Have you ever applied for a personal loan, only to face rejection in the end? We feel you, as do many other British citizens. The truth is, rejected loan applications are more common than you might think. These have pushed borrowers to try a new kind of loan: bad credit personal loans. Curious to know how much one will cost you monthly? Try our bad credit loan calculator right here for an estimate.
Terms from 1 to 10 years. Representative example: 5 year £10,000 loan with comparison rates from 2.8% to 49.9% APR would cost between £10,728 and £27,321, including fees. The interest can vary between £728 and £17,321.
Bad credit vs good credit
Rejected loan applications are normally a result of what we call “bad credit”. Bad credit refers to a borrower’s history of mishandled loan payments, regardless of the lender. That includes all late and missed payments, and loans the borrower couldn’t pay off. Lenders and credit agencies usually express bad credit as low credit scores. (We explain more about credit scores later on in this guide.)
On the other hand, there’s also what we call “good credit”. This refers to one’s history of always paying off loans on time and in full. Good credit appears in the form of high credit scores to lenders and credit agencies.
Does this mean only borrowers with good credit can get personal loans, then? While it’s true such applicants have an advantage, you mustn’t lose heart. That’s what bad credit personal loans are for.
About bad credit personal loans
If your credit score is poor, it does become hard to apply for personal loans. You’d have to approach lenders who specialise in financing for borrowers with bad credit. Find those in our table here, so you can start to compare bad credit loans.
Before submitting any application, you should do your homework on the loan terms. For a personal loan for bad credit, these might be more restrictive than normal. The lender might only allow a smaller loan amount, or a shorter loan term. They may also charge more interest, reflecting higher risks they’re taking by lending to you. It’s prudent to check first if the resulting monthly payment will fit your overall budget.
Some lenders may require a guarantor to sign with you before granting the loan. A guarantor is a family member or friend who’ll settle your loan in case you can’t. While it’s an easier way to get approved, the financial responsibility will still be yours. Take note: even if the guarantor repays the loan, it’ll still affect your credit score.
Applying for bad credit loans
As with any loan, lenders maintain some minimum requirements that you must meet before applying:
- 18 years of age or older
- Permanent UK residence
- Ownership of a UK-based bank or building society account
Depending on the lender, you can apply for the bad credit personal loan through:
- Their website or mobile app
- Phone or email
- Their physical branches
You’ll need to complete a form with personal details and the loan terms you want. You’ll also need to provide proof of your identity, residential address, and income. Do note that during the loan review, the lender may request additional information or documents.
Bad credit personal loan calculator
Repayment Period
12 months
to 60 months
Loan Amounts
£7,500
to £25,000
Paying off your debt using a Nationwide loan could give you the chance to take control of your finances.
Repayment Period
12 months
to 60 months
Loan Amounts
£7,500
to £15,000
You are eligible if youre 21 or over and live in the UK permanently, you have a regular yearly income of £6,000+, you are able to make your repayments by Direct Debit, and you havent been declared bankrupt, had a CCJ or an IVA within the last 6 years. All credit is subject to status and credit checks.
Repayment Period
12 months
to 96 months
Loan Amounts
£15,000
to £25,000
Make your plans a reality with a personal loan with fixed monthly payments, an instant credit decision, quick access to funds and no arrangement fee.
Repayment Period
24 months
to 60 months
Loan Amounts
£15,000
to £24,999
When it comes to putting your plans into action, its personal. And with a personalised loan just a few clicks away, getting things moving could be simpler than you think. Get your loan rate before you apply without it affecting your credit score.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£5,000
to £50,000
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £25,000
We offer mortgages, loans, arranged overdrafts, guarantees and indemnities in a wide range of currencies. The rate of interest payable depends on the individual circumstances of each customer and may be subject to change in the future.
EST Monthly Repayment
12 months
to 84 months
EST Monthly Repayment
£1,000
to £30,000
As well as offering guaranteed rates, we give you the flexibility you need. We offer loans from £1,000 to £30,000 with loan terms from one to seven years.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£100
to £25,000
We work with lenders to help you find a loan to suit your needs, whether youre looking to buy a car, go on the holiday of a lifetime or get a gift for someone special.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £20,000
You can apply online for a personal loan provided by Santander UK plc to help turn your plans into reality. Credit subject to status. Terms and conditions apply.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £25,000
You can choose how much money you want to borrow at a fixed rate, then choose over how long you want to pay it back. This will allow you to pay back your loan each month with an amount to suit your budget.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £25,000
Planning a big event or purchase? Maybe youre planning some home improvements or buying a new family car it all adds up. Youve come to the right place a Sainsburys Bank Loan could be the answer.
EST Monthly Repayment
12 months
to 84 months
EST Monthly Repayment
£7,500
to £25,000
Our 5 star rated loans help customers to borrow well. ? ? With loans from £1,000 to £25,000 (or £300* to £50,000 for TSB current account customers). Our lowest rate: 3.2% APR representative for loans between £7,500 and £25,000 for 1 - 5 years.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £25,000
Paying off your debt using a Nationwide loan could give you the chance to take control of your finances.
EST Monthly Repayment
12 months
to 84 months
EST Monthly Repayment
£15,000
to £25,000
Post Office Personal Loans are provided by Bank of Ireland UK. Post Office Limited is a credit broker and not a lender.
EST Monthly Repayment
12 months
to 84 months
EST Monthly Repayment
£15,001
to £25,000
Personal loan with breakdown cover Loans from £1,000 to £25,000 with no arrangement or set-up fees. Provided by Bank of Ireland UK. AA Financial Services Limited is a credit broker and not a lender.
EST Monthly Repayment
12 months
to 120 months
EST Monthly Repayment
£15,001
to £25,000
A loan from Tesco Bank could be a great way to fund a home improvement project, upgrade your car, or help to cover the cost of your wedding.
EST Monthly Repayment
12 months
to 84 months
EST Monthly Repayment
£15,000
to £24,999
Special surprise or a serious buy weve got a loan youll love. A special occasion, a once-in-a-lifetime break, or a little more oomph in your home. Whatever you're leaning towards, you'll love our personal loan.
EST Monthly Repayment
12 months
to 84 months
EST Monthly Repayment
£15,000
to £24,999
We've joined forces with Virgin Money and the team has been busy behind the scenes to bring the brands together and create one brilliant bank under the Virgin Money name
EST Monthly Repayment
12 months
to 36 months
EST Monthly Repayment
£15,001
to £20,000
Repay your loan over a period of 12 to 84 months on loans between £1,000 and £20,000, or over a period of 12 to 60 months on loans between £20,001 and £25,000
EST Monthly Repayment
24 months
to 60 months
EST Monthly Repayment
£7,500
to £25,000
Award-winning Personal Loans Make it happen, Make it Hitachi Personal Finance
EST Monthly Repayment
12 months
to 84 months
EST Monthly Repayment
£5,000
to £29,999
Make bigger purchases more manageable with a Personal Loan at 3.3% APR representative. Apply via the App or Online Banking and you could get the money in minutes.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £24,999
Are you thinking of buying a new car, doing a spot of DIY or tidying up your borrowing but you are not sure how much to borrow? Use our loan calculator to help you.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£15,001
to £20,000
You are eligible if youre 21 or over and live in the UK permanently, you have a regular yearly income of £6,000+, you are able to make your repayments by Direct Debit, and you havent been declared bankrupt, had a CCJ or an IVA within the last 6 years. All credit is subject to status and credit checks.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £24,999
Personal Loan rate of 3.9% APR representative on loans from £7,500 to £35,000 over 1 to 5 years
EST Monthly Repayment
12 months
to 96 months
EST Monthly Repayment
£15,000
to £25,000
Make your plans a reality with a personal loan with fixed monthly payments, an instant credit decision, quick access to funds and no arrangement fee.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£7,500
to £25,000
Log on to Internet Banking to see how much you could borrow and if youre likely to be approved. This won't affect your credit score. 3.9% APR Representative on a Personal Loan between £7,500 and £25,000 over 1 to 5 years.
EST Monthly Repayment
12 months
to 60 months
EST Monthly Repayment
£1,000
to £35,000
Weve welcomed award-winning lender, RateSetter, into the Metro Bank family to bring our customers a personal loan thats easy to apply for and simple to manage.
EST Monthly Repayment
24 months
to 96 months
EST Monthly Repayment
£20,000
to £25,000
If you're thinking about changing your car, tidying up your finances or making some improvements to your home, a loan from us could be the helping hand you need.
EST Monthly Repayment
24 months
to 60 months
EST Monthly Repayment
£20,000
to £24,999
If you're thinking about changing your car, sprucing up your home or planning your dream wedding, a Royal Bank of Scotland loan could help get you there.
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Minimum and maximum loan periods vary between 1 month and 10 years. APR varies between 2.80% and 71.30% p.a. Total interest repayments vary between £435 and £1,019 over the life of the loan. *APR is based on an unsecured loan of R£15,000 for a term of 3 years. WARNING: This APR is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different APR. These rates can change without further notice. All rates quoted are per annum.
