Can I Get A Loan With Bad Credit?

You could get a loan with bad credit, and there are different types you could apply for. Just because you have a bad credit rating, does not necessarily mean you cannot secure a loan.

A secured loan could be a suitable option if you have bad credit. With an asset like a home or a car acting as security, the risk to lenders is reduced.

This means some secured lenders may not see your credit score as a decisive factor. So that could mean a better chance of approval compared with unsecured loans.

• An unsecured personal loan could be difficult to secure if you have a bad credit history.
• A guarantor loan requires somebody else to may any repayments that you can’t.
• Secured loans or secured homeowner loans involve an asset, such as a home, to act as security on the loan.
• Short term loans require quick repayment and come with high APRs.

Many types of loans are referred to as ‘bad credit’ loans – they’re aimed specifically at applicants with low credit scores.

Short term loans can be a suitable option for small amounts to be paid off within a month or so. Their APRs can be upwards of 500%.

Guarantor loans are available over longer terms than payday loans. They require somebody who trusts you to co-sign the loan. They would then have to repay the loan if the borrower wasn’t able to.

Secured or homeowner loans usually have the longest terms. They require an asset, like a home, to act as security on the loan.