Bad Credit Loans
Got bad credit but need a loan? Lending Stream may be able to help. We offer bad credit loans in the UK. You can check your eligibility with a soft credit search, which won’t affect your credit score (unless you take out a loan). We look at your current financial situation, not just your past credit history. We’re an FCA-authorised direct lender.
Not all applications will be approved for a loan. An offer of credit is subject to status and affordability checks.
What our customers are saying
Why Choose Lending Stream for Loans for Bad Credit?
Trusted
Rated Excellent on Trustpilot with 25,000+ reviews by customers across the UK.
Direct Lender
Lending Stream is a FCA authorised and regulated direct lender, offering short-term loans without any hidden fees.
No early repayment fees
Repay in 6 monthly instalments. We don’t charge for early repayment.
Fast
Apply online 24/7 with decisions in seconds. If approved, cash is sent to your bank in 90 seconds.*
Representative 1271%APR
Lending Stream is FCA Authorised
Lending Stream has been helping UK customers since 2008. In that time, we’ve helped over half a million people by lending more than 3.5 million short term loans. We are an FCA-authorised direct lender, with authorisation number 689378. Our top priority is lending responsibly and giving customers a great experience.
We make sure you know all costs, fees, and repayment terms before borrowing. That is why we show every charge upfront, including interest rates. There are no hidden costs or surprises – everything is clear and easy to understand.
What is Bad Credit?
Bad credit means your credit report shows signs that you’ve missed loan repayments, made late payments, or had other issues managing debts in the past. Your credit score shows how good you are at paying back money you borrow. If your score is low, you may be seen as a higher risk customer.
But that doesn’t mean you can’t borrow money. Many people with a poor credit score can still get access to funds through trusted direct lenders like Lending Stream. We look at more than just your credit report when reviewing your application.
Why You May Have Bad Credit?
Bad credit can happen for many reasons. You may have missed a payment or paid a bill late. You may have used too much of your credit limit or applied for credit many times. Your credit report may also show past issues. These can include a default, a County Court Judgment (CCJ), an Individual Voluntary Arrangement (IVA), or bankruptcy. These records can lower your score, but they do not last forever. Even with these events, you may still be able to apply, as lenders like Lending Stream look at your current situation and if you can afford the loan.
What Are Bad Credit Loans?
Bad credit loans are for people with a low credit score or poor credit history. These loans give you a way to borrow money even if your credit record shows financial difficulties. Lending Stream look at your current ability to repay, not only your past credit score.
These loans offer a chance to get funds fast, without a guarantor or a perfect credit rating. These are also known as unsecured loans, short term loans, or emergency loans. You can use them for unexpected costs, paying bills, or solving short term money problems.
The interest rates are often higher, but they give you the chance to show responsible borrowing. This can help improve your credit score over time.
When applying for a loan, your credit score is one of the key factors that direct lenders consider. In the UK, there are three primary credit reference agencies. These are: Experian, Equifax, and TransUnion. Here’s a breakdown of how credit scores are classified by these agencies:
UK Credit Score Ranges:
| Credit Score Range | Very Poor/Poor | Fair | Good/Very Good | Excellent |
|---|---|---|---|---|
| Experian | 0-720 | 721-880 | 881-960 | 961-999 |
| Equifax | 0-438 | 439-530 | 531-810 | 811-1,000 |
| TransUnion | 0-565 | 566-603 | 604-627 | 628-710 |
Representative 1271%APR
“Bad credit loans may help people who missed payments before. They can also help people who are new to credit. These loans can help in the short-term if you need money in an emergency. They may cost you more in interest than some other loans. Lenders will check if you can pay back the loan when you apply. If you pay all your loans and credit on time every month, your credit rating may get better. This may make it easier to get loans in the future.”
Scott Woolveridge
Operations Director – Lending Stream
Things to Consider Before Applying for a Bad Credit Loan
Before you apply for a bad credit loan, take a moment to check your budget. Make sure you can pay the monthly amount on time. Look at the total you will repay, not just the loan amount, so you understand the full cost. Think about how much you really need to borrow. A smaller amount may be easier to manage.
You should also check your recent credit activity. Many applications made close together can lower your score. A short term bad credit loan should only be used for essential needs. Make sure the loan is right for your situation before you move ahead.
Check Your Eligibility Criteria for Bad Credit Loans with Lending Stream
If you are looking to check your eligibility for a bad credit loan with Lending Stream, then you must:
- Have a valid debit card
- Have an active UK bank account
- Be a UK resident
- Be at least 18 years old
- Be in regular employment with a monthly income of at least £400
During our online application process, we may ask for proof of income. This helps us check if you can make your repayments on time.
Representative 1271%APR
How to Apply for a Bad Credit Loan Online with Lending Stream?
If you are looking to apply for loans for bad credit with Lending Stream, then you must:
Enter your personal details
Choose the amount you want to borrow with us
Provide us with your employment, salary, expenses, and banking details
Once we receive your application form, we will run affordability and credit checks on your profile. If approved, we’ll send the cash to your bank within 90 seconds. It may take longer to reach your account depending on your bank’s processes.
Representative 1271%APR
Get Loans for Bad Credit from a Direct Lender
Getting loans for bad credit from a direct lender like Lending Stream means you deal with us directly. No delays and no hidden costs. We’ll check your application and give you an instant decision. We do this based on your current financial situation, not just your past.
You apply with us, we make a decision. If approved, we transfer funds quickly to your bank account. It’s that simple. If you’ve been turned down before by others or have a bad credit score, we might still be able to help you. We look at more than just your credit score when reviewing your application.
At Lending Stream, we focus on being clear, quick, and supportive. We make decisions in minutes, and if approved, you’ll get money to your bank within 90 seconds*.
Compare Lending Stream vs Other Bad Credit Loan Direct Lenders
Choosing the right lender makes a big difference, especially if you have a bad credit. Lending Stream keeps things simple, fair, and transparent. Here is a quick comparison of Lending Stream vs Other bad credit loans direct Lenders:
| Feature | Lending Stream | Other Bad Credit Loan Lenders |
|---|---|---|
| Loan Amount | £50 to £800 for new customers and £100 to £1500 for existing customers | Varies between lenders. Make sure to do your research |
| Repayment Period | 6 months | It varies between lenders |
| Payout Speed | We send money to bank within 90 seconds (if approved). It may take longer to reach your account depending on your bank’s processes | It varies between lenders |
| Loan Application Time | Apply online 24/7. We give instant decisions | It varies. Some lenders may require phone or in-person applications |
| Early repayment fees | No early repayment charges | Varies – some may charge |
| Upfront fees | No upfront fees will be asked | Varies – some may ask |
Representative 1271%APR
How Much Money Can I Borrow if I Have Very Bad Credit?
Even with a very bad credit score, you may be able to borrow money with Lending Stream. We help people with bad credit by offering flexible loan amounts. The decision is based on your income and current financial situation, not only on your credit report.
You can apply to borrow between £50 and £1,500. For new customers, the range is £50 to £800. For returning customers, it is from £100 to £1,500. The loan amount you qualify for depends on your application and how well we think you can manage the repayments. We will never offer more than what we think you can repay comfortably.
There’s no need for a guarantor or a perfect credit rating. Just a quick online application form and we’ll run our checks. If approved, we’ll send the cash to your bank within 90 seconds*.
What to Do If You’re Struggling to Repay?
If you are finding it hard to make your repayments, try to act fast. Do not wait for the payment date to pass. Speak to your lender as soon as you can. Most lenders will work with you to find a solution that fits your situation. You can also get help from groups and organisations like:
StepChange Debt Charity – Offers free debt advice and practical solutions tailored to your situation.
National Debtline – A free helpline offering independent debt advice over the phone or online.
Citizens Advice – Provides guidance on debt, benefits, and legal rights, with both local and online support available.
How Do Bad Credit Loans Work?
Bad credit loans are designed for people who have a poor credit history. People who struggle to get help from traditional banks. Here’s how they work:
Application
You fill out an online form with your income, expenses, and personal details. A credit check may be done, and your credit report is reviewed to see your financial situation.
Approval
Lenders evaluate your ability to make the loan repayments. Approval is based more on your current financial situation than a poor credit score.
Loan Disbursement
Once approved, your loan will be processed. Funds go straight to your bank account, often within minutes. The exact time may vary between lenders.
Repayment
You repay the loan in fixed monthly instalments over an agreed period. Making payments on time can help improve your credit rating.
Bad credit loans give flexible options for people who need money and a chance to rebuild their credit.
Representative 1271%APR
What Can a Bad Credit Loan Be Used For?
A bad credit loan can be used for many needs, such as urgent home repairs, car costs, or other sudden expenses. Making repayments on time may also help rebuild your poor credit history. Still, you should always look at the cost and decide if this loan is the right choice for your financial situation.
Will Applying for a Bad Credit Loan Affect My Credit Rating?
When you apply for a bad credit loan, most lenders will run a credit check to understand your financial background. At Lending Stream, we start with a soft credit check, which does not affect your credit score. This means you can check your eligibility without any impact.
If you go ahead with the full application, and accept the loan a hard credit check will be performed. This can affect your credit score, but generally only for a short time. What matters most is how you handle your loan repayments after approval.
Making monthly repayments on time can improve your credit rating over time and show lenders that you can manage your money well, even with a bad credit score.
Why Guaranteed Bad Credit Loans Do Not Exist?
Some websites may say they offer “guaranteed” bad credit loans, but this is not true. No FCA authorised lender can promise approval to anyone. All lenders must run credit and affordability checks to make sure you can repay the loan. This is a rule set by the FCA. It helps protect you from taking on debt you cannot manage.
If a lender claims approval is guaranteed, it can be a warning sign. It may mean the lender is not regulated or may charge very high costs. Always choose a lender that is open about checks, costs, and how their loans work.
How to Improve Your Credit Rating for a Loan?
If you have bad credit, improving your credit rating can help you qualify for better loan options in the future. Here’s some tips on how you may improve it:
- Check your credit report: Get a copy from all three main credit reference agencies (Experian, Equifax, TransUnion) and correct mistakes, if any.
- Pay on time: Always pay your bills and existing debts on or before the due date. Making the minimum payments show lenders you’re reliable.
- Keep credit usage low: Try to use less than 30% of your credit limit. High credit usage can hurt your score, even if you’re making repayments.
- Register on the electoral roll: Make sure you’re registered to vote at your current address. This helps lenders confirm your identity and adds a bit more trust to your profile.
- Avoid too many applications: Each credit application can leave a mark. Too many in a short time can lower your score. Space out applications and only apply when you’re more likely to be accepted.
Improving your credit score takes time, but even small changes can lead to better chances of approval for loans.
Alternatives to Bad Credit Loans
1. Personal loans for Bad Credit
A personal loan is an unsecured loan that lets you borrow money without using any assets. It’s generally repaid in fixed monthly instalments, making it a sensible option for individuals with a steady income to consider. Even if their credit score isn’t perfect.
2. Payday loans
Payday loans are short term loans designed to cover urgent expenses until your next payday. These unsecured loans typically come with higher interest rates and shorter repayment periods, for small, immediate financial needs, even if you have a bad credit score.
3. Secured loans
A secured loan lets you borrow money by using something you own, like a car or house. You must pay the money back on time. If you don’t, you could lose what you used to get the loan. Always be careful and read the terms and conditions before saying yes.
4. Guarantor loans
A guarantor loan means someone you trust, like a friend or family member, says they will help. If you can’t pay the loan, they will pay it for you. This type of loan can help if your credit is not good. Always make sure everyone understands what will happen before saying yes.
FAQs – Loans for Bad Credit
How Fast Can I Get a Loan for Bad Credit?
With Lending Stream, you can get a decision in minutes. If approved, we transfer funds directly to your bank within 90 seconds. Funds may take longer depending on your bank’s processes. We offer loans quickly without long waits or paperwork, so you get help when you need it most.
Can I Get a Bad Credit Loan for an Emergency?
Yes, many customers apply for loans during emergencies such as unexpected expenses or urgent utility bills. Lending Stream offers quick loans, making it easy for people with bad credit to access funds fast, if approved.
Can I Get a Bad Credit Loan if I Have a CCJ?
Yes, it is possible to apply for a loan even if you have a CCJ. A CCJ can lower your credit score, but it does not always mean you cannot apply. Lenders look at your current income and if you can afford the loan. A CCJ will stay on your report for six years, but lenders may still review your application based on your present situation.
Can I Get a Loan After Bankruptcy?
Yes, you can but after bankruptcy, your choices may be limited. You may still be able to apply in some cases. Lenders will look at your income and your recent money habits. Bankruptcy stays on your report for six years. During this time, you should only borrow if the loan is needed and affordable.
Is Lending Stream a Bad Credit Loan Direct Lender?
Yes, Lending Stream is a bad credit loans direct lender in the UK. We are FCA-authorised and give loans straight to customers. Once approved, the loan amount goes directly to your bank. The process is clear and simple, with no hidden fees.
Can I Get a Loan with a Credit Score of 500 in the UK?
Yes, you can. Although a credit score of 500 is considered bad credit, you can still apply. Lending Stream looks beyond just your score. We assess your financial situation to offer loans with fair terms and fast decisions, even with a poor credit score.
What Score is Classed as Bad Credit?
In the UK, a credit score below 720 (Experian), 438 (Equifax), or 565 (TransUnion) is typically seen as bad credit. Each agency has its own scale, but scores in the lower ranges suggest higher lending risk.
How Much Can I Borrow with Very Bad Credit?
The amount you may borrow depends on your income and what you can afford to repay. Lenders look at your budget, not just your credit score. Borrowing a smaller amount may be easier to manage. You should only borrow what you need and what fits your monthly budget.
Who Can Benefit from Loans for Bad Credit?
People with bad credit or low credit history can benefit from these loans. If you need to borrow money quickly and can’t get help from a bank, you can consider Lending Stream. However, these loans often come with high interest rates. If not managed carefully, they can worsen your financial situation and further impact your credit score.
Can I Get a Loan With Bad Credit and No Guarantor?
Yes. Lending Stream offers bad credit loans without needing a guarantor. You apply on your own, and we assess your credit report, income, and financial situation to decide. It’s a simple way for people to apply to borrow money without relying on a guarantor.
What is the Easiest Loan to Get with Poor Credit?
Some loans are easier to get if your credit is not good. This depends on things like how much money you earn and what you can pay back. Some people ask a trusted person to help. Others may use something they own to help get a loan. It’s important to only borrow what you can afford to pay back. Always read the terms and conditions before saying yes.
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