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.

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.

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.