Get a loan with poor credit

It is believed that if you already have a poor credit history, you're more likely to struggle with debt, banks would rather avoid the risk by not lending to you; very few banks or mainstream lenders are willing to lend to people who've had financial problems in the past or those without a proven credit rating.

Not all lenders however hold that point of view; some, often small, lenders are happy to help people in such a situation by offering what are generally referred to as poor credit loans.

Your options

We all have different needs and aspirations; some may need a loan simply to pay off old debts, others may need a quick small loan to deal with an emergency, therefore different types of loans appeal to different people:

1. Secured Loans
If you own your own home this is the best option, having collateral means you can get the loan on a low interest rate despite having a poor credit rating. You can also borrow larger sums of money compared to unsecured loans, which are often limited to £25,000.

2. Unsecured loans
Not owning your home means the creditor relies sorely on you, a considerably bigger risk for them, but even being a tenant with poor credit does not prevent you from getting a loan, there are lenders who are willing to help you. Unsecured poor credit loans typically range from £250 - £25,000, since the amounts are small; the process is quick, making it especially convenient for people wishing to borrow small amounts of money.

The downside to poor credit unsecured loans is the very high interest rate compared to loans given to those with good credit. You can counter-balance this by paying off the loan quicker.