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Key Terms and Conditions For Bad Credit Loans
7 Sep 2018

Key Terms and Conditions For Bad Credit Loans

There comes a time when many of us want or need to borrow money. Perhaps you’ve encountered unexpected costs, or you’re keen to make home improvements, for example. If you haven’t got enough cash, taking out a loan is an option, but what happens if you have bad credit? Bad credit loans are financial products that are designed to benefit those without a perfect credit record. If you have a low credit score, they may be an option for you, but there are certain terms and conditions to bear in mind.

About bad credit loans

All of us have a credit score. Your credit rating is a number that represents the level of risk you carry. If you have a high score, this means that lenders deem you low-risk. If you have a low score, lenders believe that you pose a high risk. If you want to take out a loan, banks and financial organisations will review your credit history. It’s easier to borrow money if you have a high credit score, but this doesn’t mean that you can’t borrow if you have bad credit. Bad credit loans are designed for those with a poor rating. In many cases, the terms are less favourable, but it is possible to access cash if you don’t have the best financial record.

If you’re keen to see if you are eligible for a bad credit loan, it’s important to check the qualifying criteria and look at the terms and conditions carefully before you proceed.

Key terms and conditions for bad credit loans

If you’d like to borrow money, it’s highly likely that there will be conditions in place. It’s crucial that you’re aware of the terms and conditions before you agree to take that cash and start a repayment scheme. The first thing to check when you apply for a bad credit loan is the criteria. If you submit an application, and it’s rejected based on the fact that you don’t qualify, this can affect your credit rating. Most lenders will only offer loans to UK residents who are over 18 years old with a full-time job and a UK bank account.

The next step is to go through the terms and conditions with a fine-toothed comb. When you’re looking at loan offers, make sure you understand exactly how much you’re borrowing, over what period of time at what rate. Look at the interest rate, and ensure you know whether it’s fixed or variable, and check the repayment schedule. It’s also wise to consult the terms and conditions to see what will happen if you default on a payment or you pay back the loan early. If you have any questions or queries about your application or the conditions set out by the lender, get some answers before you sign on the dotted line. With any loan application, it’s vital to ensure that you can afford the repayments before you proceed.


A loan is a financial agreement, and there are always terms and conditions in place. Before you make a final call, make sure that you read the small print, and that you understand exactly what taking out that loan means for you in the weeks, months or years to come. If you’re looking for a loan, Bonsai Finance can help you compare lenders and find the best bad credit loan options.