Best Bad Credit Loans UK 2026
Personal loans for poor or limited credit histories
UK lenders specialising in bad credit personal loans consider borrowers with poor credit scores (below 560 on Experian's scale) who mainstream banks decline. Rates are higher but the FCA caps total cost of credit to protect consumers.
Avg APR
25% – 49.9%
Loan Amount
£500 – £5,000
Term
12 – 36 months
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Top UK Lenders for Bad Credit Loans
Likely Loans
Poor credit, no guarantorRepresentative APR
59.9% APR representative
Loan Range
£500 – £5,000
Min Credit
Poor
Funding
1–2 days
Bamboo
Moderate bad creditRepresentative APR
49.7% APR representative
Loan Range
£1,000 – £8,000
Min Credit
Poor
Funding
1–2 days
Drafty
Flexible credit lineRepresentative APR
89.7% APR representative
Loan Range
£50 – £3,000
Min Credit
Poor
Funding
Same day
Lendable
Fair credit, lower rateRepresentative APR
24.5% APR representative
Loan Range
£1,000 – £25,000
Min Credit
Fair
Funding
1–2 days
Abound (Fintern)
Open banking underwritingRepresentative APR
24.9% APR representative
Loan Range
£1,500 – £10,000
Min Credit
Fair
Funding
1–3 days
Representative APR shown. 51% of successful applicants receive this rate or better. Your rate may differ based on your credit profile.
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Pros
- Access to credit when banks decline
- FCA regulation provides consumer protection
- On-time payments rebuild credit score
- Better than high-cost credit alternatives (doorstep lenders)
Cons
- Very high APR — can be 50–100%
- Risk of unaffordable debt spiral
- Short term means high monthly payments relative to loan size
- Some lenders have poor reputations — always check FCA register
Key Facts
Frequently Asked Questions
What credit score is "bad" in the UK?
Experian: below 560. Equifax: below 380. TransUnion: below 566. These are "poor" — mainstream lenders typically need "fair" scores and above.
Are bad credit loans regulated in the UK?
Yes — the FCA authorises all consumer credit lenders. Check the FCA Register before borrowing from any lender.
What is a credit union loan?
UK credit unions are non-profit member-owned lenders, often accepting poor credit at capped 3% APR monthly. They're the best option if you qualify.
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