Bad credit loans
Here at Ocean Finance, we specialise in loans for bad credit. Even if you have a less-than-perfect credit history, we may be able to help you.
- Personal and homeowner loans
- Quick and easy to apply
- Loans for almost any purpose
49.9% APR Representative (variable)
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What is a bad credit loan?
Bad credit loans are like any other loan – except they’re specially designed for people with less-than-perfect credit. If you’re finding it tricky to get accepted for credit and keep being turned down by lenders, a personal loan for bad credit could be the answer. Here at Ocean Finance, we make it our mission to help people with lower credit scores find the finance they need.
Without a crystal ball, it’s hard to tell what life has in store. An unexpected bill, a faulty boiler on the blink or even a family emergency could throw you off track in an instant. And if you don’t have a great credit history, finding the money to cover those surprise costs can be pretty tough – not to mention stressful. That’s where our loans for bad credit can provide a helping hand where you need it most.
There are loads of reasons why you might want to take out a loan. Got your eyes on a new car? Does the kitchen need sprucing up? Looking to consolidate your existing debts? Maybe you’re even planning your dream wedding? Like any other loan, poor credit loans are a safe way to borrow – as long as you stick to your monthly payments.
One way to make sure you get the best deal and service is by only applying to a loan provider that you can depend on. That’s why, when we look for your loan, we’ll only ever search from a panel of trusted UK lenders – so you can find credit with a company you trust.
Unsecured loans: 49.9% APR Representative (variable). 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 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.
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.
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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 helped people with rates from 2.6% APRC to 26.4% APRC.
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
Why do I need a bad credit loan?
You may need a loan for poor credit if your credit rating is a little worse for wear. One way to tell is if you’re always being turned down by high street lenders. Your ‘rating’ – or credit ‘score’ – is a number used to help banks and lenders decide if you’ll be accepted for credit. The higher this number is, the better your score will be.
Your score is based on your credit file. This is like a financial CV covering the last six years. It includes lots of information like where you’ve lived, who you’ve worked for and your marital status. Not only that, but it also shows whenever you’ve applied for credit. It could’ve been for anything from a credit card to a loan or even a mobile phone contract.
Having ‘bad’ credit is a way of saying that your credit score isn’t great for whatever reason. It tells lenders there is something from your credit file that may put them off.
Do I have bad credit?
If you think you have less-than-perfect credit, there are many reasons why this could be the case:
- Being late/missing payments on a mortgage, credit card, loan or a bill
- Applying for lots of credit in a short space of time
- Having lots of outstanding debt
- Having defaults or County Court Judgements (CCJs) against your name
- Being declared bankrupt
- Being the victim of identity theft
- Not applying for credit before
How can I find my credit score?
You can find out your credit score from the three main UK credit reference agencies:
It’s free to check your credit score and, with Equifax and CallCredit, you can gain unlimited access to your credit file, too. Bear in mind they each work out your score for you using the different bits of your information they choose to use, which is why your credit score will vary from agency to agency.
Why can’t I get a loan with bad credit?
Banks and lenders use information from credit reference agencies to work out their own score. This is how they decide who to lend to. If you’ve got a poor credit history, your credit score will be lower. To a lender, this could mean the risk of you not sticking to your monthly payments is higher. And this means they could be less likely to accept you for a loan – particularly one with lower interest rates.
Can a bad credit loan improve my credit score?
Taking out a loan for poor credit doesn’t improve your score right away – in fact, you could make your situation worse by applying for too many loans. But what will help improve your credit rating is using one of our trusted lenders and making your repayments on time. It’ll prove you can manage your money responsibly and show future lenders you’re less of a risk.
What are the advantages of a bad credit loan?
A huge plus point of a poor credit loan is that it lets you find the finance you want – even if you have less-than-perfect credit. Typically, poor credit loans have a higher approval rate than other loans you might see. And that’s great news when you need money in a hurry.
Don’t forget that sticking to your payments works wonders for your credit score, too!
At Ocean Finance, we’ll also show you if you’re likely to be accepted for a loan before you apply – so checking won’t hurt your credit score. And you’ll even be able to apply for your loan on our chosen partner’s site in confidence, too!
What are the disadvantages of a bad credit loan?
With poor credit, you won’t be able to get the same low interest rates as someone with good credit. The interest rates on a bad credit loan are higher because lower credit scores are a bigger risk to lenders. There are also fewer lenders for you to choose from when you’re looking to get finance, as you’ll be limited to those lenders who help people with bad credit. With our panel of reputable loan companies, you’ll only ever receive the best service.