Best Personal Loans for Bad Credit UK (2025)
Compare specialist lenders offering personal loans to people with poor credit history. Find the best rates, terms, and eligibility requirements for your situation.
BEST OVERALL
Amigo Loans
23.5% - 49.9% APR
HIGHEST AMOUNTS
Everyday Loans
Up to £15,000
FASTEST APPROVAL
Likely Loans
Same-day decisions
Compare Bad Credit Loan Providers
49.9% APR representative
APR RANGE
23.5% - 49.9%
LOAN AMOUNT
£1,000 - £10,000
TERM
1-5 years
MIN CREDIT SCORE
No minimum
Pros
- Accept very poor credit
- Competitive rates for guarantor loans
- Help rebuild credit score
Cons
- Requires guarantor
- Guarantor liable for debt
- Limited loan amounts
Eligibility Requirements
UK resident, 18-75 years, guarantor with good credit required
69.9% APR representative
APR RANGE
19.9% - 69.9%
LOAN AMOUNT
£1,000 - £15,000
TERM
1-5 years
MIN CREDIT SCORE
Poor credit accepted
Pros
- Branch network across UK
- Personal service
- Quick decisions
- Higher loan amounts
Cons
- High interest rates
- Limited online presence
- Strict affordability checks
Eligibility Requirements
UK resident, 21+ years, regular income, homeowner preferred
64.9% APR representative
APR RANGE
19.9% - 64.9%
LOAN AMOUNT
£1,000 - £5,000
TERM
1-3 years
MIN CREDIT SCORE
Fair to poor credit
Pros
- Quick online process
- Soft search initially
- Good customer service
- Transparent pricing
Cons
- Lower maximum amounts
- Shorter repayment terms
- Limited to smaller loans
Eligibility Requirements
UK resident, 18+ years, minimum £1,000 monthly income
69.9% APR representative
APR RANGE
19.9% - 69.9%
LOAN AMOUNT
£1,000 - £8,000
TERM
1-5 years
MIN CREDIT SCORE
Poor credit considered
Pros
- User-friendly website
- Quick approval process
- Competitive rates for bad credit
- No arrangement fees
Cons
- Variable interest rates
- Limited customer support
- Strict income requirements
Eligibility Requirements
UK resident, 21+ years, employed for 3+ months
1333% APR representative
APR RANGE
19.9% - 1333%
LOAN AMOUNT
£100 - £10,000
TERM
3 months - 5 years
MIN CREDIT SCORE
Very poor credit accepted
Pros
- Accept very poor credit
- Flexible payment options
- Home collection service
- Small loan amounts available
Cons
- Extremely high APR
- Weekly payment burden
- Expensive overall cost
- Debt collection practices
Eligibility Requirements
UK resident, 18+ years, any employment status
Bad credit loans come with significantly higher interest rates than mainstream personal loans. Before applying, consider improving your credit score, exploring credit union loans, or asking family/friends for help. Only borrow what you can afford to repay, as missing payments will further damage your credit rating.
Understanding Bad Credit Loans in the UK
Bad credit personal loans are designed for people who have been refused credit by mainstream lenders due to poor credit history. These specialist lenders assess applications differently, often considering current income and affordability rather than just credit scores.
Types of Bad Credit Loans
There are several types of bad credit loans available in the UK, each with different requirements and risk profiles:
1. Guarantor Loans
Guarantor loans require a friend or family member with good credit to guarantee the loan. The guarantor agrees to make payments if you can't, which allows lenders to offer lower interest rates (typically 23.5% to 49.9% APR). These loans often have the best terms for people with very poor credit.
2. Unsecured Bad Credit Loans
These loans don't require a guarantor or collateral but come with higher interest rates (up to 69.9% APR) to compensate for the increased risk. Lenders like Everyday Loans and Likely Loans specialize in this market.
3. Secured Loans
Secured against your home or other assets, these loans offer lower rates but put your property at risk. They're typically used for larger amounts (£10,000+) and longer terms.
How to Choose the Right Bad Credit Loan
When comparing bad credit loans, consider these factors:
- APR: The total cost of borrowing, including interest and fees
- Monthly payments: Ensure they fit comfortably in your budget
- Loan term: Longer terms mean lower monthly payments but higher total cost
- Eligibility requirements: Check you meet the lender's criteria before applying
- Early repayment: Some lenders charge fees for paying off loans early
Improving Your Chances of Approval
To maximize your chances of getting approved for a bad credit loan:
- Check your credit report for errors and dispute any inaccuracies
- Register on the electoral roll to verify your identity and address
- Demonstrate stable income with payslips and bank statements
- Consider a smaller loan amount to reduce the lender's risk
- Avoid multiple applications in a short period
Alternatives to Bad Credit Loans
Before taking a high-interest bad credit loan, consider these alternatives:
- Credit unions: Often offer loans to members with poor credit at competitive rates
- Family and friends: Borrowing from people you know can avoid high interest rates
- Budgeting and saving: Delay the purchase and save up instead of borrowing
- Credit building: Improve your score over 3-6 months to access better rates
Frequently Asked Questions
Yes, several UK lenders specialize in bad credit personal loans. While you'll face higher interest rates (typically 19.9% to 69.9% APR), options include guarantor loans, secured loans, and specialist unsecured lenders who consider applications from people with poor credit histories, CCJs, or defaults.
Bad credit lenders typically accept credit scores below 560 (Experian), 379 (Equifax), or 551 (TransUnion). Some guarantor loan providers don't require minimum credit scores, while others may accept scores as low as 300-400 depending on other factors like income and employment.
Bad credit loan amounts typically range from £1,000 to £15,000, depending on the lender and your circumstances. Guarantor loans often offer higher amounts (up to £10,000), while unsecured bad credit loans may be limited to £5,000-£8,000 for first-time borrowers.
Guarantor loans require a friend or family member with good credit to guarantee the loan, offering lower interest rates (23.5%-49.9% APR). Other bad credit loans are unsecured but have higher rates (up to 69.9% APR). Guarantor loans typically offer better terms but put your guarantor at financial risk.
Yes, if managed properly. Making all payments on time and in full will gradually improve your credit score over 6-12 months. However, missing payments will further damage your credit rating and may result in additional fees and collection action.