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Personal Loans for Bad Credit

Borrow from £5,000 to £75,000.

Loan length limits from 12 months to 360 months.

Simple, clear application process to help you get personal loans for bad credit, or take on debt consolidation loans to repair your debts.

Regain control of your finances, take out a loan and make one simple monthly payment.

A woman with her hands on a credit score dial.

What is a Loan for Bad Credit?

A loan for bad credit is a type of personal loan offered to borrowers with weak, or poor credit scores. There are many different loans and many different types of financial institutions that offer them—banks, credit unions, and online lenders, among others.

One characteristic of loans for bad credit is that they will often be more expensive. This is because lenders charge higher interest rates to borrowers with bad credit than they do to borrowers with good credit.

A green mobile phone with a credit score and an apply button.

Why Choose a Loan for Bad Credit?

Despite the high costs, people may find loans for bad credit a necessary step to improve their credit scores. By making timely repayments, individuals can use these loans as a platform to improve their credit history, which could open up more favourable credit opportunities in the future.

Here at Consolidation Expert, we specialise in helping people to find loans for bad credit. Our experienced team of loan specialists will work with you to find the best suitable option for your financial needs. We understand that having a low credit score can be disheartening, so we work hard to ensure that our process is easy and stress-free for all applicants.

Applying for a Loan for Bad Credit

When considering a loan for bad credit, it’s important to understand the type of loan you’re applying for and the potential impact on your credit score. Different loans have different terms and conditions, so it’s crucial to compare bad credit loans from various lenders to find the most suitable one for your circumstances.

Having poor credit can make it more difficult to get approved for a loan, but it’s not impossible. There are lenders who specialise in offering loans to people with poor credit. However, these loans may come with higher interest rates and stricter repayment terms.

Applying for a bad credit loan is like applying for any other type of loan. You’ll need to provide details about your income, employment, and debts, and the lender will check your credit score. Some brokers and lenders offer a ‘soft’ credit check before they run a hard one, which won’t affect your credit score.

A woman sitting on a bad credit score dial.

Our Experts Comment On Consolidating Debts Using A Personal Loan For Bad Credit

Financial Expert Andrew Hagger.

Consolidating debts with a personal loan allows borrowers to merge their various debts into a single monthly payment. This simplifies the repayment process and makes it easier to stay organized. Additionally, personal loans for bad credit often come with lower interest rates compared to credit cards or other high-interest loans. This can result in significant savings over time, as more of the monthly payment goes towards reducing the principal balance rather than paying interest.

However, it is important for individuals to approach personal loans for bad credit with caution. Careful consideration should be given to the terms and conditions of the loan, including interest rates, fees, and repayment terms.

— Andrew Hagger, at Consolidation Expert.

Improving Your Credit Score with a Loan for Bad Credit

A loan for bad credit can be a powerful tool for improving your credit score, provided you make your repayments on time. By demonstrating that you can manage your debt responsibly, you can gradually improve your credit score, making it easier to qualify for better loan terms in the future.

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Apply For Debt Consolidation Loans with Consolidation Expert Today

Here at Consolidation Expert, our lending panel may be able to provide a debt consolidation loan to help you regain control of your finances and repair your credit score. If you’re struggling to regain control of your finances, don’t hesitate to apply for a debt consolidation loan today!

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Representative 14.8% APR

We are a broker, not a lender.

Representative Example: Borrowing £15,000 over 60 months, repaying £355.28 per month, total repayable £21,316.57.

Total cost of credit £6,316.57.

Interest rate 14.8% (variable).

The lenders on our panel offer loans for 12-360 months, with rates from 4.7% APR to 42.6% APR.

The Representative Example is based on all loans paid out by lenders between 1st Jan 2022 and 31st Dec 2022.

Personal Loans for Bad Credit FAQs

To get a loan for bad credit, start by researching lending options such as secured loans, guarantor loans, or specialised loans for bad credit. Choose the one that best suits your needs and financial situation. Then gather all necessary documentation, such as proof of income and credit history, before applying for the loan. Keep in mind that you may face higher interest rates or additional requirements due to your credit rating.

The best type of loan for someone with poor credit depends on their specific circumstances and financial needs. Some common options include secured loans, guarantor loans, and specialised loans for bad credit.

Secured loans may offer better interest rates but require collateral, while guarantor loans involve another person taking on the responsibility for the loan if you can’t repay it. Loans for bad credit are designed specifically for people with low credit scores and may be more accessible, though they often come with higher interest rates.

Yes, it is possible to get a personal loan with a bad credit score. There are specialised brokers and lenders that offer loans to people with poor credit scores.

Keep in mind that interest rates may be higher, and you might face additional requirements compared to someone with a better credit rating.

Debt consolidation loans can help people with bad credit by combining multiple debts, such as credit card balances and personal loans, into a single loan with one monthly payment. This can simplify management of the debt and possibly lower the overall interest rate. Having a single, consistent monthly payment can also improve the borrower’s credit rating over time if repayments are made on schedule.

When comparing bad credit loans, consider factors such as the interest rate, loan term, required collateral or guarantor, and any additional fees or charges. Research various lenders offering loans for people with bad credit and use comparison websites or credit broker services to make the process easier. Keep in mind that while some loans may offer lower interest rates, other factors such as fees or loan terms can impact the total cost of the loan.

Getting a loan with bad credit can either improve or harm your credit rating, depending on how you manage the loan. If you make consistent, timely repayments, this will reflect positively on your credit report and help improve your credit rating. However, if you miss payments or default on the loan, it can further damage your credit rating and make it more difficult to obtain credit in the future.

Yes, by consistently making timely repayments, you may be able to improve your credit score while repaying a bad credit loan. This demonstrates responsible borrowing behaviour, helping you to rebuild your credit rating. It’s also important to keep your overall debt levels manageable and aim to make positive changes to your credit management habits, such as avoiding missed payments or applying for too many loans in a short period of time.

Yes, there are alternatives to getting a loan for bad credit, such as secured loans, guarantor loans, or loans from credit unions. Additionally, you could consider using a credit card with a low credit limit to improve your credit rating by making consistent repayments and maintaining low balances. Some people may also consider borrowing from family or friends if they can offer a more favourable loan arrangement. Before making a decision, thoroughly research all possible options and choose the most appropriate one for your specific needs.

It may be possible to get a personal loan for people with bad credit without a guarantor or collateral through specialised unsecured bad credit loans. However, these loans often come with higher interest rates due to the increased risk for the lender. Keep in mind that your eligibility for such a loan may depend on factors such as your specific credit record, income, and overall financial situation.