Bad Credit Loans

Proper Finance can help you find bad credit loans ranging from £10,000 to £500,000 over a 3 to 30 year period. If you have been turned down for loans in the past due to bad credit, we work with secured lenders to help you use security such as your home or flat to borrow the money you need.

Proper Finance is a price comparison website and we help you to compare rates across the UK market for a range of financial products. For loans with bad credit, we are partnered with Lending Expert who work with a number of FCA regulated lenders.

You can check your eligibility by filling in our online application for a bad credit loan. Simply click the “apply now” button below to start your application.

Why Do People Need Bad Credit Loans?

At Proper Finance, we appreciate that not everyone has a perfect credit score and there are life’s little emergencies that crop up and make it hard to stay on top of our finance, especially with rising living costs.

But just because your credit score is not perfect and you may have bad credit, it doesn’t mean that you still can’t access finance to live your life to the fullest, whether it is for:

• Car repairs
• Home repairs
• Paying a friend
• Paying childcare
• Funeral expenses
• Student loans
• Tax bills
• Business expenses

To be eligible, a customer may be able to borrow money using an asset such as property. Based on your property’s value, you may be able to borrow a percentage of its value through a secured loan and get a loan with bad credit that you need.

What Bad Credit Loans Can I Get?

If you need a loan with bad credit, you might be eligible for a secured loan (also known as a homeowner loan) if you own a home that can be used as security. This includes flats, bedsits, bungalows, cottages, houses and any kind of property. This type of finance allows you to get money upfront and with rates from just 6.5% APR, but be warned that your home may be at risk of repossession if you cannot repay.

With added security, the lender feels more confident that they can recover their loan if you are unable to pay, so the eligibility is usually a lot less strict and the rates can be a lot more reasonable, starting from just 6.5% APR (depending on the lender).

Can Bad Credit Loans Improve My Credit Score?

Yes, bad credit loans can improve your credit score, however this is only assuming that the borrower keeps up with the loan repayments consistently over time. When this happens, the borrower begins to build up a history of healthy borrowing behaviours, which the CRAs (Credit Reference Agencies) such as Experian acknowledge, leading to a boost in your credit rating.

Whilst bad credit loans can improve your credit score, it’s important not to apply for too many in a short period of time – since doing this can actually be a deterrent to future lenders, as it may suggest you are too reliant on credit or in desperate need of funds.

Similarly, if you cannot keep up with the repayments on the bad credit loan, this can also restrict your chances of borrowing in the future. Failure to keep up with repayments on a loan and can also damage your credit rating.

What is the Eligibility Criteria?

Although bad credit loans are known for having a lower level of criteria than other forms of loans (i.e. not requiring a good credit score), as with any form of borrowing there are certain requirements that you must meet.

The main borrower will usually have to meet the following requirements for a bad credit loan:

• Be in full-time employment 
• Be a UK resident
• Have a valid debit account
• Be over the age of 18
• Use security in the form of your house or flat
• Be able to afford monthly repayments
• Employed and earning a regular income

Why Should I Apply for a Bad Credit Loan?

A bad credit loan can provide numerous benefits, helping those who have struggled to access mainstream finance such as credit cards and personal loans. When you have no other options, bad credit loans can be vital to pay for emergencies, school fees, debt consolidation or anything else important in your life.

In addition, bad credit loans can also help those with a bad credit score to start building up a good history with borrowing, which can subsequently lead to improving their credit score.

Why Apply With Proper Finance?

At Proper Finance, we work with an esteemed broker partner, Lending Expert, who compares rates and terms from several FCA regulated lenders across the UK, meaning that any loan you find through our site is safe, secure and well regulated.

We are proud to work with direct lenders so that your application is in safe hands from start to finish.

Our online application only takes 5 minutes to complete, is free to use and our partners will come back to you as quickly as possible. Once approved, you could also receive funds within a few days.

How Can I Apply for Bad Credit Loans?

You can find great bad credit loans through Proper Finance. Simply click the “apply now” button and fill in our online application form.

When completing our form, you’ll have to fill in a few personal details, including the following:

• Your name
• Your current address
• Your date of birth
• Your contact details