Loans for bad credit

Get personalised loan offers designed for people with a bad credit score

Representative 39.9% APR. ClearScore is a credit broker, not a lender, 18+, T&Cs apply

Check your approval chances before you apply

See what the monthly repayments are and budget in advance

Compare as many offers as you like without harming your credit score

Compare loans from up to 4 lenders and find the right one for you

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Finding a loan for bad credit is easy on ClearScore

1. Sign up

Get your credit score and report for free, forever. And log in to see your personalised offers.

2. Compare your offers

The offers you see are tailored to your score.

3. Apply for your loan

We’ll tell you what your approval chance is, so you can apply with confidence.

You could still get a loan even if you have a bad credit score.

Tell us what you’re looking for and we’ll show you personalised offers.

What’s a loan for bad credit?

It’s for people with a bad credit score

It’s designed for people who have a bad credit score or a poor repayment history.

People with low credit scores are deemed riskier for lenders to give money to, so these loans can come with high interest rates.

Some lenders specialise in loans for bad credit

There are specialist lenders that handle loans for bad credit, so you may not come across household names if you’re looking to apply for one.

You might need to secure the loan

If you have a history of missing payments, you might need to have a loan secured with your home or other assets, or ask someone to guarantee your loan.

Getting a loan when you’ve got a bad credit score

If you have a bad or low credit score, you could still get a loan.

You might have to pay more interest but, at ClearScore, we work with lenders who specialise in helping you find the best loan for your score.

Some of our lenders will offer secured loans which could increase your chances of being approved.

Representative 39.9% APR.

The different types of loans for a bad credit score

There are a few different types of loans for bad credit – it’s important to find the right one for you.

Personal loans

You might be able to get a personal loan from a specialist lender. Your choice of lenders might be limited and the interest rate could be high, but if you’re managing the loan responsibly could help you improve your credit score.

Secured loans

If you’re a homeowner or have another asset in your name, getting a secured loan might be an option. You risk losing your assets if you can’t make the repayments. But, because the lender has that extra security, they might be able to offer you lower interest rates or a higher loan amount.

Guarantor loans

A guarantor loan is a type of unsecured loan. That means you’re not using something like your car or your home as collateral in case you can’t make the repayments. Instead, the lender asks you to provide a guarantor – usually a relative or close friend. If you miss your repayments, the guarantor may have to take responsibility for the loan and pay back what you owe.

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Things to remember before taking out a loan for bad credit

How much money you can borrow

A bad credit score suggests to lenders that it’s riskier to lend to you. So, you’ll probably be offered a smaller loan with a high interest rate. That’s why comparing offers before you apply is key – you can see if the total loan amount covers what you need before you apply.

If you can afford the repayments

When you compare loans on ClearScore, we’ll show you what the monthly repayments could look like. Giving you the chance to plan ahead and understand what your expenses could be during the loan term.

How you can help your credit score

As long as you make the repayments on time and in full, you could see your credit score improve over time. And a better credit score could mean better offers in the future. Try not to apply for more than one line of credit within 6 months because hard searches can impact your score.

How much can you borrow?

The amount of money you can borrow depends on things like your credit score and credit history. Lenders will use that information to determine how much they’re willing to let you borrow.

That’s why comparing offers before you apply is a great way to see what you’re likely to be eligible for.

The benefits of loans for bad credit

If you have a bad credit score, there are lenders who could help you get the money you need.

You can improve your credit score by paying back the loan on time and in full.

You can build your credit history by proving you can manage money responsibly.

If your credit score is low, you’re more likely to be accepted for this type of loan.

The risks of loans for bad credit

All loans are a form of debt so there are some risks you should be aware of.

Loans for bad credit usually come with high interest rates.

If you miss the repayments your credit score can worsen, which impacts your future options. And, if you’ve secured your loan, you risk losing your assets.

Taking out a loan increases your amount of debt – that might not be right for you if you have other lines of debt already.

The application process

You can apply for a loan for bad credit in the same way you’d apply for a standard loan.

Compare your offers

The offers you’ll see are tailored to you.

We’ll ask you for some information like how much you’d like to borrow and for how long, what you plan to use the loan for, and what your total monthly spending is.

Apply for the loan

The lender will usually ask you to give them some more information and then they’ll carry out a hard search on your credit history.

Wait for the money to arrive

If you’re approved for the loan, the lender could send you the money within a few days. You’ll usually have a cooling-off period –  it's a good idea to check with the lender how long you'll have to change your mind.

Feel more confident about getting a ‘yes’

We’ll show you what the monthly repayments, annual percentage rate (APR), and your approval chances are before you apply. Helping you plan ahead and feel more confident about getting a ‘yes’.

What’s a bad credit score?

Your credit score is made up of all the things in your credit report. That means your payment history, how much of your available credit you use, how long you’ve had credit for and how often you apply for new credit accounts affect the number you see.

There isn’t a specific number that makes your credit score ‘bad’. Generally, the higher your score, the easier it is to get something like a credit card or loan.

That’s because lenders are more likely to lend money to someone with a track record of paying back the money they owe.

Why you might have a bad score

Things like missed or late payments, bankruptcy, and not being on the electoral roll can lower your credit score. If you’ve never borrowed before, you won’t have built up your credit history, so you might not have a credit score just yet.

Why your credit score is important

Your credit score is a good indication of what's going on in your credit history. And your credit history can help you get things like credit cards, loans and car finance. It can even make it easier for you to rent property, get a mobile phone contract, or even get a job.

So, it’s important to keep an eye on your score and see what you can do to improve it.

How can you improve your credit score?

There are some simple steps you can take to improve your score.

Register to vote

Once you’re on the electoral roll, lenders can more easily check for proof of address – which can also speed up your application for a credit card.

Fix mistakes in your report

If you spot any accounts you don’t recognise, or mistakes in your personal information, let the credit reference agency (like Equifax, Experian or TransUnion) know.

Put some bills in your name

This can be helpful when you’re new to credit. Opening a bank account and paying your bills by Direct Debit means you can start building your credit history.

Try not to apply for lots of credit at once

It’s a good idea to wait about 6 months between credit applications (so you can show you’re borrowing responsibly).

Keep your credit utilisation between 10% and 70%

Credit utilisation – which just means how much of your available credit you use every month – impacts your score. Keeping it between 10% and 70% can show you’re borrowing responsibly.

Pay on time and in full

If you think you’re going to miss a payment – for your credit card, loan or other expenses – let your lender know. That way, you can see what your options are in advance.

Improve your credit score with ClearScore

See what’s impacting your score

Missed payments, new accounts, hard searches and more – we’ll give you a heads-up so you can understand what's making your score move.

Get easy tips to improve it

Every week, we’ll give you up to 10 insights to help you get to grips with your report. They’re filled with easy tips that could help improve your score and get it back on track.

Feel more confident about your credit choices

From lower interest rates to higher credit limits or loan amounts, a higher credit score can give you access to better offers in the future.

We’ll show you offers tailored to you – and order them based on what might be right for you.

Get your credit score for free, forever.

Frequently asked questions

Other types of available loans

There are lots of loans out there – it’s important to find the right one for you.

Debt Consolidation Loans

Using a debt consolidation loan to pay off your current debt could help you focus on one, more manageable payment.

Loans for People on Benefits

You could still get a loan if you’re on benefits. Some lenders specialise in loans for people on benefits, or with a bad, no, credit history.

Personal Loans

personal loan – also called an unsecured loan – is a one-off sum of money that you pay back over an agreed term (number of months).

Secured Loans

secured loan is usually for homeowners – you use your home as security to get a large amount of money. If you can’t make the repayments, you risk losing your home.

Car Finance Loan

With a car finance loan, there are a few different ways to pay for a new car, like UPL or hire purchase.

Guarantor loans

Guarantor loans are usually for people with a bad, or no, credit score because someone else in the agreement – the guarantor – meets the lender’s criteria and is responsible for repaying the loan if you can’t.