Bad Credit Loans in the UK: What to Check Before You Borrow With a Poor Record

Typical APR

29.9%-49.9%

Guarantor loans

Up to 49.9%, needs a guarantor

Broker fees

0-1,000 pounds, sometimes on completion

Watch for

Upfront fees before a lender is found

Check the broker fee timing

A fee taken before any lender is identified is the classic bad-credit trap. A reputable broker is paid on completion, by the lender or by you afterwards.

Guarantor loans work but bind someone else

A guarantor is liable for the whole balance after missed payments. Explain the exposure before asking, and expect the rate to sit near the top of the range.

APR is high; total cost still matters

At 39.9% over three years, 4,000 pounds costs around 2,700 in interest. Compare total repayable, and check whether a 0% money-transfer card is cheaper for the same sum.

Watch for the rollover pattern

Repeatedly refinancing a bad-credit loan resets the term and adds interest each time. If you have refinanced twice, the amount is the problem, not the lender.

FAQ