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How To Get The Best Loans For Bad Credit UK

A sudden cost or emergency can be stressful and challenging, primarily if you cannot obtain a loan. Unfortunately, bad credit loans can help anyone who has trouble getting regular credit products. 

We understand that everyone goes through periods when they have a real and justified need for financial assistance. We have mentioned the lenders who might provide the best loans for bad credit UK.

Best Bad Credit Loans For You

LenderRepresentativeLoan Amounts
118118 Money – Personal Loan49.90% APR£1,000 – £5,000
Likely Loans – Personal Loan59.90% APR£500 – £5,000
Oplo Homeowners – Personal Loan28.50% APR£2,000 – £15,000
  1. 118118 Money – Personal Loan

The brand name “118 118 Money” belongs to Madison CF UK Limited. With its loans, this lender allows you to borrow between £1,000 and £5,000. You can repay these loans over a one- to three-year period.

How much you need to borrow and how much you can afford to return will determine the size of the loan you apply for and the payback period you select. You can decide whether or not you qualify for a 118-118 loan without damaging your credit score.

The representative APR represents the highest rate that 51% of qualified candidates will get, meaning that 49% of applicants could be charged more. 

Your credit rating, the amount you wish to borrow, and the loan’s term will all impact the interest rate you are given. It is one of the best loans for bad credit UK.

  1. Likely Loans – Personal Loan

A lender called Likely Loans specializes in making smaller loans to borrowers with bad credit who might not be able to get one from a typical high-street bank. 

It was established in 2014 and is a subsidiary of Oakbrook Finance. This Nottingham-based company also provides more conventional loans for borrowers with better credit scores.

People with poor or very little credit can apply for rapid, unsecured loans from Likely Loans. If you’re having problems getting a loan, Likely Loans, a direct lender owned by Oakbrook Finance, may be able to help. It offers unsecured personal loans.

The company is a new player in the market for lending to those with bad credit, and its primary selling point is that it doesn’t require a guarantor. As a result, practically anyone may use the platform to apply for a loan.

  1. Oplo Homeowners – Personal Loan

The personal lending division of the Oplo Group, which also provides home loans and auto financing, is called Oplo (previously 1st Stop Personal Loans).

It provides homeowners with unsecured personal loans that can be used to pay off debts or finance purchases like a car or house improvements.

With an Oplo personal loan, you might borrow money for various purposes ranging from £2,000 to £15,000 and stretch out your payments over 24 to 72 months. So many significant purchases in life are feasible with these loans! 

Apply today for a decision within minutes, whether for your ideal wedding, a new automobile, or simply to combine other borrowings and regain control over your finances. It falls under the best loans for bad credit.

Best Loans For Bad Credit UK

What Are Bad Credit Loans?

People with bad credit who need money quickly but can’t get credit from a traditional lender may want to look into loans for bad credit, also called “poor credit loans.”

A person may have a bad credit score for several reasons, such as missing a payment on a prior credit agreement. Your credit score might also be impacted by handling a credit card responsibly or not making on-time phone payments. 

A lack of credit history could also make getting a loan challenging because lenders lack historical proof of your good money management.

Why does bad credit make it difficult to get a loan?

A poor credit rating makes it challenging to apply for any financial aid, such as a credit card or a loan. With so much information available on the internet, it is now very simple to compare the best loans for bad credit UK.

  • Lenders evaluate the risk of approving your application based on your credit history. 
  • The lender will immediately reject your request if they have any reservations about your ability to make your payments. 
  • Lenders must be sure they’ll get their money back and base their choice mostly on your credit history and score today. 
  • Conventional lenders, like banks, have definite policies regarding the kinds of people they will accept.

Advantages Of Bad Credit Loans

  • The most significant benefit of a negative credit loan is the possibility of receiving immediate cash into your bank account, possibly on the same day. Getting a loan right away and having enough time to pay it back can be helpful and encouraging.
  • Getting a loan with bad credit may give you the chance to raise your score. You show that you can responsibly manage funds by making your loan payments on time.
  • After receiving the funds, you can utilize the loan in any way you see fit, such as for DIY projects, house renovations, or car repairs.

Qualification Requirements for Bad Credit Loans

To be eligible for a loan with terrible credit, you must:

  • Age requirement of at least 18 years
  • A citizen of the UK
  • A minimal annual income

Most websites won’t run a hard credit check when you request a quote for a bad credit loan. However, they will probably run more checks once they are directed to their qualified lenders.

Frequently Asked Questions

1. Can you apply for a bad credit loan without checking your credit?

Ans. Although viewing your quotes won’t harm your credit score, a hard credit check will always be performed when you submit your application. This applies to all credit products equally.

2. Can I get a loan to help build my credit?

Ans. This is indeed possible. A loan can help you rebuild your credit score if you’re convinced you’ll be able to repay the repayments on time. Paying your bills on time each month is a vital sign that you’re a trustworthy borrower and raises your credit score over time.

3. Can I repay my loan early?

Ans. You can pay off your debt early in many cases, especially if it’s a personal loan. But you need to look at the loan’s terms and conditions to see if the Consumer Credit Act protects it.

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