Representative APR 49.9%
Representative Example: Borrowing: £1200 for 18 months, Total Repayable: £1628.28, Total Interest: £428.28, Interest Rate (Variable): 49.9%.New Horizons is a registered trading name of New Horizons Finance Limited, which is an Introducer Appointed Representative of Flux Funding Limited, who are a credit broker, not a lender.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

What is a bad credit personal loan?

If you have been turned down for a loan, you may have experienced credit problems in your past, such as late payments, defaults or County Court Judgements (CCJ’s).

A bad credit personal loan is a way of borrowing money if you have a low credit score. Direct lenders, such as banks and building societies, will only allow customers to borrow money if they have a high credit score. Customers who have experienced credit problems in the past have previously found credit extremely difficult to come by. Still, thankfully, there are now lenders offering loans such as online personal loans for bad credit.

Bad credit personal loan questions

Q1 – Can you get a personal loan with a low credit score?
Q2 – Will be personal loan be more expensive because of my poor credit record?
Q3 – Can I apply for a personal loan with no credit check?
Q4 – Am I guaranteed to be accepted for a personal loan?
Q5 – How can I improve my credit score?
Q6 – Do I have the same level of protection if I take out a bad credit loan?
Q7 – Is my personal information safe?
Q8 – I am struggling with my debt. What should I do?

Can you get a personal loan with a low credit score?

Following the introduction of personal loans for bad credit, finding a loan if you have a low credit score is now a much simpler process. If you are looking for same day loans from authorised, respectable lenders then you are in the right place.
New Horizons has a panel of bad credit personal loan companies, who consider all credit histories, even if you are looking for a CCJ personal loan. Available online and with no obligation, we can find the best bad credit loans for you.

Will be personal loan be more expensive because of my poor credit record?

If you are looking for an online personal loan, there are a variety of lenders in the market. If you have an excellent credit rating, you will have access to the cheapest deals on the market. Customers needing a bad credit personal loan will pay a higher interest rate due to the increased risk to the lender.
All personal loans are regulated by The Financial Conduct Authority, who have introduced an interest rate cap. So, if you are approved for a loan, even with very bad credit rating, you will not pay greater than 0.8% interest per day.

For people with a low credit score, getting a personal loan from their bank is virtually impossible. We work with lenders who can help find a suitable loan for the majority of circumstances.

New Horizons

Can I apply for a personal loan with no credit check?

If you see an advert stating ‘no credit check’, you should tread carefully, The Financial Conduct Authority requires all credit providers to perform a credit search before approving an application.
There are two types of credit check that a lender can carry out, a soft search, which does not leave a footprint on your credit file, and a hard search, which leaves a footprint.
A soft search is how lenders will initially assess your application and act as a background check and allow them to accept the application in principle. A soft search is not seen by other lenders and has no impact on your credit score. No credit check loans do not exist so you should be wary of a company advertising them.
A hard search is completed once a customer has accepted the loan offer, which gives the lender full access to your credit history and allows them to approve your application. Other lenders can see this hard search and multiple hard searches will impact your credit score.

Am I guaranteed to be accepted for a personal loan?

Unfortunately, a guaranteed personal loan doesn’t exist. As explained previously, all lenders will have their criteria when it comes to the level of bad credit they will accept.
New Horizons has very high acceptance rates for personal loans as we work with lenders who consider all different types of customer, even those with terrible credit.

How can I improve my credit score?

If you have an adverse credit rating, you would likely want to improve it. Thankfully there are ways for you to increase your credit score over time gradually.

It is crucial to ensure that the information that is held by credit reference agencies is accurate. You can do this by requesting a copy of your credit report from Experian, Equifax and Call Credit. If there are any inaccuracies on the report, you can submit a change request.

Close any old or unused current accounts or credit/store cards as these will show in your available credit. Lenders will look at your credit exposure when assessing your application, so this could improve your chances of being accepted for a personal loan.

Time is the main healer when it comes to repairing a poor credit rating. Making repayments on time on all credit, utility and telephony contracts will gradually see your credit rating improve.

Do I have the same level of protection if I take out a bad credit loan?

All credit providers, regardless of who they offer credit to, are authorised and regulated by The Financial Conduct Authority. It means every lender, including those offering loans for bad credit, have to follow certain rules; including their advertising, the information that is on their website, how they treat customers, the price of their loans and how they collect payments. Your credit rating does not reduce your protection in any way.

Is my personal information safe?

When you complete an application for an online personal loan at New Horizons, all of the information that you provide is kept totally secure. Using specialist data centres with high levels of security, you can rest assured that we treat your data responsibly. New Horizons is licenced by The Information Commissioner’s Office. For further details please see our Privacy Policy.

I am struggling with the amount of debt I have. What should I do?

If you are worried about your debts or are struggling to keep up with the repayments, it is essential to get access to the help that you need. If you are going to miss a payment on a credit commitment, you should speak to the provider straight away. They could potentially help you through the situation before it gets worse and possibly enables you to avoid additional charges.

There is a range of free services available to those struggling with debts. You can contact them directly using the links below.

moneyadviceservice.org.uk
stepchange.org
nationaldebtline.org

Personal Loans for Bad Credit - Apply Today

Apply now and the money could be in your bank today †. It only takes a few minutes.

Apply Today

What our customers say...