Bad credit loans are designed for people with a credit report that's less than spotless, or who have little to no credit history. These loans typically have higher interest rates and greater restrictions than other loans, as this helps lenders reduce the risk of you not paying them back. However, they can be useful if managed
responsibly. Importantly, you won't find companies advertising 'bad credit loans' – this is just a common, unofficial name for them. Firstly, work out what you can comfortably afford to repay each month. Then compare loans with different companies to find
one that best fits your financial ability and needs. Just remember, we're a credit broker, not a lender†. That means we don't provide credit, but we can make your search for it easier, by helping you compare offers all in one place. Try to only apply for loans that you're likely to get, since each application will record a hard search on your report that can lower your score. It can be helpful to check your eligibility before you apply, to understand your chances of approval. You can see your eligibility rating for personal loans when you compare them with Experian – it's free and it won't affect your credit score. What’s the easiest loan to get with ‘bad credit’?It really depends on your personal circumstances. For example, if you’re a homeowner you may find it easier to get approved for a secured loan. Or if you have little or no credit history, a guarantor loan could be an option. But both these types of loan have risks and might not be right for you. So ‘what’s the easiest loan to get’ is the wrong question to ask. Instead ask: ‘What’s the best type of loan for me?’. If you’re not sure, have a look at the different types of loan – it’s important to know which type suits you before you apply. What is 'bad credit' and do I have it?How can I get better rates and higher limits?You could consider a loan with higher riskIf you're not willing to pay high rates, or you need a large amount, you may still be able to find a loan that fits your needs – even if you have poor credit. But usually, the trade-off is that you'll have to accept higher levels of risk. There are other types of loan for bad credit you may want to consider:
Try and improve your credit scoreYour credit score isn't set in stone – it's shaped by your financial behaviour, so you have the power to influence it. There are several steps you may be able to take to improve your score and increase your chances of getting the loan you want. You can check your Experian Credit Score for free, and it'll be updated every 30 days if you log in. And don't worry – checking your score won't affect it. Managing your loan repaymentsA 'bad credit loan' might come with high interest rates and low limits, but it can be an opportunity to improve your credit history by showing that you're a reliable borrower. Over time, sticking to the loan repayment schedule should start to boost your credit score, helping you get better credit deals in the future. Here are our top three tips for when you have a loan:
Compare loans with Experian Featured articlesImprove your credit scoreRead What's the easiest loan to get with bad credit?The easiest loans to get approved for would probably be payday loans, car title loans, pawnshop loans, and personal installment loans. These are all short-term cash solutions for bad credit borrowers in need. Many of these options are designed to help borrowers who need fast cash in times of need.
Can you get a loan with a 500 credit score?Lenders can consider giving a personal loan to a borrower with a 500 credit score. However, most lenders have preset requirements that help determine who can qualify for a loan. If you have a 500 credit score and need a personal loan, you should identify subprime lenders.
What is the lowest credit score for a loan?The typical minimum credit score to qualify for a personal loan is 560 to 660, according to lenders surveyed by NerdWallet. Some lenders may require a higher score. A high credit score doesn't guarantee you'll qualify or get a low interest rate.
Can I get a loan with a 524 credit score?A 524 credit score can be a sign of past credit difficulties or a lack of credit history. Whether you're looking for a personal loan, a mortgage or a credit card, credit scores in this range can make it challenging to get approved for unsecured credit, which doesn't require collateral or a security deposit.
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