Bad Credit Loans

Get between £100 - £5,000 paid out by

How much would you like to borrow?

  • 100% Online Process

  • Borrow up to £5,000

  • UK Based Lenders

  • Bad Credit Accepted

  • 2 Minute Application

  • Same Day Transfer

  • Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
    *Subject to application being approved by the lender. Not all lenders are able to provide up to £5000.

    Your Definitive Guide to Borrowing Money with Bad Credit

    Borrowing money with bad credit doesn’t have to be as frustrating as you might think. In fact, there are lots of bad credit loans available from many different lenders. Private lenders offer lots of opportunities that you will need to start looking into. If you have experienced problems getting approved due to bad credit in the past, this article can be a helpful resource. Banks are not your only option for getting the money you need. When you take the time to explore some of these options, you’ll be able to borrow without any issues.

    Is it Possible to Get a Loan with Bad Credit?

    Lots of people in the UK manage to borrow loans for all different amounts despite having low credit ratings. Even those who don’t have much of a credit history can still get approved by certain lenders. It is important to keep in mind that most of the lenders that give out loans to people with bad credit are not banks or credit unions. If you have bad credit, you’ll need to seek out a private direct lender online.

    How much would you like?

    Apply Online

    What is a Bad Credit Loan?

    The term “bad credit loan” typically refers to loans that are given out for short periods of time, though some can have terms of up to several months. They are given out by direct lenders that are based online. These lenders have a reputation for approving applicants with bad credit or even no credit history at all.

    Common Reasons for Bad Credit

    If you have a very low credit rating, there are probably numerous reasons. One of the most common causes of bad credit is late or missing payments on loans and credit card bills. It is also possible that you have poor credit because you filed for bankruptcy. Even those who have been a victim of identity theft can be left with ruined credit for a long time.

    Those who have a significant amount of outstanding debt usually have issues with bad credit as well. The more money you owe, the lower your score is going to be. Applying for a lot of loans, even if just for as little as £300 in a short span of time can also have a negative impact on your credit. This is why a lot of financial experts recommend only sending out one application every few weeks.

    When you take the time to look at your credit report, you will be able to see all of the different negative items on it. This will give you a better sense as to why you have such a low score.

    Who Can Benefit from a Bad Credit Loan?

    There are many different people who can benefit from getting a bad credit loan, including:

    • People with low credit rating: As the name suggests, bad credit loans can be very helpful for those with poor credit ratings. People with slightly lower than average to extremely poor credit can get approved.
    • People with a time sensitive expense: If you have some sort of expense that is time sensitive, cash loans are a good option. This is because you will be able to get the money you need extremely fast.
    • Students: These loans have become very popular with students and younger people who don’t have much of a credit history. If you haven’t yet established any credit but need a loan, this is one option to consider utilising.

    Look at Your Credit Reports

    Before you start trying to get a loan, you will need to know what your credit is like. You can do this within a matter of minutes by obtaining free copies of your credit reports. This information is very important when you are trying to borrow any amount of money. The lenders you will apply with are going to run a credit check, so it only makes sense to do this. Make sure there aren’t any errors on your report that could be negatively impacting your score.

    How Does Happy Penguin Compare?

    Why Use HP?
    What's the max loan amount?
    Up to £5,000
    No hidden fees.
    Is approval instant?
    Yes, immediate.
    On Screen Decision
    Poor Credit Possible?
    Yes. Bad credit too.
    All considered.
    Same day transfer?
    Within the hour!
    Direct to bank!
    Flexible Repayment Dates?
    Flexible terms.
    Quick and easy.

    Can a Bad Credit Loan Improve My Credit?

    Yes, absolutely. This is of course assuming that you pay your loan back on time. If you return the money you borrow by the required date, your score will go up. If you do not pay it back on time, your credit rating will decrease significantly. Whether these loans help or hurt your credit is entirely up to you. This is actually one of the best ways to work on raising your credit score, but you have to be diligent about paying it back.

    Comparing Deals

    It will also be necessary for you to take some time to compare deals on bad credit loans. You can get all of the information you need by simply going online. Most of the private lenders that give out these loans are based online, so you need to use the Internet to your advantage. It is possible to get quotes for these loans within seconds. This is by far the most effective way to find out how much you are going to pay for your loan with each lender.

    When you are doing this research, you’ll find that some lenders charge flat interest rates. In this case, the rate goes up with the amount you borrow. Since some of these lenders charge higher rates than others, you will need to compare what they have to offer. This will allow you to borrow the money you need without paying too much.

    What Can Bad Credit Loans be Used for?

    The bad credit loans that you can obtain from private online-based lenders can be used for anything. Many of the people who get these loans spend the money on emergency expenses like car or home repairs. Sometimes it is just a matter of having to get caught up on one’s bills. You can also buy a car or get money to put towards a down payment for a new house. There are no limitations whatsoever as to what you can spend it on.

    Is Approval Guaranteed?

    There is no reputable lender that will ever promise approval to any individual before they submit an application. While your chances of obtaining a bad credit loan might be very good, there is always the possibility of being turned down. It is important to keep this in mind as you go forward. There are factors other than your credit that can affect whether or not you are approved, including your income and employment history. Lenders take a number of things into consideration before making a final decision on any applicant.

    How to Obtain a Bad Credit Loan

    You will quickly discover that the process for getting a bad credit loan is actually quite simple and quick. There are no complicated steps required like with a bank loan.

    • Choose a lender: Make sure that you look for lenders that specifically advertise loans for bad credit. There are lots of these private lenders to choose from, so you don’t want to choose just any of them. The reputation of the lender you borrow from should be a primary concern. You should try to find a lender that has established a very positive overall reputation online
    • Fill out an application: You will be able to fill out an application for the loan you need on the lender’s site. This is a completely safe and secure process, so your information won’t fall into the wrong hands. Some lenders make it possible to complete a loan application in just a few minutes.
    • Read the offer: If you receive approval from the lender, you’ll have to spend a few minutes or so reading over the loan offer they send you. This document will be incredibly important, as it contains important details pertaining to the loan.
    • Receive your funds: Once you have officially agreed to the loan offer, you will get your money within the hour. This happens electronically, so there’s no need to go down to the bank and deposit a check. It is all incredibly convenient and simple.

    Improving Your Chances of Approval

    As someone who has bad credit, you will need to do everything possible to increase your chances of approval. Finding the right lender is one of the absolute best ways to do this. The fact is that some private lenders have more of a reputation for being flexible than others. While all of these lenders accept a lot of applicants with bad credit, some have stricter requirements. Spend as much time as you need researching these lender options until you find the right one.

    Bad credit loans have the potential to help a lot of people in the UK who need to borrow money. They offer a lot of benefits and very few risks or downsides. If you are having trouble getting approved for a loan from your bank, this is one of the best options available. It is a borrowing option that has worked for many people, and it can most likely work in your favour as well.

    Warning: Late repayment can cause you serious money problems. For help, go to Happy Penguin is a broker, not a lender, and does not make credit decisions.