The electoral roll
These are loans that may be available to people whose credit report is less than spotless. Because of this, interest rates are likely to be higher with loans for bad credit than with many other loans. However a loan for bad credit could be an option for you if you are finding it a challenge to get credit from another lender.
Typically, you may be interested in this if you have a poor record of managing credit - perhaps you missed credit repayments, defaulted on an account or made too many credit applications in a short space of time.
Or, it could be that you don’t have much of a credit history – you’re young and have yet to build one up, or you’re new to the country.
One thing to bear in mind is that loans for bad credit may have lower limits and greater restrictions, as the lender may think you’re more of a risk than someone with a cleaner credit history.
Some simple but well-managed forms of credit, like a mobile phone account or some utility bills, could show that you can pay bills responsibly and on time each month.
Review your credit report, make sure it’s up to date, and that the information on it is accurate.
Registering to vote on the electoral roll can help lenders confirm you are who you say you are and you live where you say you live, giving them added confidence.
Using a comparison site like Experian can help you find out about credit loans products you're more likely to be accepted for.††
Comparing loans before you apply leaves a soft search on your credit report, this doesn't leave a footprint on your credit report that's visible to lenders, so it won’t affect your credit score.
Try to make sure you keep up with repayments to your credit loan so that you do not further damage your credit report.
This can be a great opportunity to build or rebuild your credit history by showing how reliable a borrower you are.
Try not to add to your existing debt while paying off your bad credit loan.
As your lender sees you pay off your bad credit loan successfully, you may see your credit score increase.
Experian uses your credit information - as well as information you provide about your requirements and financial circumstances - to show you products that are matched to you.††
This means you can see a list of credit products that you are more likely to be accepted for, and as it is a ‘soft search’ only you can see it on your credit report. For a credit product search that matches your credit information just visit Experian.
Experian does not give advice on the suitability of products to customer’s needs. If you would like to get help on which products suit your needs, it is best to seek help from a financial adviser.