There are a range of loans you can apply for with bad credit. Many people may be concerned that their credit score will stop them from getting the finance they need, however this simply is not the case. There are a whole host of lenders who can accommodate for borrowers with varied financial histories.
You don’t need an excellent credit score to get the finance you need. Many of our trusted partners accept borrowers with bad and fair credit ratings, visit our compare loans UK page to find out more. The table below shows the various different loans you can get with bad credit through Forces Compare:
|Loan Type||Description||Bad Credit Accepted||Conditions for Bad Credit Applicants|
(£10,000 to 250,000)
|With this loan, borrowers will have to secure a valuable asset, which will be used as collateral if the borrower defaults. The amount you can borrow with a secured loan will depend upon the value of the asset. Secured loans include car loans, home loans and more.||Yes||Secured loan lenders do accept applicants with bad credit for various different loan types. However, success in a mortgage application will typically require the borrower to have a good credit rating.|
(£1,000 to £25,000)
|With this type of loan, borrowers are not required to secure a valuable asset onto the loan as collateral in the instance that they default.||Yes||Whilst unsecured loan lenders accept applicants with bad credit, it may come with slightly higher interest rates or changes to the amounts you can borrow. This is because unsecured loans are usually based on an applicant’s credit-worthiness.|
(£500 to £15,000)
|These types of loans will require the borrower to have a guarantor. This guarantor typically has a good credit score, and agrees to make repayments on the loan if the borrower defaults.||Yes||Guarantor loans are often used by people with adverse credit histories. However, a lender will typically require the guarantor on the loan to have a good credit score amongst other requirements.|
Having a bad credit score shouldn’t hold you back from getting easy and affordable finance. When applying for a loan, it’s important to see whether the lender accepts bad credit for the specified financial product, filtering out those that don’t, and finding the loan that’s right for you.
A bad credit loan is a type of loan offered by lenders that accepts adverse credit ratings. One of the main things a lender can base their decision on when assessing an application is the applicant’s credit history.
If an applicant has a good credit score, this suggests that they have been good with borrowing and financial management in the past, and therefore will be likely keep up with repayments on future loans. People with good credit ratings are therefore a lower risk to lend to, meaning lenders will be more inclined to accept these types of applications.
However, there are some lenders that accommodate for those with bad credit histories, and use other aspects of the application, such as a valuable asset or a guarantor, to add some security that the borrower will be able to keep up with repayments.
These are known as bad credit loans, and can come in a range of different loaning types and values, including those in the table above. Find out more on getting a 5000 loan poor credit considered by following the link.
There are numerous different reason why your credit rating is bad. Some people simply have not built up a credit rating at all, whilst others have had issues with their financial management in the past which has made a mark on their credit history.
Your credit rating is decided by the UK’s three Credit Referencing Agencies, these being:
Your credit score can be damaged by various different situations. For example, say you can’t keep up with repayments on a loan and default. Your lender will send this information off to the CRAs, who will assess this and subsequently factor it in to your credit rating.
You can also damage your credit score due to late payments, County Court Judgements (CCJs), bankruptcy or having too many hard searches done. Therefore, before completing a loan application, it’s best to understand your credit rating and the finance options available to you.