What is bad credit?
Having bad credit means having a low credit score. You're likely to have a low credit score if:
- You've a history of CCJs, bankruptcy or missed/late payments
- You're new to the country
- You've never borrowed before
I’ve got bad credit, what should I expect?
In the eyes of a loan provider, bad credit history means greater risk. Although you can expect higher rates than what you see on the high-street you can still bag yourself a deal so stay savvy.
By being clever and comparing your options you can save £100’s, regardless of your credit history.
You can use our eligibility checker to compare the most suitable loans for you.
What are my options if I have Bad credit?
You have plenty of options. Dependent on why you need the cash and your situation, some will be more suitable than others. The key to getting quick cash is choosing the right option first time.
Here’s an overview:
1. Guarantor Loans
The main pros and cons of guarantor loans:
- High acceptance rates
- Low rates compared to other bad credit options
- Borrow up to £15,000
- You’ll need a suitable guarantor to support you
2. High Cost Short Term Loans
The main pros and cons of short term loans:
- Quick payout
- Can be expensive
- Not for longer term borrowing
3. Credit Builder Credit Cards
The main pros and cons of credit builder credit cards:
- Often a cheaper alternative to short term loan
- Can help you rebuild your credit
- High interest if you don’t pay off what you borrow
4. Bank of Mum and Dad
Potentially the cheapest way to borrow money is to ask parents, family or close friends. You could benefit from a low (or even 0%) interest rate with more flexible repayments. It might be embarrassing to ask for help but it could save you some serious cash.
Struggling with debt?
Then borrowing more is not the answer. Here are a number of free debt charities that can help you get back on track:
- Money Advice Service - 0800 138 7777
- Stepchange - 0800 138 1111
- Debt Advice Foundation - 0800 043 40 50
- National Debtline - 0808 808 4000
- Payplan - 0800 280 2816
- Christians against poverty - 0800 328 0006
- Debt support trust - 0800 085 0226
- Business Debtline - 0800 197 6026
- The Debt Counsellors - 0300 456 2726
- Citizens Advice