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)
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.
How easy is it to get a loan with bad credit?
Easy’s a relative term here 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, say, a County Court Judgement (CCJ) last week.
2. Who you apply with. Some providers don’t lend to people with a bad credit history, others do. We don’t believe your past actions should shape your future so getting a loan with bad credit could still be easy with us.
To make things even simpler though, it’s well worth spending some time working on your credit score 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
- Stop making lots of 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
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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 found loans with rates from 2.6% to 26.3% APRC which has allowed us to help customers with a range of credit profiles.
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
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 score 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 payments 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 score 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 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 issue's only short-term and your lender is satisfied with your explanation, they might give you a bit of extra time to find the money. 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 which 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.
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. If you’re not, hold off.