Loans for bad credit

  • Personal, homeowner and debt consolidation loans
  • Check your eligibility in minutes
  • Getting a quote won't affect your credit score

What is a bad credit loan?

This is a loan designed for people with a poor credit score. Having poor credit can make it harder to borrow, but there are still plenty of options out there from specialist lenders.

A bad credit loan works just like any other loan - you borrow a certain amount and pay that back in set monthly instalments (which include the loan balance and interest). You can use your loan for almost any purpose, including an emergency, home improvements or debt consolidation.

Taking out a loan is a big decision. You need to find the right option to ensure you can keep up with the repayments. Bear in mind that with a secured loan, the money is borrowed against your home, so if you fall behind with your repayments your home could be put at risk (in the worst-case scenario).

Loan types: What are the best loans for bad credit?

There are several loan types for bad credit, including:

Secured loan

This is money you borrow against your property, so you must keep up with the repayments to stop your home being at risk.

You can often borrow more money, for a longer time and at a lower interest rate with a secured loan (compared to a personal loan) – but you must be a homeowner to apply.

At Ocean, we work with a panel of lenders to find the best rates for secured loans of £10,000 to £500,000 over 3 to 30 years.

Debt consolidation

These are loans specifically for consolidating your existing debts. This means combining your current repayments into one monthly repayment – often at a lower rate than you’re currently paying. If you struggle with multiple payments, this can be a good option, but bear in mind that you could pay back more overall, over a longer period.

At Ocean, it’s possible to get secured or personal debt consolidation loans for bad credit.

Personal loan

A personal loan isn’t secured to anything, so the rate you’ll receive depends more on your credit history and affordability.

There are many bad credit personal loans available, but you may pay a higher interest rate than with a mainstream lender.

At Ocean, we offer personal loans of £1,000 to £15,000 over 1 to 5 years

How to check your eligibility for a bad credit loan

See if you're eligible in four simple steps - without affecting your credit score.

  1. Click 'Compare loans' and select how much you want to borrow and for how long
  2. Fill in our quick and easy form
  3. We’ll search 100s of loans to see what's right for you
  4. View your quotes – these will either be personal or secured loan quotes, depending on how much you want to borrow and if you’re a homeowner

To check your eligibility, we just need your contact, income and employment details.

How long does it take to get a loan?

This depends on the type of loan you apply for.

Personal loan

Applying online for a personal loan is quick and easy. You can sometimes even have the money in your bank account the same day. 


Secured loan

The secured loan (or homeowner loan) application process takes longer due to extra checks and paperwork, but using our app to submit documents can speed up the process.

3-4 weeks

Does a bad credit loan affect my credit score?

  • Like any borrowing, a bad credit loan can have a positive or negative impact on your credit score – it all depends on how you manage repayments.

  • If you keep up with your repayments on time, each month, this can have a positive impact on your credit score and cause it to increase over time.

  • However, if you miss payments or are late, this will have a negative impact, further lowering your score. 

How to improve your credit rating for a loan

There are plenty of things you can do to boost your credit score, but here are a few general tips.

  • Keep up with existing payments. Late or missed payments can adversely affect your credit score.
  • Limit applications – if you’re shopping around, use eligibility checkers to see your options. Remember, every time you make a credit application, the lender will run a hard search on your credit report, which can cause a temporary dip in your credit score.
  • Register on the electoral roll – if you haven’t already, register to vote. It only takes about five minutes online.
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If your credit history is less-than-ideal, a bad credit loan may help you secure the finance you need. Just make sure you can afford the repayments over the whole loan term, as interest rates tend to be on the high side.”

Adele Kitchen, Personal Finance Writer

How could we help you?

Ocean has provided access to loans, credit cards and mortgages to people across the UK since 1991. In this time, we’ve pre-approved more than a million people, offering products and advice to suit their circumstances.

  • All credit histories considered

  • Check your eligibility without affecting your credit score

  • Save time finding the right loan deal

You can learn more about Ocean on our about us page.

Homeowner loans are secured against your property. This means your home may be at risk if you fall behind with your secured loan or mortgage repayments.

Remember, if you consolidate your existing borrowing, you may be extending the term and increasing the amount you repay in total.