Bad Credit Loans

What is a bad credit loan?

A bad credit loan is another name for a personal loan, which is suitable for customers who have poor or no credit history. People with poor credit history generally struggle to find a loan, but a bad credit loan can help them get approved.

Understanding bad credit loans

We’ve heard from many people who have missed occasional mortgage repayments, credit card payments or phone bills – which might have had an adverse effect on their credit score and subsequent loan application.

We know how frustrating it can feel, because there’s more to your situation than what a computer screen tells us. That’s why we’re committed to helping people with a poor credit history find a loan agreement that works for them, by looking at the whole picture.

If you’re looking to talk through your options for a bad credit personal loan, get in touch with us today – our friendly team will be more than happy to help.

What is a credit score?

A credit score is given by credit reference agencies to reflect how you have handled your financial commitments in the past through your credit file. Lenders use your credit score to determine how reliable you are when it comes to borrowing credit.

If you regularly miss payments like bills or rent, your credit score is lowered. If this happens, it can take a while to restore it to the level required by many banks and high-street lenders. Your credit file considers things like:

Borrowing history: A record of what you’ve borrowed and what you’re paying back, which goes back six years. This includes credit cards, utility bills and some forms of insurance. It also shows how good you are at paying money back on time.

Previous credit applications: If you’ve applied for credit before, there’ll be a record of the searches other providers have made. This doesn’t say whether or not your application was successful, or whether you borrowed the money, but it does show whether you make a lot of
applications or credit searches close together, so try to avoid this.

Public court records: Things like County Court Judgments (CCJs) or bankruptcies will show up on your credit file, and may make it more difficult to get finance.

You can contact one of the three main credit agencies in order to see your credit score –everyone can see their current credit score for free, so you know where you stand.

If you’re worried that your credit score means you’ll miss out on getting an affordable loan, there are plenty of other people in the same boat – and we do our best to help our customers get the loan that’s right for them.

How to improve your credit score

If your credit score needs improvement, there are things you can do to demonstrate good financial behaviour to lenders. Paying your bills on time, registering on the electoral register and getting your name off any old billing accounts you shared with ex-housemates or former partners can all contribute to improving your score.

Securing a loan with poor credit

Lots of people find they are in need of a loan, but have a poor credit score. Progressive Money may be able to help. We offer loans for people with bad credit, offering complete transparency when it comes to the loan duration, fees and charges.

We try to take a range of factors into account, including your current financial outlook, when coming to a final decision. Our bad credit loans experts never rely solely on automated credit checks – we look at the whole picture, taking you and your individual circumstances into account. This approach sets us apart from other lenders, and has already allowed us to help thousands of people get the help they need.

We might be able to help, as long as you are:

• Aged 18-70
• A homeowner
• Employed or self-employed
• Living in England, Scotland or Wales
• Able to afford monthly repayments comfortably from your regular income

We offer personal loans from £1,000 up to the value of £15,000, with flexible personal loan repayment periods from 18 months up to 10 years. Our friendly and helpful team of advisers is on-hand for everything from your first discussion, right through until the moment the money goes into your account. If you have any questions during your loan term, your personal account manager is only a quick call away.