How to get a Loan if you Have Bad Credit?

There are loans out there for people with bad credit, if you know where to look. You are unlikely to get a bad credit loan from a high street lender such as your bank.
It could be the case that you have missed a few mortgage payments, or maybe you forgot to pay your credit card or phone bill on time. Its sounds crazy but this can lead to your credit rating getting worse. You may also have more difficult credit issues such as Count Court Judgements against you, or you may have been bankrupt.

What is a bad credit loan?

Bad Credit Loans have been specifically designed for those with a bad credit rating. Sometimes these are also referred to as adverse loans. They are the same as a standard loan; however, they tend to have higher interest charges, purely because you are seen as a higher risk to the lender.

What do I need for a bad credit loan?

As you will be seen as more of risk with bad credit than someone with a good credit rating, you will have a higher interest rate than a standard loan and security may be asked for.

Can I check if I have bad credit before I apply?

Before you make an application for any type of loan or credit, you should always check your credit report. There are a number of agencies that you can use to check your credit report, but Noddle will provide you with a free report that won’t affect your credit rating.
It is also very important to check with any loan companies to make sure they do a soft footprint report. Using soft print means your credit history can be checked without leaving any trace, so your credit rating will not be affected.
You will be able to see the check, but it will not be visible to anybody else checking your credit rating. This is very, very important, as having a number of searches on your record credit record can cause your credit score to decrease. When applying to a loan company for a bad credit loan, it is important it doesn’t appear that you are applying in a panic to everybody.

Causes of my bad credit report?

There are many things that can contribute to getting you a bad credit rating:

  • Forgetting to pay loan payments,mobile payments and credit cards.
  • County court judgements
  • Bankruptcy, voluntary arrangements etc.


How to get a loan with bad credit?

Before filling out a loan application, check your credit report, to assess your credit history situation. A negative report will mean you need to look for certain types of lenders such as @pledge. Also investigate at a wide range of loans, as there are a huge amount of different types of loans available, some lenders may not even check your credit rating. Having a bad credit rating will affect the amount of options you have, but it is better to be realistic and find the correct options rather than wasting your time.
Investigating a large range of loan providers is very sensible. A specialist in bad credit loans such as a broker or intermediary will automatically widen your search for you. Brokers can access a lot of loan deals and will be able to find you the best deals in the market place.

Will I need to pay any fees?

This changes from lender to lender. But most direct lenders won’t ask you for any costs in advance before they check they can get you a loan, but brokers may. Once a suitable loan is found a fee may be due.
Before entering into any loan search, you should check what the costs are. All providers legally must make you aware of any costs or payments to third parties.
If you have a bad credit score and would like to know how much it would cost for a short term loan, why not chat to us online (at the bottom of the page), give us a call on 0800 810 1111 or 01604 901101 or fill out our contact box.
The @Pledge Finance Team.