When you have a poor credit score, it can get in the way of doing many things. But, sometimes, you need to be able to borrow money to improve your financial situation. Your credit history may be bad, but perhaps now you’re in a more stable financial position. Unfortunately, it can take a lot longer to rehabilitate your credit score than it does to tank it.
Fortunately, there are loan options for people with bad credit. Many lenders are willing to give people with bad credit a chance. While the loan terms might not be as good as if you had a better credit score, it can still be very helpful if you need to borrow some money.
Take a look at this list of top 10 best lenders for bad credit loans in the UK to find the right lender for you.
Amigo Loans allows you to borrow with a guarantor, which makes it easier to access the money you need. Not only do they offer loans for people with bad credit, but you can also access them if you’re self-employed. Unlike some other guarantor loans, the guarantor doesn’t need to be a homeowner. However, they do have to have a UK address. They should also be aged 18-75, have a strong credit score and be able to afford to cover your payments if you can’t pay. Of course, they should also be someone you have a trusting relationship with, who is happy to help you repay your loan if you need it.
With Amigo Loans, you can borrow up to £10,000 and have your application approved within 24 hours. You can borrow over up to 60 months, which is five years, at representative 49.9% APR.
UK Credit also offers the option of using a guarantor who isn’t a homeowner. They offer a no-fee loan option, allowing you to borrow between £1,000 and £6,000 using a guarantor who is a tenant. If your guarantor is a homeowner, you can borrow up to £10,000. UK Credit says they always consider people with poor credit, CCJs and Defaults, and they offer fixed-rate interest during your loan term.
You can borrow over up to 5 years, at 59.9% APR if your guarantor is a tenant and 39.9% APR if your guarantor is a homeowner. They will always make sure that you can afford to repay your loan so that they only lend responsibly. There are no upfront fees or fees applied to your loan. You can speak to one of their advisors about the process, and use their online calculator to work out how much you could borrow.
Some homeowners can have poor credit too. You might have had good credit once upon a time when you first applied for your mortgage. However, a lot can happen over the years, and your credit score might be affected. Even if you’re still handling your mortgage payments or have paid off your mortgage, you might be reluctant about using your home for a secured loan. Fortunately, lenders like Progressive Money have unsecured loans for homeowners. You can borrow up to £15,000 over as long as ten years. They have loans for people with bad credit and those who don’t have a guarantor. You can be employed or self-employed, but you must be aged 18-70. They can pay in 24 hours if your application is approved.
JustUs has options for homeowners and tenants, bridging loans and even buy-to-let mortgages. JustUs is a peer-to-peer lending system, meaning that your loan is funded by other people who lend you the money as an investment. If you’re a homeowner, you can choose an unsecured loan of up to £15,000 with poor credit and pay it back over as long as five years. You can also get the same with a guarantor loan. Your guarantor needs to be a homeowner and must be at least 23 years old (up to 75) and have a monthly income of at least £1,000 a month. A guarantor loan could be at as little as representative 33.9% APR, while an unsecured loan is offered at higher rates.
1st Stop offers loans for homeowners, as well as personal loans. Their homeowner loans are unsecured, so you won’t be putting your property at risk. You can borrow between £5,000 and £50,000, although there are fees. You can choose to pay the fees upfront, but you can also pay them off with the loan. The introducer and acceptance fees together could cost you an extra few thousand on top of your loan, so be careful when you’re looking at your options. However, at a rate of 23.81% APRC, you could still get a better deal than elsewhere.
If you’re looking at a personal loan, you can borrow between £2,000 and £15,000. With a fixed rate of 24.8%, you could get a good deal. There are some criteria to be met, such as a minimum annual income of £15,000, and you must not be bankrupt, under a current IVA or on a debt management arrangement.
AvantCredit considers applicants with a range of credit histories. Although the approval rate for people with good credit scores is higher, they’re prepared to consider anyone. They will take other factors into account when determining your eligibility. All they ask is that you’re 18 years old or older, and have a personal bank account with deposits that reflect your income. There is an administration fee, which you will pay at the same time as your loan. You can get a decision on the same day that you apply.
Their rates and terms are flexible, depending on your circumstances, and their maximum loan amount is £25,000. But keep in mind that you will likely be able to borrow less and get less favourable rates if you have a poor credit score, as with any lender.
Like many other lenders, Bamboo offers unsecured loans and guarantor loans. However, if you don’t have a great credit score, their guarantor loans are best for you. Their guarantor loans allow you to borrow between £1,000 and £8,000, and your guarantor doesn’t need to be a homeowner. They can pay on the same day if your application is completed and approved before 3 pm. Your guarantor can’t be a current customer or guarantor with Bamboo, and they should be aged 21-72 at the start of the loan.
You can pay back your loan over as long as five years, representative 49.7% APR. Bamboo even has a handy guide for finding a guarantor, in case you’re not sure about who you can ask.
Everyday Loans are specifically designed for people with bad credit. However, it’s important to note that their rates could be higher than many other lenders. Your rate could be as low as 24.2% APR, but it could be much higher. But you can borrow up to £15,000, which is more than some lenders will allow people with bad credit to borrow. You can repay your loan over 18 months to 60 months (five years) and get an initial decision in minutes. After getting initial approval, you go into your local branch to complete the application. This is great for anyone who would rather deal with a person than do everything online or over the phone. Before making an application, you might want to check where your nearest branch is.
118 118 Money
118 are a pretty recognisable lender, thanks to their adverts. You can borrow between £1,000 and £5,000 for up to two years. This means you’re likely to repay less money and interest, compared to a loan that you might drag out for five years. You’ll have fixed monthly payments, and you can get money in your account with 24 hours of applying. Rates are from 35.9% APR. They have no guarantor loans available, which you can still apply for even if your credit score isn’t squeaky clean. You can use their QuickCheck on their website to check if you can get a loan without affecting your credit score.
1Plus1 guarantor loans allow you to borrow up to £10,000. Your guarantor doesn’t need to be a homeowner, although tenants must have exceptional credit files. While you can’t use a partner or spouse who lives with you as a guarantor, you can use your parents, even if you live with them. With 1Plus1, you can pay your loan back early at any time without paying any extra fees. There are no application fees. 1Plus1 also offers top-up loans for borrowers who might want to borrow a bit more. If you can keep up your repayments and your outstanding balance is less than £4,500, you might be eligible for a top-up loan.
Before you take out a loan, make sure you choose a responsible lender. They should have a calculator to help make it clear how much you’re going to pay back.