Bad Credit Loans

How to borrow when you've got a bad track record

A number of lenders specialise in bad credit loans, which are designed for people that the mainstream lenders don't want to deal with. Getting a loan is simple enough but you'll pay for the privilege: interest rates can be high, and some firms charge an administration fee for problem cases.

What do you do if mainstream lenders don't want your business? If you need a loan, then you'll need to look for firms that specialise in bad credit loans.
Having a bad credit rating doesn't necessarily mean you're a financial nightmare, although missing payments on other loans or ending up with a county court judgement (CCJ) against you is a sure-fire way to end up on a credit blacklist. But even the most blameless person could have a bad credit rating: they might be too young, or have an unusual job, or might simply not have had any form of credit before. Mainstream lenders aren't interested, but there are plenty of firms who will be.
Firms such as Purple Loans offer bad credit loans, but inevitably there's a catch. You can expect to pay a higher APR than with a mainstream lender, and you might be asked to pay an administration charge depending on whether or not you're a "problem case". It's important to read the small print carefully, because the admin fees can be hefty.

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