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Can You Get a Bad Credit Loan in the UK?

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When you search for a loan with us, a soft search will be carried out on your credit file to match you with the most suitable offer. All lenders on our panel are authorised by the FCA and will conduct a hard credit check if you proceed to take out a loan with them.

Representative Example: £400 loan repayable over 39 weeks at £18.96 per week, Rate of interest 113.46% p.a fixed; Representative 498.78% APR, Total amount payable is £739.44.

We're a fully regulated and authorised credit broker and not a lender.

We work with over 50 lenders to help you find the best loan possible.
We never charge you for our service.

Knowing how to get a loan with bad credit in the UK can help you out of a tough spot. You might find yourself with bad credit for several reasons. It could be because of missed repayments, failed credit applications, having borrowed in the past and not been able to make timely payments, and so on.

When we think about bad credit loans we generally associate them with the USA. Loans for bad credit are slightly trickier to find in the UK. Getting accepted for a loan with poor credit in the UK can be difficult and credit history is reviewed thoroughly. If you have found yourself in need of a bad credit loan, fear not. There is still light at the end of the tunnel. Yes, it's going to be a lot harder to find loans for bad credit but there is still hope.

There are companies, like Loanza, who specialise in helping you find loans for bad credit. We work with several reputable lenders who are regulated by the financial conduct authority and may still be able to help you get a loan, despite poor credit or even very bad credit.

What Exactly is Bad Credit?

Each one of us has a credit score also known as a credit rating. Whenever we make a credit application, our credit score is reviewed. Credit scores are a number pulled together and decided by our past credit behaviour. It demonstrates to lenders how we behave when we borrow money.

Our score is compiled by separate credit reference agencies who inform your lender about your history with credit - for example, how much you have borrowed and how quickly you have paid it back. It also demonstrates outstanding debt, and so on. Lenders will then assess how suitable a borrower you are for whichever product you have applied for.

Bad credit is a financial pitfall that many people will face at one point or another, often as the result of common financial missteps or from not having much of financial history to assess. If you have bad credit it's much harder to borrow money because it can be hard to know if you will be able to pay it back.

Will It Be Easy to Get a Bad Credit Loan?

The simple answer is no, it will not be as easy to get a loan with a poor credit score as it would be for people with a good credit history. Your options will be limited and higher rates of interest will apply. It's not necessarily going to be very difficult to get a loan, the process will just be different due to your bad credit history. If you have faults in your credit history, a low credit score, poor credit, very bad credit Loanza can help find the best loans for you.

What Happens When You Need a Bad Credit Loan in the UK?

Without sugar-coating the situation, regular loans against bad credit histories are usually rejected.

Your credit report is checked by banks and financial institutions responsible for using loans. The interest rates and length of loans are often calculated based on your credit score. If you have a bad credit score you are considered a risk to lend to by traditional lenders who may be unwilling to provide you with loans for this reason. It is advisable to assess your financial situation before applying for a loan as applying for a loan to then have it rejected can further damage your credit score.

If you find yourself in this situation another option would be to seek out bad credit loans. Bad credit loans are designed for people with poor credit ratings in mind and your application for these types of loans is more likely to be accepted. With bad credit loans, the approval is based on affordability and not your credit history or credit score but they usually come with higher interest rates.

That is why you should apply for bad credit loans only when absolutely necessary. The following situations are examples of the circumstances that may require emergency funding:

  • In case of unexpected health or personal emergencies.
  • There is absolutely no other way to pay off existing debts.
  • If you have defaulted on credit card payments.
  • Emergency Home Repairs
  • Emergency Car Repairs
  • No other funding options available
  • Unable to access traditional loans due to credit rating or poor credit score

Where Can I Get a Bad Credit Loan?

The best way to secure loans for bad credit is to get a loan from one of the direct lenders available online! Securing this type of bad credit loan is less hassle than opting for a personal loan from a bank or financial institution and your application is more likely to be successful. You simply have to find a loan direct lender willing to overlook the fact that you have bad credit and who specialise in bad credit loans.

Online direct lenders will allow you to borrow despite your poor credit and instead offer loans based on affordability. You need to prove that you will be able to pay the loan you get back on time by providing details of your income and expenditure. The lender will need to perform a credit check to let them review your credit history.

Your best option is to use broker sites that work with lenders who offer these bad credit loans - like Loanza. We have a wide network of reputable lenders who offer bad credit loans in the UK and we can quickly find the best loan for you at the best interest rates available. All of the lenders in Loanza's network are authorised and regulated.

Another huge advantage of online paperwork is that the application is processed faster.

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Can I Get a Bad Credit Loan With No Credit Check?

Unfortunately not. It is not possible to get a loan in the UK without the appropriate credit check. This applies to any type of loan; personal loan, secured loan, credit card, overdraft, or otherwise. Lenders need to look at your credit history and find out your credit score/credit rating for many reasons. They need to work out who you are and how you spend to protect themselves and have some guarantee that they will get their money back. Without doing so, lenders have no idea what kind of borrower you are. For the lender, looking at your credit file gives confidence they’ll get all their money back on time, in full, and without hassle when they grant you a bad credit loan.

Credit checks are mandatory. They also protect you by helping to prevent unmanageable lending. If lenders kept giving you money without any regard for your financial situation it could quickly lead to an unhealthy spiral of debt.

If a lender offers you any form of a loan (even a bad credit loan) without a credit check you must avoid them, they are likely to be operating outside the financial conduct authority and illegally. Trust us when we say it is in your best interest to have your credit history reviewed, remember the loans you are applying for are designed with bad credit in mind anyway!

How Do I Apply To Get A Bad Credit Loan?

To apply online with a loan through Loanza you simply enter a few details in our two minutes application. Loanza then quickly searches through our trusted lenders and loans to find the best option for you. You will then be redirected to the lender's website to complete their online application. The loans online application process does vary as each direct lender will have its own specific loan application. Please make sure that you review the fine print and detail and make sure that you are happy with the terms before signing. They will also be the ones confirming how quickly you get your cash so check that too! Most of our lenders promise the following!

How Quickly Can You Get A Bad Credit Loan?

As we just mentioned, the application process is quick and easy. You just need to provide information like personal details, a valid physical address proving you are a resident in the UK, details about current employment, expenditure, etc.

Once you submit the application, the amount of money is checked against different lenders in the broker's database. If the information is correct and a lender finds it likely that they'll give you a loan you will be taken to their website to finalise your request. This is where you give permission to the lender to review your credit history. Once the lender has approved the loan, cash can be transferred to your bank account in as little as an hour. Rest assured, almost everyone gets through this stage.

On some occasions, it may take a little longer for your credit history, or other parts of your loan application to be reviewed. This does not mean the application is being denied because of your bad credit, they may simply need to request further information regarding your credit history or personal details.

At Loanza, we aim to make it convenient for you by searching thousands of loans to connect you with your best fit lender based upon your personal loan requirements.

How Can You Use the Money?

Once you get the money in your account, you can use it for anything you wish to – there are no conditions on the usage of money. However, bad credit loans should not be used for frivolous spending! Only take a loan if you really need it.

Taking out this type of loan will show on your credit history and may impact your credit rating. Poor credit loans could look unfavourable to future loans and impact bad credit further, especially if you miss payments. Loans cost more money over time due to interest paid and any other applicable fees. You also risk extra fees due to late payments.

Are Bad Credit Loans The Same As Payday Loans?

Many bad credit loans are payday loans, or similar to payday loans. Historically payday loans had a bad reputation for trapping people in a cycle of debt. These days they are much more tightly regulated and safer to use. Again they should only be taken out if really necessary.

Let's clarify quickly . . .

Payday loans are short term cash loans. In most cases, you would apply for payday loans online and have the money in your bank account that same day. The money comes from companies commonly referred to as 'direct lenders'. When you pay back your payday loans they get some extra money back in interest and that's how they earn their money. It's pretty simple. Payday loans have been around for a long time, to begin with, the money would be paid back in a lump sum (with the interest) on your next payday, hence the name. These days the loan terms you can get access to are much more flexible, the amounts you can borrow are higher and you can pay back in instalments over as long as 18 months. Payday loans in some cases are more like short terms loans you would get from the bank but easier to obtain with a poor credit score.

Need a Bad Credit Loan UK?

We can connect you to one of our high acceptance lenders in minutes, regardless of your credit score.

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What Is the Interest Rate?

The interest rate could vary depending on your credit history and the lender. You can find out about your repayments and interest rate while completing your application.

If there is any aspect of the process you don’t comprehend, please ask the lender. Remember, before signing your agreement, there is no obligation. If you don't like the terms offered to you, you can just not accept them. Don't sign up for a bad credit loan unless you are 100% sure it's the best decision for you.

How Do You Repay the Loan?

The repayment date is clearly specified in the loan agreement, so the whole amount (loan plus interest), has to be paid off by then. If you need an extension of the time as you are unable to pay off the amount, talk to the lender, explain the problem, and move forward accordingly. You can choose to pay off as much as you can on the repayment date even if it isn’t possible to pay the full amount. This helps keep the interest rates down. An extension might cost you additional fees though.

How Do I Know Which Loan To Choose?

Whatever life emergency has left you in need of a fast loan should be your main focus at the moment. Unfortunately, when you start looking at loans it can become a bit of a minefield. It's a bit of a nightmare, isn't it? There are hundreds if not thousands of online loans out there. They all promise big things but can they really deliver? More importantly, are they safe?

At Loanza we are here to help, with our expert knowledge. We proudly work with all the best direct lending companies in the UK and we can help maximize your chances of getting the loan you need, quickly and at the best interest rates available.

Many lenders don’t require great credit and some will offer loans to you even if you have poor credit. They’ll still have other eligibility criteria you need to meet to be considered – primarily they’ll be interested in your ability to repay the debt.

How Does Loanza Work?

Apply to Loanza within two minutes. We will search for the best loan available to you at the best rates available. You will be redirected to the lender to apply, review your loan terms, sign your agreement. The loan can be deposited the same day if approved. Please make sure that you read the fine print before submitting your application. The wonder of an online loan with Loanza is that the money can be in your bank account on the same business day, in a lot of cases you will get the money within less than an hour!

How Much Does It Cost?

Nothing, Loanza's service is 100% free to use. We can find you the ideal same day loan completely free of charge. Be wary if you choose to use another service provider as many of them do charge an extra fee on top!

Please Remember . . .

Payday loans are designed for emergencies such as;

  • Unexpected repairs or emergencies
  • Paying off medical bills
  • Unavoidable financial needs

We recommend against the use of short-term or payday loans to finance luxury items.

Conclusion

Having bad credit doesn’t automatically disqualify you from getting a loan. There are options for getting loans with bad credit in the UK, as we’ve outlined them in this article.

Before taking out any bad credit loans, doing your research can help you decide which one is best for your situation.

With Loanza, you can feel in safe hands - but make sure you check your loan terms thoroughly with the lender we connect you with before you sign anything.

Need a Bad Credit Loan UK?

We can connect you to one of our high acceptance lenders in minutes, regardless of your credit score.

Apply Now