The Home of Honest Lending

CCTA and FCA registered

Next payout in...


Short Term Loans

£50 - £995

Online decision

Responsible lenders

Rates from 278% to 1576%

3-12 month repayment

Personal Loans

£1k - £25k

Fast decision

60-sec Application

Rates from 4.7% to 287%

3-36 month repayment

Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed).
The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
† Subject to lender's requirements and approval. Not all loan amounts are eligible for 20 minute payouts. Your bank may increase the time you receive the money considerably.

Getting Private Loans with Bad Credit

Key points

  • A private loan is typically referred to a loan that doesn’t come direct from a bank or credit union.
  • If you have a bad credit score, or have been refused a bank loan before they can be a viable lending option.
  • The Department of Education typically offers student loans, but private options are also available if needed.

Bad credit isn’t something any of us choose to have. It’s often something brought on by circumstances beyond our control rather than carelessness or frivolity. Although it’s easy to get labelled as a risk’ once we have bad credit and it can be frustrating, not to mention embarrassing.

Those we apply for credit with can sometimes appear judgmental, even if they don’t mean to be and this can make us feel worse. What’s even more frustrating is every time we’re turned down for a private loan this hurts out credit ratings further.

So below is some useful information on where to turn if this scenario is one you’re familiar with:

Who are private loans for?

A private loan is essentially any kind of unsecured or personal loan. An agreement between the lender and a borrower. They are for everyone, but they come in all sorts of different forms. The better your credit rating the easier it will be to obtain such a loan. Those with bad credit may be turned away for private loans from traditional sources such as credit cards or bank loans. But there are other options in this day and age.

Small and local lenders

It’s amazing how many people don’t take advantage of local lenders in their area. These are small businesses that offer a variety of loan products to those who live within a certain mile radius. What’s great about small local lenders is while they still must obey the same laws as banks, credit card companies and other large lenders, they have more control over who they can lend to.

For example, because they are a small company, you’re much more likely to deal with a decision maker and explain your situation to them. They can get to know you and understand your situation on a more personal level than your bank may. They also don’t suffer from as much corporate red tape. This can work to your advantage if your someone with bad credit In need of a loan.

Credit Unions

Credit Unions are similar to small local lenders in many ways, but they are an organisation made up of members supporting other members. They are also considered more personal and lenient than banks when it comes to supporting those with bad credit. They may be able to help you get your credit built back up.

Credit Unions are known for their goodwill and helpful attitudes towards fellow members. They are often willing to work with people who have bad credit to develop a loan plan that suits them. Some people always use their Credit Unions when they need a loan instead of their bank and it’s easy to see why.

Online Lenders

The rise of online lenders in recent years has been a great way for those who have bad credit to get back on track. While payday loans had a bad reputation when they first arrived on the scene, they are not heavily regulated by the FCA (Financial Conduct Authority) and are as legitimate as another other form of lender on this list.

Payday loan companies generally offer smaller short-term private loans to people who are in need. Perhaps they need some urgent car repairs and have no money until their next pay day? This is where an online lender can come in handy. While interest rates are generally higher than average, it can’t be denied that online loan providers offer a service that lots of people find useful in a crisis.

They are also very lenient to those who have bad credit too. Using a payday loan can be an effective way to build up one’s credit rating again. By getting accepted and then paying the loan back those with bad credit can take advantage of their leniency.

Student loans

If you’re in full time education than student loans should be the only form of credit you apply for. Not only are the interest rates the lowest you’ll ever see, but they are willing to lend to people regardless of their credit rating. Providing you’re a student of course. Every student is able to borrow some form of student loan from the government, but how much depends on factors like your household income.

Students can also access private loans specially designed for them from other providers. These also have better rates than normal and are far easier to access and pay back than traditional private loans. If you’re a student in need of finance and have used your limit from the government, then consider these before any other private loan.

Borrowing from family, friends or employers

If you can borrow a private loan from someone you know personally then this may be preferable to borrowing from a company. There may not be any interest from friends and family members! And if there is it’s likely to not be much. After all, these are people who want to help you and have your best interest at heart.

Borrowing from employers can also be a good option. Like friends and family, they are likely to want to help you and be more lenient than traditional private loan providers. They may also see the loan as an investment in you as a worker, using it as a way to keep you around and help you achieve what you want to achieve. If an employer offers you a loan, it’s a good sign that they value you and your work. Pay them back by rewarding their good faith.

Secured loans

Secured loans are different to personal loans as they are attached to your property. But if you’re a homeowner with a mortgage, getting a secured loan through your mortgage company or another provider can be good option. Always remember though that a secured loan is tied to your home, failure to pay it back can result in your home being repossessed! So make sure to take these loans extra seriously, but if you already have a large loan with a lender and a good relationship with them, this may work out cheaper than to apply for a private loan elsewhere.