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 with our loans for bad credit.

Here at Ocean, we specialise in finding the right loans for people with bad credit histories. Whether you require extremely bad credit loans or just have a less-than-ideal credit history, we’ll help you find the solution. We don’t rule borrowers out because of missed repayments, CCJs or sparse credit histories. Instead, we aim to find competitive rates so even those with a bad credit history can secure the finance they need.

Unsecured loans: 49.9% APR Representative. Ocean, a trading style of Intelligent Lending limited. We are a broker, not a lender. To find you a loan, we work with a preferred lender panel as well as panels operated by other brokers. We will search the lenders in order of who offers the best representative APR, first from our preferred panel and then from the panels of other brokers.

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. The good news is that with these loans for bad credit, no guarantor is required.

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, how much you want to borrow and whether no guarantor is a preferred requirement.

To apply for your loan, you’ll need to provide various personal and financial details before you’re presented with your poor credit loan options. Monthly payments and interest rates will vary for all of the loans with bad credit 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 10% of the net loan amount, set at a minimum of £995 and capped at a maximum of £3995 is payable upon completion and can be added to your loan. 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 bad credit loans 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, even reputable loan companies for bad credit. 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 and use reputable loan companies for bad credit.

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. However, if you need extra funds in the form of poor credit loans, then this can be hard to avoid.

Try our loan calculator to see what your payments could be

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

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Representative Example If you borrow £25,515 over 10 years at an annual interest rate of 6.5% (variable) you would make 120 payments of £329.03 per month. The total amount of credit will be £28,985. The total amount repayable will be £39,483.60 (this includes an average Lender fee of £495 & Broker fee of £2,975). The overall cost for comparison is 9.9% APRC Representative. Subject to status, the actual rate will depend on your circumstances.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

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

Sorry, we don't offer loans for

We offer Ocean Personal Loans from £100 to £10,000 and Ocean Homeowner Loans from £10,000 to £100,000

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

Ocean Personal Loans (£100 - £10,000) are available between 3-60 months only

Ocean Homeowner Loans (£10,000 - £100,000) are available between 3-25 years only