What is a bad credit loan?

Bad credit loans are designed for people with poor credit histories. If you’ve had problems keeping up with your repayments in the past which have left a mark on your credit history, you might find it more difficult to be accepted for a loan now – that’s where we may be able to help.

Here at Ocean, we specialise in finding the right loans for people with bad credit histories. We don’t rule borrowers out because of missed repayments, CCJs or sparse credit histories. Instead, we aim to give competitive rates so even those with a bad credit history can secure the finance they need.

Ocean personal loan comes with an APR of 44.9% APR Representative

What is a bad credit secured loan?

If you’re a homeowner and have a poor credit history you can secure a loan against your home, which gives the lender extra security in case you fail to meet your repayments. Because it’s secured against your home, your property will be at risk if you fail to meet your repayments.

How do bad credit loans work?

Bad credit loans work in the same way as any other loan. First things first, you’ll need to decide which loan is best for you: secured or unsecured. This may be determined by whether you’re a homeowner and how much you want to borrow.

To apply for your loan, you’ll need to provide various personal and financial details before you’re presented with your loan option. Monthly payments and interest rates will vary for each deal and may not be finalised until you’re accepted.

We arrange secured loans from a panel of lenders. We will receive a commission from the lender upon completion. A fee of 12.5% of the net loan amount, capped at £2975, is payable upon completion. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.

Is a bad credit loan for me?

If you’ve been turned down by high street lenders and are struggling to find credit elsewhere, a bad credit loan may be the right solution for you.

There’s no guarantee you’ll be accepted for a bad credit loan if you have a poor credit history. There are lots of other factors lenders consider when making their decision, such as your past money management; income; job security; age; profession; and how long you’ve lived in your home.

Things to consider with bad credit loans

If you have a poor credit history, lenders will see you as more of a risk. If you’ve struggled to meet repayments in the past or have little-to-no credit history to look back on, some lenders may turn down your application because they’re not confident you’ll keep up with your monthly instalments.

Because of this, interest rates for bad credit loans are likely to be higher than on loans designed for people with the best credit history. You should only take out a bad credit loan if you’re confident you can meet the monthly repayments. If you don’t, you risk causing more damage to your credit history.

Advantages and disadvantages of bad credit loans

The main advantage of a bad credit loan is that you’re able to borrow money even if you have a poor credit history. Another advantage is that a bad credit loan in itself could actually help to improve your credit history – providing you make all your repayments in full and on time.

On the flip-side, the key disadvantage of a bad credit loan is that the interest will be higher than on loans for people with a good credit history.

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.

Sorry but we don't offer loans of more than £250,000

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Representative Example
If you borrow £25,000 over 10 years at an annual interest rate of 9.4% (variable) you would make 120 payments of £366.22 per month. The total amount repayable will be £43,946 (This includes an average Lender fee of £495 & Broker fee of £2,975). The overall cost for comparison is 13.3% APR Representative.
Subject to status, the rate we offer you will depend on your circumstances.

Representative Example
If you borrow £3,000 over 36 months at an annual interest rate of 37.7% (fixed), Representative 44.9% APR, you would pay £140.27 per month. The total amount repayable will be £5049.72.

Sorry, we don't offer loans for

We offer Ocean Personal Loans from £2,000 to £5,000 and Ocean Homeowner Loans from £10,000 to £250,000

Sorry we can't help with this loan amount / term

Ocean Personal Loans (£2,000 - £5,000) are available between 2-4 years only

Ocean Homeowner Loans (£10,000 - £250,000) are available between 3-30 years only