Loans are helpful solutions when you need some fast cash. It could be investing in a new car, replacing a boiler, or consolidating existing borrowing agreements to reduce your monthly repayments.
However, your options can be limited if you’ve got bad credit or had problems paying a loan back before.
Many people think a low credit score makes them an unattractive prospect for lenders, but there are plenty of lenders who will offer loans for bad credit.
Believe Money is a professional loans broker dedicated to helping clients find the best borrowing solution for their needs.
Working with us means you can benefit from a fully bespoke service and enjoy a hassle-free application process.
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Services

15.6 million people in the UK feel the impacts of a poor credit score, but solutions are available.
According to an article by The Express, 15.6 million people in the UK delay purchasing a home, getting married and even changing careers due to a poor credit rating.
We’re living in challenging times, with Covid-19 slowly moving past us, and the cost of living crisis causing more families to rely on credit cards and loans.
Even the smallest things can contribute to a low credit rating, such as making a credit card payment a couple of days too late or choosing the wrong interest rate.
The critical thing to remember is that many people struggle to reach – and maintain – a good credit history, so there will always be loan providers who specialise in providing borrowing solutions for people who might not pass the general criteria.
Our specialists find clients the best loans for their circumstances. With so many solutions to choose between, we’re confident we can help you find a loan.
Here are the main options for individuals with poor credit.
Personal loans
While personal loans aren’t usually available for people with low credit scores, some providers out there will make an exception. However, these loans are controversial because they often come with high-interest rates and short repayment periods.
As personal loans are unsecured, they don’t require any collateral, such as property or valuable items. Lenders are taking on more risk, and most prefer candidates with good credit scores.
The amount of money you can borrow might be lower due to your credit rating, and many people will avoid these loans because of the high repayments.
However, a personal loan could be a good solution if you already have limited options and need some cash.
Learn more about personal loans.
Secured loans
Secured loans are one of the most popular solutions if you want to borrow money. They typically don’t require someone to have an excellent credit score because these loans let you use collateral as security.
For example, the lender will let you borrow money if you have viable equity from a property or other valuable assets.
However, these loans aren’t available if you don’t have collateral, so they’re not suitable for everyone.
Learn more about secured loans for people with bad credit ratings.
Guarantor loans
Many people with bad credit scores opt for guarantor loans, which give them more freedom. They’re often considered a last resort when all other avenues are closed to applications.
A guaranteed loan requires a close friend or family member of the borrower to sign the agreement. However, if you default on the loan, your guarantor will be responsible for making repayments, which puts some people off.
You’ll need to find someone with good credit and willing to take on the risk of repayments, so it depends on your family more than anything else.
Also, despite offering a guarantor, many loans have higher interest rates because lenders don’t have as much security.
Are you ready to take out a bad credit loan?
Bad credit loans can help you raise cash for a big purchase, but they have drawbacks. Before rushing into a decision, it’s essential to consider the pros and cons of borrowing money and whether you can pay it back in full.
Here’s what you should think about before applying for a loan.
Can you build your credit score before?
Every time you want to make a significant purchase, the retailer or bank will check your credit report. Building up a good score will make life easier, especially when it comes to securing loans or buying a property.
Some people increase their score before applying for a loan because it opens up better interest rates and repayment terms.
You can increase your score by paying off your credit cards and settling other outstanding debts.

Can you afford the loan?
People with a bad credit history often find that their loans come with high-interest rates, as lenders want more security. You’ll have to pay more each month than someone with excellent credit, and also ensure you don’t miss any monthly repayments.
An unexpected expense, such as car or boiler repairs, could impact your loan repayments, creating issues further down the line.
If you know that you live on a tight budget each month, it might be best to improve your financial situation before taking out a loan.
Failing to stick to your payment schedule could cause problems
Lenders expect people to make monthly loan payments, but defaulting on those payments could put you at risk. Some loan providers will discuss any financial difficulties you’re having and might be able to make repayments, but this isn’t a guarantee.
If you owe money to a lender, they can make a new payment schedule or get a debt collection agency to recover any outstanding amounts through your assets.
In serious cases, you could also end up in court with a judgement on your file.
Lenders consider numerous factors
A good credit file is just one of the factors in a lender’s decision to offer a loan. They’ll also look at your employment history and income to determine whether you can make repayments on time.
Owning a house doesn’t guarantee a loan because lenders need to look at your current equity.
For example, if your home is worth £300,000, but you have a mortgage of £250,000, your equity will only be £50,000, so you can borrow up to that amount.

How much can I borrow?
There are no set amount lenders offer because it depends on the above circumstances. Also, the type of loan will determine how much money you receive.
Secured loans are ideal for large purchases, as these loans can exceed £100,000. However, you won’t be eligible for secured loans if you don’t own a home.
Instead, your options will be limited to unsecured loans, they usually offer lower amounts of money.
The cut-off point is under £25,000, so these loans typically pay for smaller purchases or debt consolidation.
Search for bad credit loans with Believe Money
If you’re looking for a loan online, you’ll notice how many providers say no to individuals with bad credit. Unfortunately, traditional lenders have strict eligibility rules – but that’s what Believe Money is here for.
As a specialist brokerage, we offer a fully bespoke service for people who need help finding a loan provider.
We’ve shown numerous clients that past money troubles don’t necessarily mean their borrowing options are curtailed – we can help you, no matter your circumstances.
Here’s how we can support you:

We partner with specialist lenders
While you can go online and find lenders who’ll take you on, you won’t have much choice. As a broker, we partner with multiple lenders, including those who offer money to individuals considered higher risk.
If you’re having no luck with mainstream lenders, we can help you get a loan that suits your financial state.
Our checks won’t affect your credit score
We need to perform credit checks to match you with the best lenders. However, our soft credit check won’t impact your score, so you can rest assured that we’ll help you without worsening the situation.
Competitive interest rates
Wherever possible, we try to ensure our lenders offer competitive interest rates. Your credit score and factors such as missed payments will have an impact, but we go out of our way to find a suitable loan.

Compare bad credit loans today
When finding the best loan for your needs, we’ll always work hard to deliver a solution. Once we find the best option from our expansive network of UK lenders, you can make an application.
Our brokers support clients with loan applications and charge no upfront fees. So, if you want a brighter financial future, please call us for a free consultation, or contact us through our website.
How It works

Step 1.
Simple, easy application

Step 2.
We search our panel of lenders to find the deal that’s right for you

Step 3.
When you confirm your chosen deal, we get your application moving

Step 4.
The money lands in your bank
account – usually within two weeks
We compare loans from our panel of the UK’s top lenders to get you the best deal.
BELIEVE
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