What is a bad credit loan?

The term ‘bad credit loan’ means different things to different lenders. Whether or not lenders see you as someone with bad credit depends on their own lending criteria. Some lenders may see a person as ‘high risk’ because of their poor credit history, while other lenders may look at the same person as a good choice for lending to.

Getting a loan if you have bad credit

With a little extra thought and by approaching the right lender, you could borrow the cash you need – even with a less than perfect credit score.

Using our loans calculator

When you want to borrow money, the Loans at Home calculator will give you a clearer picture of your financial outlook by showing you the details of the loan. This handy tool also shows you exactly how much interest you’ll be paying.

If you have poor credit, it’s still worth taking a look at the calculator. Here at Loans at Home, we consider every loan application on its own merits and in some circumstances we can provide loans for people with bad credit.

Loan Calculator

Tell us the amount you want to borrow and over how many months you'd like to repay it, and we'll calculate how much your repayments might be.

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Ms F from Bacup

Things to consider if you have poor credit

If, over the years, you’ve developed a bad credit history, there are ways to rebuild your financial profile and help make it a little healthier. Each time you apply for credit, whether through loans, credit cards, mortgages or some other form of lending, the lender will run a credit report on you. It can be harder to get loans for bad credit because when a lender sees that your credit rating is low, they may see you as high risk. What also must be remembered is that each time you apply these searches will also show on your file.


What causes bad credit?

The way people have managed their finances in the past could be a factor as to why they have bad credit today. For example, if someone has taken out a personal loan and then failed to stick to the terms of their credit agreement, this will show up negatively on their credit report. Credit card or loan repayments that are missing or were late may also lower credit ratings. If someone has spent a long period of time only ever paying back the minimum amount each month on their credit card, lenders may see this as a sign of bad money management and a struggle to pay back debts. Other factors that may impact a person’s credit rating include having CCJs, or having been declared bankrupt.


What can I do to rebuild my credit rating?

Here are a few of the things people can do to help improve credit ratings.

  • Make sure you’re registered to vote. Lenders use the information on the electoral roll to check the details you give them about your name and previous addresses. Without these details they may become suspicious of your background and see you as a high risk for lending.
  • When you do borrow money, pay off the balance on time. If you’re approved for a loan, take the chance to rebuild your credit score by paying it back according to the agreed terms. That way, future lenders will see that you’re capable of managing your money and they’ll be more likely to lend to you.
  • Don’t try to borrow all the time. If you apply for lots of different loans and you’re rejected time after time, this will show up on your personal record as bad credit. Unsecured loans, personal loans, overdrafts, credit cards… if you have lots of failed applications for these then lenders will be reluctant to lend to you, pulling your credit score down even further.

FAQs about bad credit loans

If your credit history isn’t as healthy as it could be but you’re still interested in applying for a Loans at Home loan, here are some answers to the questions that may be on your mind.

  • Does bad credit mean I’ll be rejected for a loan?

    Even if you have what you think is bad credit, it doesn’t necessarily mean you’ll be rejected for a Loans at Home loan as we look at each individual’s circumstances.

    Will the credit check come up on my credit file?

    Yes, Loans at Home performs a hard credit check using Call Credit. When we do these checks a ‘footprint’ is left on your credit history.

  • Can I use a doorstep loan to rebuild my credit?

    In some cases new borrowing can be used to rebuild your credit score, as long as you stick to your agreed payment schedule