biggest disadvantage of this type of loan is that you will find the interest rates are much higher than mainstream loans because of the higher risk you represent to lenders, therefore they are keen to recoup their costs as quickly as possible through interest repayments.

How to choose the right loan

As there are a number of options available to you it is in your best interests to make sure you get plenty of advice about the products that are potentially available to you by consulting experts. A specialist bad credit loan broker is a good place to start to ensure you have all of the secured loan option details, and they will also be able to provide you with unsecured loan options as well.

 

FAQ's

I have a bad credit, do I need a credit check to get a loan?

Yes. However, any history of adverse or bad credit will be taken into consideration by the lender. The lenders on our panel are used to dealing with customers will a low credit score.

I have settled CCJ's can I still get a loan?

Yes. The lenders on our panel accept past and settled CCJ's on credit file.

I am a discharged bankrupt, will this effect my loan?

Being a discharged bankrupt may limit the amount of lenders that are open to you. However the lenders on our adverse credit panel will be happy to consider you application. They will consider your credit record as a whole.

I have missed loan payments in the past, how will this effect my chances of getting a loan?

Missed loan payments will limit the amount of lenders who will be willing to accept your loan application. However, the lenders on our adverse credit panel will still consider your application.

Do I need to show proof of income to get a loan?

Yes. You will need to show adequate proof of income. This may be in the form of payslips if you are employed, or SA 302 forms if you are self employed either as a sole trader or company director.

How much will I be able to borrow?

Most unsecured loans have a maximum lending limit of £25,000. If you are looking for a larger loan then you may wish to consider a secured loan or homeowner loan as they are also know as. A secured loan will require security such as your home in order to take out the loan.

Will taking out a loan help build my credit rating.

If you make your loan repayments on time each and every month then yes this will positively effect your credit rating and increase your credit score.

Can I get a loan while self employed?

Yes. Being self employed is not a problem as long as you can show proof of income from your business as either a sole trader or company director. Many lenders will request to see SA302 documents from HMRC which show your income for the financial year. You may also be asked to provide business accounts or verification from your accountant.

Can I get a loan from a direct lender?

Yes. Our adverse credit panel consists of both direct lenders and brokers. If you are unsure of who may be the most suitable direct lender, then we recommend you use the services of a broker who will be able to assess your application and place your application successfully with a lender.

I have defaulted on some past loan payments can I still get a loan?

Yes. There are a number of lenders who will consider your application if you have missed previous loan payments or even have CCJ's on your credit file.

We are independently reviewed by our verified customers and web users:
Rating: 4.6 / 5 with 27 votes

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