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Practical tips to help you improve your credit rating and avoid expensive high interest loans

4 Ways To Get Personal Loans For Bad Credit

an image of a sign offering help

The bad credit personal loans market is one to be very careful of – high fees and interest rates can mean that a poor decision can turn out to be very costly.

To help you make the right decision we summarise here the four main types of personal loans for bad credit:

Loan 1 – Bad Credit Credit CardsAn image of a stack of credit cards

  • Works like any other credit card
  • Credit limits can be fairly low – typically around £1,500
  • Conditions regarding applications, e.g.. missed payments and CCJ’s may need to be a year or elder
  • Can take a couple of weeks to be approved for the card (or not!)
  • APR’s typically 35 – 40%

Bad credit credit cards can be a good option if you do not need to borrow too much and if your missed payments were over a year ago. Whilst they are more expensive than standard credit cards, the bad credit credit card is one of the most cost-effective bad credit personal loan options available.

To see how they can help to rebuild a credit rating, please click here.

Loan 2 – Guaranteed Loansan image of a 100% guaranteed sign

  • Personal loans typically from £50 to £10,000
  • Requires a friend or family member to guarantee your loan repayments
  • Interest rates typically around 700% APR for £50 to £500 loans, and 50% APR for £500 to £10,000 loans

If you cannot get a bad credit credit card, or need to borrow more than £1,500 then a guaranteed loan could be a good alternative; though you will require a friend or family member to back your application.

Loan 3 – Doorstep LoansAn image of someone knocking on a door

  • Unsecured short term personal loans where the lender calls at your home to collect the repayments
  • Fast cash available – typically up to £100 to £500
  • Loans available typically up to a year
  • Can have high-interest rates between typically about 275% and 550% APR

The doorstep loan is another option for a £100 to £500 loan. Some people are put off by the lenders’ agent coming to their home, but a doorstep is a cheaper loan option than a payday loan, especially if the loan is required for up to a year.

They have a much higher interest rate than a bank loan or a credit card. Find out more –

Loan 4 – Payday LoansAn image of a loan approval application

  • Unsecured short term personal loans available online and high street specialists
  • Fast cash available – typically up to £50 to £500 in 24 hours
  • Short term loans designed to be taken out for only a few weeks – typically up to 4 weeks max
  • Can have very high-interest rates up to 5000% APR

Payday loans have become widely used as they have been heavily advertised; whilst they offer a fast short term loan solution, they are very expensive, and should be taken out with great care.

Everyone has a different situation so we appreciate that there is no one type of loan that will suit everyone.

Find out if payday lenders really deserve the bad press they receive by clicking here.

Whilst we understand the urgency required on occasion, it is never worth risking your financial future for the sake of obtaining a loan that may cause more trouble than it saves. We can help you get a personal loan for bad credit through our range of some of the lowest APR loans available in the UK bad credit market.

Alternatively, see how much you can afford to borrow with our loan calculator.

Jon Edward
Jon Edward
Passionate about helping people find options, when on first glance there do not appear to be any.

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