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How to Get a Loan With Bad Credit

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If you have bad credit, it can be more difficult to take out certain types of loans. A lot of more traditional lenders require you to have a high credit score, especially if you’re trying to take out a large loan like a mortgage. So how do you get a loan with bad credit?

Types of Loan

Firstly, you should consider the type of loan you’re looking for. If you need a loan to cover a big expense, your options may be more limited if you have a poor credit history. In these instances, it may be best to approach a broker, who can try and find you a lender that isn’t too focused on your credit score. 

Alternatively, if you’re looking for a short term bad credit loan, for a smaller amount, there are a number of choices available. We’ve listed the main types of bad credit loans and solutions below:

Payday Loans

A payday loan is a type of short term loan that allows you to borrow a smaller amount of money to tide you over until your next payday. So if your car were to break down, and you didn’t have the funds to fix it, you could take out a payday loan to cover the cost. 

As you’re only borrowing the money for a short period of time, although the interest rates tend to be higher with payday loans, you probably won’t pay back that much interest overall. For instance, borrowing £100 for a week would only cost around £5 in interest.

Guarantor Loans

A guarantor loan is another good solution for those with a poor credit history. The main benefit of a guarantor loan is that the interest rate is usually comparable with traditional forms of credit, even if you have a low credit score. And if your guarantor has good credit, or is a homeowner, you have a high chance of being accepted for a guarantor loan. 

With these types of loan, your guarantor acts as your security. If you were unable to make the agreed repayments, they would make them for you. It can therefore not always be easy to find someone you trust to be your guarantor.

Credit Cards

While it may be hard to get 0% interest credit cards with bad credit, some credit card companies specialise in credit cards for bad credit. These cards often have a higher interest rate than those offered to people with good credit scores, but allow individuals with a poor credit history to borrow money when they need to.


If you’re considering getting a credit card, it may be worth checking whether the business has an eligibility calculator, to see how likely you are to be approved. And when it comes to comparing cards, Money Saving Expert has a lot of helpful tips and advice.

Key Points

Bad Credit Loans

Lenders that offer bad credit loans tend to focus more on your current financial situation than your financial history. They understand that nobody has perfect credit. Sometimes things can happen to mean you make late payments, lowering your credit score. And you shouldn’t be punished for something outside of your control, and may have happened years ago. 

Bad credit lenders are usually more concerned with things like your income and expenditure and employment history than your credit score.

Am I Eligible for a Bad Credit Loan?

Even if you have a low credit score, you should still be able to take out a bad credit loan. As mentioned, the interest rates can often be higher, but if you’re only borrowing the money for a few weeks or months, this won’t add up too much overall. 

The primary benefit of a bad credit loan is that they can be accessed by almost anyone. The main lending criteria for these loans is as follows:

As long as you have a regular income, and can afford to make the agreed repayments, you should be able to take out a short term loan, regardless of your credit history. To match with a lender likely to approve your application, you can use My Financial Broker’s completely free services and apply below!