Neither a broken boiler or a packed-up car care if our savings are a little thin on the ground, and something as urgent as an unexpected vet’s bill can’t be put on hold until we’ve saved up the money.
In these situations, you might have thought about searching for a loan. This can be daunting enough, and even more so if you have bad credit.
Here at Growing Power, we understand that the last thing you need when faced with a financial emergency is additional stress – that’s why our online form has been designed to be as straightforward as possible. Search for a bad credit loan between £100 and £10,000, with a repayment term from 3 to 60 months, depending on how much you apply to borrow.
Any credit score welcome to apply.
Before you apply for a bad credit loan…
When we find ourselves unexpectedly out of pocket and faced with an urgent cost, it’s natural to panic and look for a quick solution.
While it might be possible for you to get a bad credit loan, it doesn’t necessarily mean that you should apply. It’s important to explore any options that may be available to you before you make a decision.
Applying for a loan requires a great deal of careful consideration.
- If you have bad credit, you might not be approved to borrow as much money as you need.
- A bad credit loan could come with a higher rate of interest. This will increase the overall cost of borrowing.
- You’ll need to be certain that you can afford to make your monthly repayments, which will include interest.
- Making a late repayment or missing one altogether could result in late fees, and your credit score will be harmed.
- Repaying a loan should never leave you in a position where you’re unable to afford your monthly essentials, such as utilities and mortgage or rent.
According to Viva Money - three of the most common causes of bad credit are "previous financial difficulties; for example, declaring bankruptcy, missed payments and failure to stick to existing or past credit agreements".
Could I get a bad credit loan with Growing Power?
Growing Power is a credit broker. We work with over 30 Financial Conduct Authority (FCA) authorised and regulated lenders, several of whom are willing to consider applications from those with bad credit.
When you complete our online form, we’ll use the information provided to scan our panel of lenders for a suitable loan, based on your individual financial situation.
- Our service is free to use.
- Quotes are no obligation.
- Searching for a loan will not impact your credit score in any way.*
As mentioned above, it’s crucial to bear in mind that if you are offered a bad credit loan, you could be presented with a higher rate of interest. You should stop and think about how this will impact your monthly repayments.
Ready for a quick loan?
Who can search for a bad credit loan with Growing Power?
In order to search for a bad credit loan with Growing Power, you’ll need to meet the following eligibility criteria.
You must:
- Be over the age of 18;
- Be a UK resident;
- Have a UK bank account and valid debit card; and
- Have a regular source of income paid into your bank account.
Bad credit loans for people on benefits
‘Can I get a loan if I’m on benefits?’ is a frequently asked question, and there is no one-size-fits-all answer.
Ultimately, whether you could get a loan if you’re on benefits will depend on the lender, and the type of benefits you receive.
When you apply for a loan, the lender will check to see whether you’re in receipt of sufficient income to enable you to comfortably make your monthly repayments. Some lenders may consider certain benefits as a form of income.
Search for a bad credit loan with Growing Power
- Fill out our online form. You’ll be asked how much money you need and how long you’d like to borrow it for. We’ll also request some basic information, such as your address history, employment status, and income.
- We’ll complete a soft search with no impact to your credit score and scan our panel of lenders for a loan for you.
- If we’re able to match you with a lender, you will be redirected to their website. Here, you’ll be able to find out more about the loan and decide whether you’d like to make a full application.
- At this stage, a creditworthiness assessment will be carried out. A creditworthiness assessment will include either a hard search or Open Banking. Please note that undertaking multiple hard searches within a short space of time will damage your credit score.
- If the lender is happy with the outcome of their checks, they’ll let you know when you can expect your money to be sent.
During the application process, you’ll be sent a loan agreement. Read through the terms and conditions carefully. You should be sure that you’ll be able to repay the money you owe, plus interest, in line with your selected repayment term.
Will a bad credit loan affect my credit score?
Yes; any type of loan or credit product will affect your credit score.
As discussed, when you apply for a loan with a direct lender, they will run a creditworthiness assessment, which will typically include a hard search. If you make multiple applications for credit, you risk multiple hard searches on your credit file. Too many hard searches within a short period of time will cause your credit score to decline.
How you manage your loan will also impact your credit score.
If your repayments are made in full and on time each month, you could see an improvement in your credit score, although this will also depend on whether you’ve kept up to date with any existing credit commitments.
If you default on a repayment, your score will be negatively affected.
Can I get a bad credit loan with no credit check?
Applying for a loan can be stressful, particularly if you have a history of bad credit. Feeling apprehensive about your credit score may lead you to wonder whether you could apply for a loan without a credit check.
The FCA requires all authorised and approved lenders to complete a creditworthiness assessment on anybody who applies for credit, and this will consist of either a hard search or Open Banking.
Undergoing a creditworthiness assessment when you have bad credit can feel really unnerving, but please remember that these checks are carried out to protect YOU. The very last thing a lender wants is for a potential borrower to end up in financial hardship.
Guaranteed bad credit loans
There is no such thing as a ‘guaranteed’ loan.
Even those with a perfect credit history are not guaranteed to be offered a loan. Loan applications are assessed on an individual basis and many factors are taken into consideration, such as your eligibility and affordability.
You should be very vigilant when it comes to companies who claim to offer ‘guaranteed’ loans; they’re unlikely to be operating under FCA guidelines, and this means that you are not protected.
You can check to see whether a company appears on the FCA register here.
Same-day bad credit loans
It might be possible to get a same-day bad credit loan, but this will depend on when you apply, the lender you apply with, and even your bank.
If you’re approved for a loan, some of the lenders on the Growing Power panel could send your money on the same day. Please note that the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.
What should I do if I can no longer afford to repay my loan?
Sometimes, our financial situation can change due to reasons outside our control. This can include life events such as redundancy, as well as frustrating events, such as increased bills.
If you’re worried that you might miss or struggle to make an upcoming repayment, you should contact your lender as soon as possible. While this may feel overwhelming, they will be able to talk you through any options that may be available to help reduce some of the pressure.
Free, confidential money advice
It’s not always easy to talk about money, especially when we’re worried. Whatever you’re facing, please know that you don’t deserve to suffer in silence. If you don’t feel like reaching out to a trusted loved one, you can contact any of the following charities and organisations for free, impartial debt and money management advice: StepChange, MoneyHelper, Citizens Advice, and National Debtline.
*If you’re matched with a lender and choose to make a full application, a creditworthiness assessment will be carried out. This will include a hard search or Open Banking. Please note that a hard search will remain on your credit file for up to 12 months, and undergoing multiple hard searches within a short period of time will damage your credit score.