Adverse Credit Loans
If you’ve struggled with managing money in the past then you might be worried about securing credit in the future, and that’s where an adverse credit loan can help. We don’t believe in holding people’s past mistakes against them, so we could help you secure the funds you’re after today.
- Personal and Homeowner loans
- Loans for almost any purpose
- Won’t affect your credit rating
49.9% APR Representative (variable)
What is adverse credit?
Adverse credit is a way to describe a less-than-perfect credit history. If you’ve had difficulty keeping up with repayments on credit in the past - whether that’s a loan, credit card or even a mobile phone payment - this will show on your file and impact your score.
When considering any loan application, lenders will check your credit report and might view adverse credit as a red flag. That’s because it could indicate you’re not good at handling money, making it risky to lend to you again.
Don’t worry though, it’s not all doom and gloom. There are lenders who specialise in lending to people with adverse credit (and we’ll help you find them), whether that’s mortgage arrears or a CCJ. After all, everyone deserves a second chance, right?
How to apply for an adverse credit loan
Every lender’s application process will be slightly different, but with us, applying couldn’t be simpler and will look something a bit like this:
- Let us know how much you’re hoping to borrow and for how long,
- Give us a few personal details like your name, address and occupation,
- We’ll pop the info into our eligibility checker,
- You’ll get an answer there and then.
Our eligibility checker will give you a rough idea of how much you might be able to borrow and what your monthly repayments could look like. Better yet, it won’t affect your credit score.
Then, if you like what you see, you can continue with the application process and leave the legwork to us - we’ll scour our panel of trusted lenders to secure you the best possible adverse credit loan.
Try our loan calculator to see what your payments could be
The amount we show you is just an estimate. To get a personalised quote, we’ll ask for a few more details.
Estimated monthly payments:£0
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Representative Example: If you borrow £30,300 over 8 years, initially on a fixed rate for 3 years at 5.25% and for the remaining 5 years on the lender's standard variable rate of 4.85%, you would make 36 monthly payments of £429.77 and 60 monthly payments of £425.62. The total amount of credit is £33,630; the total repayable would be £41,008.92 (this includes a Lender fee of £300 and a Broker fee of £3,030). The overall cost for comparison is 8.40% APRC representative. This means 51% or more of customers receive this rate or better. We have found loans with rates from 2.6% to 26.3% APRC which has allowed us to help customers with a range of credit profiles.
Representative Example: If you borrow £1,800 over 24 months at an annual interest rate of 41.2% (fixed), Representative 49.9% APR, you would pay £111.28 per month. The total amount repayable will be £2670.72
How can an adverse credit loan help me?
There are a few ways securing an adverse credit loan could help you, like:
- Consolidating your debts - use your loan to pay off multiple outstanding debts and reduce stress with one lender and one repayment sum.
- Start rebuilding your credit score - by sticking to the terms of your agreement - i.e. making your repayments on time and in full.
- Securing funds - where you’ve previously been unsuccessful - at Ocean Finance, we won’t hold your past mistakes against you.
Frequently Asked Questions
What can I use an adverse credit loan for?
The short answer is, it’s entirely up to you! We’re here to help you secure an adverse credit loan and after that the world’s your oyster. You can use the money to consolidate existing debts and cut out the hassle of keeping up with monthly repayments, to pay for a holiday, a wedding, a car or whatever it is you need. Remember though, borrow responsibly and only ever as much as you need.
Can I get a loan if I’ve missed payments?
If your credit score’s patchy because you’ve missed credit repayments in the past you might be concerned you’ll struggle to secure money in the future. Don’t be. Adverse credit loans are designed for people with a less than perfect financial past and we specialise in finding loans for people just like you.
How will this loan affect my credit score?
Taking out an adverse credit loan will increase the amount of debt you have in your name (known as your credit utilisation ratio) and this will leave a short-term dent in your score. However, as soon as you start making your repayments on time and in full each month you’ll be boosting your score back up.
Will applying for an adverse credit loan show on my credit report?
Our soft search facility allows you to check if you’re likely to be accepted for a loan without affecting your credit score. So, you can have a look at how much you could borrow and how much it’s likely to cost you before you go ahead and apply with confidence. You will be able to see soft searches on your credit report, but only a hard search (which will happen when you complete the application) will affect your score.
Will an adverse credit loan be more expensive?
In some cases, lenders charge a higher interest rate in exchange for lending to people with adverse credit, and that’s because in their eyes they’re taking a risk. However, the interest you’re charged isn’t likely to be as high if your patchy credit is due to a missed phone repayment compared to having a CCJ, for example.