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
We have 2 types of loan you can choose from. A personal loan from £1,000 - £15,000 or if you’re a homeowner, a secured loan from £10,000 - £100,000.
Are you a homeowner?
You can also borrow this amount as a secured loan, available over 3 to 25 years. Would you prefer this?

Personal loans: APR Representative (variable) Secured loans: 9.1% APRC Representative. You must be a homeowner to apply.

Coronavirus (COVID-19) update

Due to the recent coronavirus (COVID-19) outbreak, some lenders have temporarily paused offering loans through Ocean Finance to the market. We’ll be able to match you to loans still available, but there may be fewer options than normal.

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 a poor credit history (and we’ll help you find them), whether that’s mortgage arrears or a CCJ. After all, everyone deserves a second chance, right?

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How do I know if I have bad credit?

If you haven't seen your credit score, you can check your report through credit reference agencies such as Equifax, Experian and TransUnion. Lenders also use these companies to complete your credit check after you apply for a bad credit loan.

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 (the loan term),
  • 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 bad 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

Based on your loan request, you could be suitable for an

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How can a loan help me?

A loan designed for poor credit could help you in different ways, 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.

What’s the difference between a secured and unsecured loan?

Secured loans

A secured loan is exactly that, ‘secured’ to your property, and therefore you’ve got to be a homeowner to be eligible to apply for one. Lenders have more security because they know if you fail to make repayments they’ve got your home to fall back on. This can make it ‘easier’ to get a secured loan if you’ve got a poor credit history and also means there tends to be more money on offer.

With Ocean Finance, you could borrow between £10,000 and £100,000 with a secured loan for up to 25 years.

Just remember, if you fail to keep up with your repayments on a secured loan your house could be at risk. So if you’ve struggled with credit in the past it’s important you’re confident you’ll be able to make your repayments not only now but in the future as well.

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Unsecured loans

These are sometimes also called personal loans and that’s because they aren’t secured to anything but you. This can make unsecured loans trickier (but not impossible) to get your hands on if you have bad credit, because lenders don’t have the security net of your home as back up.

With an unsecured loan arranged by Ocean Finance, you could borrow between £1,000 and £15,000 for up to five years.

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What to consider before applying for a loan?

If you are considering borrowing but have a bad credit history, here are the things you need to think about before you apply:

  • You can check your eligibility before applying without affecting your score. However, you will need to undergo a full credit check before your application will be accepted.
  • Do you really need to take out a loan? Consider other borrowing options, like an overdraft or borrowing from a trusted family member.
  • You're not likely to find an interest-free loan. If you have poor credit, you will be offered higher interest rates.
  • If you do have bad credit, you may want someone to act as your guarantor to improve your chances of being accepted.
  • Your credit history will be affected further if you do not make your repayments on time and in full each month. If you miss payments, you’re also at risk of being charged additional fees and interest. In serious cases, you could be issued with a CCJ or risk your home being repossessed with a secured loan.

How to get a better interest rate?

If you have a bad credit history, you're more likely to be offered a higher interest rate - it's as simple as that. But after taking out a loan, if you make your monthly repayments on time each month, you will rebuild your credit history over time. Once this has improved, you should be offered a better interest rate in future.

How can I rebuild my credit score with a loan?

There are no two ways about it, when you first take out any loan it will have a small negative impact on your credit record, and that’s because one of the things that affect your score is how much debt you have in your name. By taking out a loan you’ll be increasing that total, but from then on it can start to improve your report.

Why? Because if you repay your loan on time and in full this will act as a little green tick on your record each month and demonstrate an ability to manage money.

Here are a few other things you can do to ensure your credit report is in tip-top shape:

  • Get yourself on the electoral roll by registering to vote
  • Check your credit file for errors and dispute any you find
  • Stick to any existing credit agreements
  • Don’t make lots of applications for credit over a short time
  • Make use of soft search facilities when comparing the market (they won’t affect your score).

After more on this? Check out our ultimate guide for lots more hints and tips on how to improve your credit score.

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.

Other types of loans we offer