Bad Credit Loans – Get A Loan With Bad Credit

It’s a cold, December day and your old boiler has decided to go on the blink. It’s going to need replacing, but you’re weeks away from payday and you don’t have the savings to cover the cost.
In this situation, you might have wondered whether a loan could be a suitable option for you. If you have a history of poor credit, you might feel apprehensive about applying for a bad credit loan.

Here at Cashflex, we understand that searching for a loan can be intimidating, particularly if you lack confidence in your credit score.
Cashflex is a credit broker, and we work with a large panel of over 30 responsible lenders, several of whom specialise in loans for people with bad credit.
Cashflex could help you search for a short-term, personal bad credit loan from £100 up to £10,000.

What is a bad credit loan?

As the name suggests, a bad credit loan is a type of loan that could be available to someone with poor credit history.
Some lenders, including a number of those on the Cashflex panel, specialise in loans for those with bad credit, and could be willing to consider your application.
However, there are a number of things you should think about before you search for a bad credit loan.

Things to think about before you search for a bad credit loan

• A bad credit loan could come with a higher rate of interest, which will increase the overall cost of borrowing.


• If you have poor credit, you might not be approved to borrow as much money as you need and may have to apply for a lower amount.


• Carefully consider how much money you need to borrow and how long you’d like to borrow it for. A longer term will mean that you have more time to spread the cost of the loan, but you’ll pay more in interest. A shorter term will come with higher monthly repayments, but you’ll be charged less interest. Remember, you should never borrow more money than you need or can afford to repay.


• A loan will be repaid in monthly instalments, and these repayments will include interest. You must be sure that you can afford the monthly repayments and consider how you’d manage these if your financial situation were to change unexpectedly.


• A loan will impact your credit score. If you repay your loan on time each month and clear the balance before the term comes to an end, you could see an improvement in your score, although this will also depend on how you’ve managed other credit commitments during that time. On the other hand, if you make a late repayment or miss one completely, your credit score could decline.

Can I apply for a bad credit loan?

Each lender will have their own eligibility criteria, but typically, you may be able to apply for a loan if you:

• Are over the age of 18;
• Are a UK resident. Some lenders may require at least three years’ worth of UK address history;
• Have a UK bank account and valid debit card; and
• Have a regular source of income paid into your bank account.

You can use Cashflex to search for a bad credit loan if you meet the above criteria.

Check your eligibility before you apply

Are you concerned that your credit score could hold you back from getting approved for a loan? Try our free FastCheck tool.
In just 60 seconds, FastCheck can reveal your chances of approval, with no impact to your credit score.*

*If you choose to make a full application directly with the lender, they will carry out an affordability check. This will include either a hard search or Open Banking. A hard search will remain on your credit file for up to 12 months and multiple hard searches within a short period of time could have a negative effect on your credit score.

What’s Open Banking?

Open Banking is a secure procedure carried out by authorised and regulated third parties, such as lenders. Rather than relying on your credit history alone to make their decision, lenders who use Open Banking will access a read-only view of your online bank account. This will help to give them an idea of your recent financial transactions, and your spending and repayment habits. This information will assist in their decision-making when considering whether to lend you the money you’ve applied for.

Only you can choose who accesses your account through Open Banking and you can withdraw your consent at any time.

Will improving my credit score increase my chances of being approved for a loan?

A good credit score could mean that you’re more likely to be approved for a loan and may have access to more desirable interest rates, although this is not a guarantee. Lenders will carry out an affordability check on anyone who applies for credit, and this will include either a hard search or Open Banking.
If you’re hoping to work towards a healthier credit position, there are steps you can take, starting today.

• Register to vote.


• Pay your bills and any current credit commitments on time.


• Check your credit file and report any errors or outdated information.


• Keep your credit applications to a minimum. Multiple hard searches within a short period of time could damage your credit score.


• If you have a credit card, avoid using it to withdraw money from a cash machine.


• Stay well within your credit limit and keep your credit card utilisation as low as possible.*


• Know the facts when it comes to sharing a joint account with somebody who has bad credit. Did you know that being financially linked to someone, such as through a mortgage or bank account, could impact your credit score?

*Your credit utilisation is the amount of money that you’re currently using of your total credit limit and is shown as a percentage. For example, if your credit limit is £200 and you’re currently using £50 of this, your credit card utilisation would be 25%. If you’re looking to improve your credit score, the lower your credit card utilisation, the better.

How much money can I get with a bad credit loan?

Cashflex could help you search for a bad credit loan between £100 and £10,000, with repayment terms from 3 to 60 months, depending on the amount of money you apply to borrow.
As previously mentioned, a poor credit score could mean that you’re not approved to borrow as much money as you need, so you may need to compromise on the amount.

If approved for a bad credit loan, your money could be sent today, although this will depend on the payout timeframe of the individual lender. The time it takes for the money to appear in your account will depend on your bank’s policies and procedures.

Alternatives to bad credit loans

A bad credit loan won’t be suitable for everyone.
When faced with a financial emergency, it can be easy to panic; however, you should always stop and think very carefully about any options that may be available to you.
The last thing you want is to rush into a decision and end up with a product that isn’t quite right for you.

Could the expense wait? If so, you may choose to take a step back and save up the money instead. Yes, this will take longer, but you will save money on the cost of borrowing.
Is a family member or friend able to help you out? If you do borrow money from a loved one, it’s crucial to agree on a repayment plan or you could risk harming your relationship. You may choose to get this plan in writing.

What happens if I can’t afford to repay my bad credit loan?

Making a late repayment or missing one altogether could harm your credit score. If you feel as though you might miss an upcoming payment, or are struggling to make your payments each month, you should contact your lender as soon as possible.
They will listen to your situation with empathy and may be able to suggest things that can be put in place to help relieve some of the financial pressure.

I need help with my finances; can I get free advice?

Yes, you can. Whatever you’re going through, please know that you can access free, confidential advice through charities and organisations such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.