Loans for people with very bad credit

A very bad credit loan is aimed at borrowers who have a bad credit rating. Typically, these borrowers cannot get a personal loan from lenders and banks. That’s because the risk of lending money to an individual with a very bad credit rating is high. 

However, in a financial emergency, you could get a very bad credit loan with a poor credit history. You’ll be charged a higher interest rate than for regular personal loans. Also, the loan amount is capped at a lower amount. 

Here at BadCredit.co.uk, we specialise in putting borrowers in touch with lenders who provide very bad credit loans. Note that there’s no guarantee you’ll get a very bad credit loan since it depends on multiple factors outside our control.

Very bad credit loans require a credit check, and getting rejected could negatively impact your credit score. Therefore, it’s important to match with the right lender before applying for very bad credit loans.

Our matching tools at BadCredit.co.uk pair you with suitable providers before submitting a formal application. You’ll receive a quote, and there’s no obligation to proceed with the application.

Also, we’ll do a soft credit check during the preapproval process, which is recorded on the customer’s credit file. You can see the soft credit check history, but 3rd parties cannot. Once you formally apply for a very bad credit loan, the lender will do a hard credit check.

Very bad credit loans are for borrowers with a poor credit history or a low credit score. This loan type is usually chosen by borrowers who have tried getting mainstream lenders and have been rejected. 

Furthermore, very bad credit loans should be a last resort in emergency situations. They can be used to pay for car repair bills, food, mortgage payments, and more. Also, it might make financial sense to get a very bad credit loan instead of going into overdraft on your bank account.

Very bad credit loans with no guarantor are loans where a co-signer is not required. This means that the borrower takes all the financial responsibility for the loan. However, because it’s a very bad credit loan, expect the interest rates to be high and the loan amount capped. 

Furthermore, when you apply for a very bad credit loan with no guarantor, the chances of getting rejected might increase. You’ll want to avoid getting a loan application rejected since it could negatively impact your credit rating. 

Choose a very bad credit loan with no guarantor when you are confident about getting approved and that you’ll have the funds to make repayments on time. 

There are a number of benefits to very bad credit loans, and they are worth knowing to help you decide if it’s the right choice for your financial situation. Here’s a summary of the very bad credit loan benefits:

• Simple application process: Applying for very bad credit loans is simple, and you can get a quote in less than 2 minutes here at BadCredit.co.uk. There’s no need for awkward in-person meetings or taking time-consuming calls. 
• Fast matching process: We can quickly match you to FCA-approved lenders, and it could increase your chances of successful approval. However, we cannot guarantee approvals since there are many factors outside of our control, such as your credit history. 
• Credit score improvement: You can use a very bad credit loan as an opportunity to improve your credit score by making repayments on time. This could improve your credit score and potentially give you access to better loan deals in the future. 
• Flexibility: There are no restrictions on what you spend your money on once the loan is approved. The lender will not pry or judge you on the purchases. 
• Quick access to money: It’s not guaranteed, but you may potentially receive the funds on the same day of making the application. Getting your hands on the funds quicker helps address financial emergencies. 

You could get a very bad credit loan on the same day, but there’s no guarantee. It depends on the time of day you apply for the loan and the response speed of the lender. We’ll do our best to match you with the right lender for your financial situation and credit history.

You do not have to pay back the very bad credit loan immediately. During the application process, you can choose from a set of allowed repayment periods, which can range from a few months to years.

Increasing the loan repayment period benefits borrowers who want to pay back a small amount at a time. However, you can also repay the loan early if you have the funds. Note that some lenders will charge you a fee for paying back the very bad credit loan early. You can read about the potential fees when applying for a loan from a specific lender.

The difficulty in getting approved for a very bad credit loan depends on various factors. This includes your credit score or credit history and the number of lenders you compare when choosing the best option. 

BadCredit.co.uk is a FCA authorised comparison website that will try hard to match you with the best lender for your case. This could potentially increase the chances of getting approved for a very bad credit loan.

No, not all very bad credit loans require a guarantor, but having one could increase your chances of a successful application. The lender has a higher risk when you don’t apply with a guarantor, so they will increase the interest rates and lower the available loan amount.