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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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.

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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.

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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 an unsecured loan?

An unsecured loan is loan that won’t be secured against collateral such as a home or car. This is different from secured loans, where you put up collateral that might be seized if you fail to make payments on time. 

The lender may increase the interest rates and decrease the maximum loan amount for an unsecured loan. That’s because the lack of collateral makes it riskier for the lender. Also, you might have a higher chance of getting rejected when you choose an unsecured loan compared to a secured one.

What factors determine my eligibility for an unsecured loan?

The factors that determine your eligibility for an unsecured loan include:

  • Your credit history and credit score.
  • The borrowing terms and amount you want to borrow.
  • The size of the monthly repayments and your personal income. 
  • Other lender-specific criteria. 

Furthermore, you could improve your eligibility for an unsecured loan with a guarantor. This is usually a friend or family member who will take responsibility for paying back the loan if you cannot.

How can I compare unsecured loans?

You can compare unsecured loans by considering several factors, which are as follows:

  • Interest rate: The interest rate is the main fee you’ll pay for receiving a loan from a lender. Rates vary significantly on our platform based on factors like your credit score and could be anything from 12.9% APR to 1,625.5% APR. Aim for a lower interest rate to reduce the cost of the unsecured loan. 
  • Other fees and charges: Read the terms and conditions of the loan agreement for hidden fees and charges. For example, if you plan to potentially pay back the loan early, consider the fee associated with this action.
  • Loan terms: Consider various aspects of the loan terms, including the length of repayment. Choosing a longer repayment period results in lower monthly payments but could increase the overall amount of interest you pay for the loan.
How do I figure out if I can afford an unsecured loan?

To figure out if you can afford an unsecured loan, you need to evaluate your monthly expenses. Compare the amount of money available after living costs with the monthly repayments. Ideally, your monthly disposable income is more than enough to pay for the unsecured loan. 

However, if you’re having trouble affording the unsecured loan, you can borrow a smaller amount or increase the repayment period to reduce the size of monthly repayments. Also, it’s best to compare multiple unsecured loan lenders to find the best deal.

What are the pros and cons of getting an unsecured loan?

It’s important to consider the pros and cons of getting an unsecured loan before applying to decide if it’s the right choice for you in your financial situation. 


  • Avoid losing assets: Choosing an unsecured loan means you don’t need to put up collateral assets that could potentially be taken away from you. This reduces the stress of potentially losing your home, car, or other asset vital to your everyday life. 
  • Improve credit score: An unsecured loan could potentially be an opportunity to increase your credit score by making the repayments on time. By improving your credit score, you could potentially qualify for better loan terms in the future. 
  • Receive emergency cash: The money you receive could be used to pay for financial emergencies. This includes living costs, medical bills, car repairs, and more. 


  • Negatively affect credit score: If you are declined for an unsecured loan or fail to make repayments on time, then your credit score could be negatively affected. Therefore, you could get worse loan terms in the future and have a lower chance of successful loan applications. 
  • Debt spiral: Failure to repay the loan can lead to fees and more interest payments. This could result in a debt spiral that’s difficult to escape.
  • Higher interest rates: Lenders view unsecured loans as riskier, so they typically increase the interest rate. This means you’ll need to pay back more money for the same loan size than if you choose a secured loan.
How will getting an unsecured loan affect my credit score?

Getting an unsecured loan could affect your credit score positively or negatively depending on several factors. Unsecured loans could affect your credit score positively if you make repayments on time for the duration of the loan. Therefore, it’s important to ensure you can afford the unsecured loan. 

However, getting an unsecured loan could negatively impact your credit score if you are rejected during the application process or fail to make repayments on time. Here at BadCredit.co.uk, we match borrowers with carefully selected loan lenders to increase probability of acceptance when compared to applying to an individual lender directly.

How many unsecured loans can I have?

The number of unsecured loans you can have is not limited, but you need to make sure that you can repay all loans you take out. Also, lenders will evaluate your existing loans and take that into account during your unsecured loan application process. You may get rejected for additional loans if the lender believes your financial commitment to current loans is all you can handle. 


How much does an unsecured loan cost?

The cost of an unsecured loan depends on the interest rate charged by the lender. After the lender has concluded the credit check, they will determine the interest rate to charge. Note that interest rates for unsecured loans tend to be higher than secured ones since they carry more risk for the lender. 

To decrease the cost of an unsecured loan, you could improve your credit score, get a guarantor, and compare lenders. Taking the time to compare the offers of multiple lenders will help you find a deal matching requirements. 

Finally, be aware of the extra charges by reading the terms and conditions. Examples of extra fees include early payment fees if you want to pay off the loan earlier than the agreed-upon date. 


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Page last updated: December 08, 2023 | Author: