WARNING: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk/en.

Rates from 12.9% APR to 1625.5% APR.

Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%. Representative APR: 79.5% (variable)

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Match with lenders who will say yes

At BadCredit.co.uk, we could help you get loan you need faster and with less effort. We quickly analyse our panel of lenders for you and present you with the best match, making the whole loan process of securing a loan easier and giving you significantly better odds of being approved.

Quick lender decisions

Our group of lenders use cutting-edge technology to process applications quickly, which can lead to super fast approvals and even same-day funding from some lenders. But remember, approval speed and funding times might be different depending on the lender you’re matched with, so we can’t guarantee you’ll be funded on the same day.

Soft search technology

We work with a wide range of lenders and brokers, and we compare them without performing a hard credit check on your file. Our panel carries out a soft search, which only you can see on your credit report. We use the information you provide to pinpoint the lowest cost lender in our network who’s likely to approve your application.

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When you request a quote from BadCredit.co.uk, we use your information to connect you with a credit provider likely to accommodate your credit needs. Your data is protected using encryption on our SSL-secured website, and we neither store nor share your information with third parties, except for the lender or broker you are matched with.

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Skip the phone calls and paperwork – simply fill out our form with the required details to match you with the ideal provider. Once submitted, you’ll instantly see your personalised loan and credit options tailored to your needs.



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Unlike some of the larger comparison websites that are owned by product providers, who often push their own products first, BadCredit.co.uk is entirely independent and unbiased. Our dedication to impartiality ensures that we focus solely on providing you with the most suitable options for your unique financial needs, without any hidden agendas.



Current best unsecured bad credit loan direct lenders


We’ve compared hundreds of loans and compiled a list of the top 5 UK loans from lenders who might offer loans to individuals with a less-than-perfect credit history.

Try our eligibility checker to receive a free quote from our panel without impacting your credit score. Keep in mind if, after receiving your quote you formally apply for a loan with a lender they will perform a hard credit check which will affect your credit file.

Keep in mind: our panel may change over time, and we might not compare all lenders featured in our top 5 list.

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Types of bad credit loans

There are various loan options available for individuals with a poor credit score who need access funds. These can be classified into two categories: secured and unsecured bad credit loans. Our platform can assist you in identifying and comparing the different types of bad credit loans, including their terms, fees and qualifications.

Guarantor Loans

Guarantor loans are a type of personal loan where a friend or family member (the guarantor) co-signs the loan agreement, promising to repay the debt if the borrower can’t. They’re designed for people with poor or limited credit histories, offering a way to access funds while also helping to build credit. Borrowers benefit from potentially lower interest rates and better borrowing terms than they might get with other types of bad credit loans.

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Logbook Loans

These are secured loans that use your vehicle’s logbook as collateral. Borrowers can access funds while still using their car, but risk losing it if they fail to repay the loan. Logbook loans are typically for those with poor credit, offering a way to borrow money without relying on credit scores. We can offer a better alternative to these loans that won’t put your vehicle at risk.

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Payday Loans

These are small, short-term loans intended to cover unexpected expenses until the borrower’s next payday. They often have high interest rates and fees, and can be costly if not paid back promptly. Payday loans can be easy to obtain compared to other types of loans, even for those with poor credit.

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No Guarantor Loans

These loans don’t require a co-signer, allowing borrowers with poor or limited credit histories to access funds without involving a friend or family member. Interest rates can be higher than with guarantor loans, and borrowing limits may be lower. No guarantor loans place full repayment responsibility on the borrower.

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Short Term Loans

These are loans with a repayment period of a few weeks to a year, designed for temporary financial needs. Short-term loans can be easier to obtain than traditional loans but often have higher interest rates. They’re available in various forms, including payday loans and some personal loans.

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Same Day Loans

These loans offer quick access to funds, often within hours or the same day of application. They’re useful for emergencies or urgent financial needs, but may come with higher interest rates and fees. Same day loans can include payday loans, short-term loans, or other types of fast-access credit.

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Frequently asked questions (FAQ)

What is a home improvement loan?

A home improvement loan is a financial product focused on helping borrowers fund renovations, repairs or upgrades to their property. 

Used properly, home improvement loans are valuable resources for homeowners seeking to upkeep or add to the value of their home.

What types of home improvement loans are there?

Generally speaking, there are two main types of home improvement loan that you can take out: unsecured and secured. 

Unsecured loans are for smaller amounts and far less risky than secured loans, as they do not feature any collateral. 

Secured loans, on the other hand, offer far greater sums for borrowing. They also feature greater risk, as you will need to put down your home as collateral and run the risk of having your home possessed if you are unable to make your loan repayments.

What alternatives are there to a home improvement loan?

If you are unsure about taking out a home improvement loan, you may consider alternatives such as remortgaging, home equity loans or a home equity line of credit (HELOC). 

A HELOC consists of credit borrowed against your home’s available equity. Your home’s equity is defined as the difference between your current mortgage balance and the latest appraised value of your home.

Should I choose a secured or unsecured home improvement loan?

If you are a homeowner considering a secured home improvement loan, then we recommend speaking to a financial advisor or mortgage broker before making your decision.

It is often cheaper and safer for you to remortgage your house and unlock extra cash than to use your house as collateral in a secured home improvement loan.

How do I apply for a home improvement loan?

Applying for a home improvement loan is no different to applying for most other loan types – you’ll need to pass the eligibility criteria, specify your loan requirements and provide all the documentation needed for your lender to run their approval checks. 

Generally speaking, criteria for home unsecured improvement loan eligibility include: 

  • 18 years or more in age
  • A UK resident
  • Proof of regular income

Consider the cost of your home improvement project, which will determine the amount of money you need to borrow.

Can I get a home improvement loan with bad credit?

It is certainly possible to secure a home improvement loan if you have low or absent credit history. In fact, many lenders specialise in bad credit loans

Other lenders will be able to meet your needs but will request that you secure the loan with collateral such as your car or home itself. We recommend treading carefully in these situations – whilst the funds on offer may be appealing, you run a risk of losing your assets if you become unable to meet the repayment needs. 

And as you are applying for a loan with bad credit, your repayment terms will likely be far stricter than for those with higher credit scores.

How much can I borrow with a home improvement loan?

The amount you can borrow with a home improvement loan will vary from lender to lender. It will be affected by specifics such as loan amount, repayment length and whether it is a secured or unsecured loan. 

Before securing your home improvement loan, ensure that you have closely reviewed the terms and are confident in being able to meet the repayment requirements.

Can I apply for a joint home improvement loan?

Yes, this is possible, and in joint home improvement loans you may be able to borrow larger amounts. 

Remember, if you take out a joint home improvement loan then you will both be subject to credit checks. 

And if you fall behind on your repayments, then the credit scores of all borrowers will be affected negatively.

How do I choose the best home improvement loan?

We can help you find an unsecured home improvement loan using our eligibility form which takes just a few minutes to fill in.

The lenders on our panel can offer loans up to around £15,000 but the amount you’ll be able to borrow depends on multiple factors.

After filling in the form we match you with one of the 30 lenders from our panel who’s willing to lend to you given the information you’ve provided.

How do I plan for a home improvement loan?

First, you’ll want to consider the specifics of the home improvement you have in mind. Do you need to fix a leaky drainage system? Or are you planning a new kitchen and dining room area?

Engage with your contractor to determine an accurate estimate for the project cost. Some experts recommend adding at least 10% to account for any unexpected issues, which often occur when carrying out home improvements. 

Then, decide on whether you want a secured or unsecured loan. Unsecured loans will provide lesser borrowing sums yet also come with far lesser risk – as you do not need to put your home up as collateral.

Finally, review the interest rates, repayment terms and loan details closely to ensure that you are satisfied with them before committing to receiving the loan.

Should I remortgage my house instead of a home improvement loan?

In many cases, remortgaging your home to free up new cash may be a safer decision than taking out a secured home improvement loan. However, taking out an unsecured home improvement loan requires no collateral and remains a valid option for homeowners confident in making repayments. 

In this situation, we recommend talking with a financial advisor as well as your current and potential new mortgage provider. 

Remember, if you remortgage your home you stand to free up more money in the short term, though will end up paying off your mortgage over a longer term. When used right, this is a valuable option for homeowners – though must be approached carefully and with full clarity regarding the terms of your new mortgage provider.

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Page last updated: December 08, 2023 | Author: