Loans for Bad Credit
Struggling to find loans for bad credit? Lending Stream could help. We believe everyone deserves access to funds, regardless of their credit history. We’re an FCA-authorised direct lender, offering loans from £50 to £800 for new customers and £100 to £1500 for existing customers. Apply online today, even with a bad credit score.
Representative Example: Given a Representative APR of 1271%, if you borrow £300 over 6 months at 292% p.a. (fixed), you would owe 6 equal repayments of £96.39. You will repay £578.36 in total.
Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk.
Why choose Lending Stream for bad credit loans?
Trusted
Rated excellent on Trustpilot & 99% recommendation rating on Reviews.co.uk.
Convenient
Secure online application available 24/7. A decision in seconds, not days.
No early repayment fees
Repay in 6 monthly instalments. We don’t charge for early repayment.
Fast
Cash sent to your bank in under 90 seconds, if approved. It may take longer to reach your account depending on your bank’s processes.
Lending Stream is FCA Authorised
Lending Stream has been helping customers in the UK since 2008. Since then, we have helped over half a million people with their financial needs by lending over 2.5 million loans. We’re an FCA-authorised and regulated direct lender, with authorisation number 689378. Responsible lending is our biggest priority, and we want to ensure our customers’ experience is great.
We believe in ensuring that you are fully informed about the costs, fees, and repayment terms of our loans. To achieve this, we have taken great care to present all charges, including interest rates and fees, upfront. No hidden costs or unwelcome surprises – everything is clear and easy to understand.
What are bad credit loans?
Bad credit loans are designed for individuals with a poor or limited credit history. These loans offer a way to borrow money even if your credit record shows financial difficulties. Unlike traditional loans, they focus more on your current ability to repay than on your past credit score.
Bad credit loans come in various forms, including unsecured loans, short term loans, and emergency loans, providing flexibility to suit different financial situations and needs. These loans can be a helpful resource for handling emergencies or working toward rebuilding your financial stability.
When applying for a loan, your credit score is one of the key factors that direct lenders consider. In the UK, there are three primary credit reference agencies that provide credit scores: Experian, Equifax, and TransUnion. Here’s a breakdown of how credit scores are classified by these agencies:
| Credit Score Range | Very Poor/Poor | Fair | Good/Very Good | Excellent |
|---|---|---|---|---|
| Experian | 0-720 | 721-880 | 881-960 | 961-999 |
| Equifax | 0-438 | 439-530 | 531-810 | 811-1,000 |
| TransUnion | 0-565 | 566-603 | 604-627 | 628-710 |
Eligibility criteria for bad credit loans with Lending Stream
If you are looking to check your eligibility to apply for a bad credit loan with Lending Stream, then you must:
- Have a valid debit card
- An active UK bank account
- Be a UK resident
- Should be at least 18 years old
- Should be in regular employment with a monthly income of at least £400
As part of our online application process, we may ask you for proof of your income to see if you can make payments on time.
Representative 1271%APR
How to apply for a bad credit loan online with Lending Stream
If you are looking to apply for a bad credit loan with Lending Stream, then you must:
- Enter your personal details
- · Choose the amount you want to borrow with us
- · Provide us with your employment, salary, expenses, and banking details
Once we receive your application form, we will run affordability and credit checks on your profile. If approved, we’ll send the cash to your bank within 90 seconds. It may take longer to reach your account depending on your bank’s processes.
Representative 1271%APR
How much money can I borrow if I have very bad credit?
The loan amount you can get with very bad credit depends on the lender and your financial situation. Generally, borrowers with poor credit can access smaller loan amounts to reduce risk for the lender. Some direct lenders in the UK offer loans starting from £50 up to £3,000, depending on your repayment ability and whether you’re a new or existing customer.
Factors such as your income, current debts, and repayment history also play a role in determining the loan amount. At Lending Stream, we offer bad credit loans credit ranging from £50 to £800 for new customers and £100 to £1500 for returning customers.
How do bad credit loans work?
Bad credit loans are designed to help individuals with poor credit history access funds. Here’s how they work:
Application
Borrowers complete an online application, providing details like income and expenses. A credit report may be checked to assess financial stability.
Approval
Lenders evaluate your ability to make the loan repayments. Approval is based more on your current financial situation than a poor credit score.
Loan Disbursement
Once approved, funds are deposited directly into your bank account.
Repayment
You repay the loan through fixed monthly instalments over an agreed period. Making timely repayments can help improve your credit score.
Bad credit loans offer flexible options for those in need of financial support and a chance to rebuild their creditworthiness.
What can a bad credit loan be used for?
A bad credit loan can be used for various purposes, including urgent home improvements, car repairs and unexpected expenses. These loans may also help to rebuild your poor credit history by making timely repayments.
However, it is important to consider the cost of the loan carefully and whether it’s the best option for your financial situation.
Will applying for a bad credit loan affect my credit rating?
Applying for a bad credit loan can affect your credit rating, depending on the type of credit check performed. A soft credit check, usually done during the initial application process, does not impact your credit score. However, a hard credit check, which happens when the loan is finalised, is recorded on your credit file and may temporarily lower your score.
Multiple applications to other lenders in a short period can also negatively affect your credit rating. Borrow responsibly and ensure timely repayments to maintain or improve your credit score over time.
Alternatives to bad credit loans
1. Personal loans
A personal loan is an unsecured loan that lets you borrow money without using any assets. It’s repaid in fixed monthly instalments, making it a good option for individuals with a steady income even if their credit score isn’t perfect.
2. Secured loans
A secured loan lets you borrow money during financial difficulties by using an asset, such as a car or property. Unlike unsecured personal loans, secured loans often come with lower interest rates and more flexible repayment terms. However, it’s important to manage the loan responsibly to avoid risking your collateral.
3. Guarantor loans
A guarantor loan requires a trusted individual, such as a friend or family member, to co-sign the loan agreement. This person agrees to cover the repayments if you’re unable to, making guarantor loans an option for borrowers with poor or very poor credit ratings.
4. Payday loans
Payday loans are short term loans designed to cover urgent expenses until your next payday. These unsecured loans typically come with higher interest rates and shorter repayment periods, making them suitable for small, immediate financial needs, even if you have a bad credit score.
FAQs – loans for bad credit
Is Lending Stream a bad credit loan direct lender?
Yes, Lending Stream is a direct lender for bad credit loans in the UK. As an FCA-authorised lender, we provide loans directly to individuals with the loan transferred directly to your bank account. This ensures a transparent process with no hidden fees.
Can I get a bad credit loan from a direct lender in the UK?
Yes, you can get a bad credit loan from a direct lender in the UK. Direct lenders streamline the process by cutting out brokers and working directly with borrowers. They prioritise your current financial situation over your credit history, offering flexible repayment options and loans designed for individuals with poor credit. This makes them a practical choice for those needing quick access to funds.
Who can benefit from loans for people with bad credit?
Loans for people with bad credit are designed for individuals who have difficulty accessing mainstream loans due to a low credit score. They can be particularly helpful for covering unexpected expenses or urgent repairs. However, these loans often come with high interest rates. If not managed carefully, they can worsen your financial situation and further impact your credit score.
Can you get a loan with bad credit and no guarantor?
Yes, you can get a loan with bad credit and no guarantor. Some lenders in the UK offer unsecured loans specifically for borrowers with poor credit. These loans focus on your current ability to make monthly repayments rather than relying on a guarantor. While they’re a practical option for those who prefer not to involve a family member or friend, it’s important to note that they often come with higher interest rates.
What is the easiest loan to get with poor credit?
The easiest loan to get with poor credit depends on your individual circumstances, including your income, credit history, and financial needs. Generally, payday loans, secured loans, and guarantor loans are more accessible options for people with bad credit scores. The best choice will vary based on what suits your situation and repayment ability.
Can I get a bad credit loan with no credit check?
Most FCA-registered companies conduct credit checks as part of their standard procedures, although it is not a mandatory requirement. The decision to perform a credit check typically depends on the nature of the services being provided and the individual company’s policies.
How fast can I get a loan for bad credit?
The time it takes to get a bad credit loan depends on the lender’s processes. Some lenders offer fast approvals, with funds deposited into your bank account within a few hours or minutes after approval. However, the speed can vary based on factors such as accurately completing your application, submitting the required documents, and meeting the eligibility criteria.
Can I borrow money with very bad credit from a direct lender?
Yes, you can borrow money from a direct lender with bad credit, but expect higher interest rates and fees. Some lenders may offer secured loans or require a co-signer. Be cautious of payday loans, as they can be expensive and difficult to repay.
Can I get a bad credit loan for an emergency?
Yes, you can get a bad credit loan for an emergency. These loans are available to people with poor credit scores. However, they may come with higher interest rates due to the increased risk for the lender. It’s important to compare different lenders and ensure the repayment terms are manageable. This will help you avoid further financial strain.
Can a bad credit loan improve my credit score?
Yes, a bad credit loan can improve your credit score if you make timely repayments. A good credit score is built on consistent repayment behaviour. By sticking to the agreed repayment schedule and avoiding late payments, you show reliability to lenders.