Getting Approved for a Bad Credit Loan in the UK

You can help increase your chances of being approved by only applying for loans that work within your budget. When you apply, use the sliders to select the loan amount and length of the loan term. We’ll tell you what you could expect each instalment of your bad credit loan to be with your selection. All you then have to do is consult your budget and adjust accordingly if needed.

We offer flexible repayment terms of up to 6 months on our loans for bad credit. Choosing a longer loan term will make each instalment smaller and more easily manageable, but it will increase the overall cost of your loan, as interest builds up over time.

The information you provide us in your application must be completely accurate. We run checks with Credit Reference Agencies and Fraud Prevention Agencies during the underwriting process. Any mistakes could slow down your loan application.

We don’t like turning applicants away, but it would be necessary if we thought it could lead you into further financial difficulties. As responsible lenders, we could not in good faith approve bad credit loans in the UK if we think you’d struggle to make the repayments. Missing repayments, as with any form of credit, has to be recorded on your credit file and can make it more difficult to be approved for credit in the future.

Why Might You Need Bad Credit Loans?

Every person’s credit history is stored and logged with Credit Reference Agencies (CRA). In the UK, all FCA authorised lenders are required to run a credit check on applicants before approving loans for bad credit. Here, we’ll see any notes on your credit file, as well as a credit score, which is a number calculated based on the events that have been logged in your credit file.

  • You can’t get a credit card
  • You’ve payday loans Port Clinton OH been turned down for a loan previously
  • Found it difficult to change energy suppliers
  • Refused an account set-up by a catalogue
  • You’ve been refused an account set-up by an online retailer
  • Refused a mobile phone contract

A low credit score can be the result of many different factors, including having missed payments on previous loans or credit cards – known as defaults, previous and current bankruptcy, County Court Judgements (CCJs), and the total amount you owe. Many lenders will see a low credit score as a reason not to approve loans, and it can affect your ability to obtain credit from established lending sources or from being accepted for a mortgage or other secured loans. However, our loans for bad credit appraisal looks beyond your credit score.

Whether you’re looking for bad credit loans online or not, you should regularly check your credit score. You have a statutory right to check the files held about you by credit reference agencies – there used to be fees involved but it’s now free.

To Summarise Bad Credit Loans in the UK

Many things affect your credit rating. The better your credit score the easier it is for you to use financial services and the more willing lenders are to lend you money. Also, the higher your score the better rates of interest you can achieve. Bad credit loans can help in the meantime, but there are cheaper forms of credit available.

Try to address any outstanding issues that are currently negatively affecting your credit score. Then, try to manage your ongoing finances so that you never miss a payment. Payday loans for bad credit are not suitable for the sole purpose of rebuilding your credit score.