Bad credit loans
We specialise in loans for less-than-perfect credit. So whatever your score, we're here to help you.
- Secured and unsecured loans
- Quick and easy to apply
- No impact to your credit score to get a quote
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.
Personal loans: Ocean Finance is a trading style of Intelligent Lending limited. We are a credit broker working with a panel of lenders to find you a personal loan.
Homeowner loans are secured against your property. We are a broker and we arrange secured loans from a panel of lenders. We receive commission upon completion. A broker fee of 12% of the net loan amount capped at a maximum of £3,995 is payable upon completion and can be added to your loan.
How easy is it to get a loan with bad credit?
Easy is a relative term and there are a couple of things that’ll affect how likely you are to be accepted:
1. How bad your credit history is. For example, one late payment four months ago will have much less of an impact on your chances than a recent County Court Judgement (CCJ). You can check your credit score for free with our partner, CredAbility.
2. Who you apply with. Some providers don’t lend to people with poor credit, others do. You might find lenders who offer you credit at a higher interest rate. We don’t believe your past actions should shape your future so getting a loan with a bad credit rating could still be easy with us.
To make things easier, it’s well worth spending some time working on your credit rating before you start applying for any type of loan. Here are a few pointers:
- Stick to all your credit commitments on time and in full
- Reduce your credit utilisation ratio to around 25%
- Make sure you’re on the electoral roll
- Don’t make multiple applications in a short space of time
- Check your credit report for any errors.
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 anGet my quote
Representative Example: If you borrow £19,400 over 7 years, initially on a fixed rate for 5 years at 4.55% and for the remaining 2 years on the lender's standard variable rate of 5.50%, you would make 60 monthly payments of £313.60 and 24 monthly payments of £316.65. The total amount of credit is £22,523; the total repayable would be £26,415.60 (this includes a Lender fee of £795 and a Broker fee of £2,328). The overall cost for comparison is 9.6% APRC representative. This means 51% or more of customers receive this rate or better.
Arranged rates between 2.3% to 27% APRC. Repayment terms between 3 and 25 years.
Representative Example: If you borrow £1,500 over 18 months at an annual interest rate of 41.0% (fixed), Representative 49.7% APR (variable), you would pay £112.97 per month. The total amount repayable will be £2,033.46. We have arranged loans with rates from 2.8% to 99.9% APR which has allowed us to help customers with a range of credit profiles.
Representative Example: If you borrow £3,500 over 36 months at an annual interest rate of 37.7% (fixed), Representative 44.9% APR (variable), you would pay £163.65 per month. The total amount repayable will be £5,891.40. We have arranged loans with rates from 2.8% to 99.9% APR which has allowed us to help customers with a range of credit profiles.
Representative Example: If you borrow £5,000 over 36 months at an annual interest rate of 34.1% (fixed), Representative 39.9% APR (variable), you would pay £223.50 per month. The total amount repayable will be £8,046.00. We have arranged loans with rates from 2.8% to 99.9% APR which has allowed us to help customers with a range of credit profiles.
Can a bad credit loan improve my credit score?
Yes, depending on how well you use it, but the benefits won’t be immediate.
In the first instance, a bad credit loan could have a slight negative impact on your credit rating because it’ll a) increase the amount of credit against your name, and b) leave an application trace on your report (the more applications you made the greater the damage).
However, if you use your bad credit loan responsibly - and by that, we mean sticking to all your monthly repayments on time and in full - over time you could gradually improve your score and show lenders you’re less of a risk.
Learn more about how to improve your credit rating for good.
Bad credit loan advantages & disadvantages
- You’ve got more chance of being accepted for the credit you need - whether you’ve got a patchy history of managing money or not.
- If you stick to the terms of your agreement and repay your loan on time, you could actually improve your credit score and unlock more competitive offers in the future.
- With us, you could find out if you’ll be accepted before you apply, so your credit score doesn’t take a knock.
- Because you’ve got a bad credit history, there’s a good chance the interest rate you’re offered will be higher and this could make borrowing more expensive.
- Not all lenders accept people with poor credit histories so you may find you have fewer options to choose from - but quality over quantity, right? We’ve still got your back.
What happens if I don’t pay my loan back?
Hopefully, it doesn’t come to this, but if it does, the important thing is to act fast; the sooner you speak to your lender the better. Once you’ve brought your payment worries to their attention a couple of things could happen.
If you think the issues only temporary and your lender is satisfied with your explanation, they might give you a bit of extra time to find the funds. If you’re lucky, they might even agree not to report the late payment to credit reference agencies meaning your credit history stays intact.
When it looks like the problem’s going to be longer-term things can get a bit trickier. You should still speak your lender ASAP and then it could go one of two ways:
- They give you breathing space for a longer spell and point you towards organisations like Citizens Advice, Money Advice Service, National Debtline and StepChange.
- If they wanted to, they’d be within their rights to refer you to a collection agency, in which case a failure to receive payment could mean the matter is taken to court.
And remember, if you’ve taken out a secured bad credit loan your home could be at risk too. The lender can repossess your home under serious circumstances.
To avoid finding yourself in this position in the first place, you should only ever take out a loan if you’re absolutely certain you can afford the repayments throughout the timeframe of the loan.