You can apply for a loan when you're not a creditworthy person There are times when you'll need cash to pay for unexpected expenses or buy a car to work in. However, your options are limited if you have a credit score that isn't exactly stellar. There are still options. Based on your requirements, you may be able find a loan through a company that specialises in loans specifically for people with bad credit. There are a lot of lenders to choose from however, the issue could be in deciding on the best choice. That's the point where MoneySuperMarket is able to help. We have partnerships with companies all across the world. The "soft search" is a way to check your credit score and find whether you are eligible. Representative 23.3 APR % Money bag illustration The types and kinds of loans available to those with poor credit Everyone in the UK has a bank account that tracks their credit history. This is also referred to as your credit score and it is expressed in numbers. The higher your credit score the more reliable you're considered to be. If you've struggled to pay the credit card or loan charge in the past, this will be shown on your score and it will be more difficult to obtain loans in the future. Also, people from overseas or younger have no credit history. If you're one of them are one of them, you have options: Secured Loans These are the most commonly utilized option since the lender compensates for the higher risk by providing collateral. The borrower agrees to take the loan by placing up an asset that is valuable to them (usually their house or their car) which is then taken away if they default. Find out More Guarantor loans Guarantor loans are available to borrowers with poor credit scores who have no other options. They are usually backed by a relative or friend who pledges to repay the loan if the borrower falls behind. Because of the additional risk they carry, these loans typically have higher interest rates. Learn more Personal People with low credit ratings may be eligible for personal loans. There's typically a pretty strict limit to how much you can borrow, and you can anticipate more expensive APRs since without collateral or a guarantor, banks fear that you might default. These loans are often expensive in the long term. Find out more The credit score you have can allow you to get better deals Growing your credit score could give you a wider range of rates for loans to pick from. Credit Monitor provides a no-cost service to evaluate your score. Once you have done this, you will receive personalised tips to help you improve and keep your score. Find out my score Illustration of credit monitor How to deal with bad credit when obtaining a loan No loan is provided without risk, either to the lender or the lender. It is important to consider your options prior to applying for a loan. However, lenders may consider those with less credit scores to be more likely to default. There are a few items to consider: 1 Does the loan fit within your budget? A lower credit score indicates that you'll be offered higher interest rates and will be able to take out a smaller loan. Make sure the repayment plan will fit within your budget for the month Be aware that higher rates of interest mean that the loan is more costly overall. 2 Defaulting will be costly If you default, the consequences may be costly and could include collection agencies, forced repayment plans or even legal actions. Keep on top of your payments and you'll never be in any problems. 3 There are restrictions on the types of loans you can get Poor credit means that you're less likely to obtain loans for significant quantities. Because of the high rate of interest, it's sensible to establish realistic expectations regarding how much you can get. 4 Your credit score is important In evaluating your application for a loan, they will take into account your earnings, your home's equity (if it is to be utilized as security) and any outstanding loans you are currently paying. 5 We also consider other details The lenders will also take into account other aspects when evaluating your loan application like your earnings as well as the equity in your home (if you intend to use the equity as security) along with any outstanding debts that you are owed. 6 There are ways to increase your score If you are able to fulfill your repayment schedule in full and on time every month your credit score will almost certainly rise as time goes on. Credit bureaus are seeking evidence that people are able to borrow responsibly. How do you compare loan rates with MoneySuperMarket Find the most suitable loan available to you, and discover what rates are assured. It's not difficult. Let us know a bit about you, your financial situation and the loan you are looking for. We monitor the market We'll evaluate loans from various lenders Choose your loan You'll be able sort loans based on the total price and the chance that you'll be accepted If you have a pre-approved loan, you'll see exactly what you are getting. It's not always easy to figure out what deal you'll get or whether you'll be getting a loan. When you've been pre-approved for a loan you know the deal you see is the deal you'll receive - you'll know exactly where you stand with the right information to help you make the right decision. With conviction, apply You are pre-approved and the amount of the loan, the term, and interestrate will be verified. Customized to your needs When you know what you can borrow and the amount it will cost, youcan pick a loan that's suitable for you. You are safe in our hands. This can help protect your credit score since you're less likely to be rejected whenyou submit an application Compare loans How can I be approved for a loan with poor credit? Whatever credit score you have the process of getting a loan feasible in the same manner. You apply to the lender. When you submit an application, they'll determine your eligibility by looking at your credit score and circumstances. If you're a poor creditor it is likely that you'll be qualified to receive loan offers from companies which specialize in bad credit loans. Which is the easiest loan application? All of this is contingent on your particular circumstances. In some cases, if you own your home you may have a greater chance of being able to apply for secured loans. Guarantor loans can be a great option for people with low credit who have difficulty finding personal loans. However, they require the presence of a family member sign a guarantor agreement. What are the most effective ways to obtain a loan Online Loan for Bad Credit? It is very simple to determine if you're qualified for loans online. While some lenders may accept your loan fast but those with bad credit will have to undergo more thorough credit checks, which can sometimes take as long as 24 hours. You will be informed via email or phone to confirm that you've been approved.