Having bad credit can make it challenging to obtain a loan from traditional lenders such as banks and credit unions. However, there are options available for individuals with less-than-perfect credit histories. Direct lenders offering bad credit loans can provide a solution for those who need access to funding quickly. In this guide, we will compare the top five bad credit loans direct lenders in the UK, so you can find direct lender loans to suit you.
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Amigo Loans
Amigo Loans is a direct lender that provides guarantor loans to individuals with bad credit. A guarantor loan requires a co-signer, such as a family member or friend, who agrees to make repayments if the borrower cannot. Amigo Loans offers loans from £2,000 to £10,000 with repayment terms between one and five years. Interest rates range from 49.9% to 99.9% APR.
Pros:
- Loans available even with bad credit
- Guarantor loans can help borrowers with limited credit histories
- Loan amounts up to £10,000
- Repayment terms up to five years
Cons:
- High-interest rates
- Requires a guarantor
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Bamboo loans
Bamboo Loans is a direct lender that offers personal loans to individuals with bad credit. Loan amounts range from £1,000 to £8,000 with repayment terms between one and five years. Interest rates vary depending on the borrower’s creditworthiness, but rates start at 26.9% APR.
Pros:
- Personal loans available for those with bad credit
- Flexible repayment terms
- Loan amounts up to £8,000
Cons:
- High-interest rates
- May require collateral for larger loans
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Likely Loans
Likely Loans is a direct lender that provides personal loans to individuals with bad credit. Loan amounts range from £500 to £5,000 with repayment terms between one and five years. Interest rates vary depending on the borrower’s creditworthiness, but rates start at 39.9% APR.
Pros:
- Personal loans available for those with bad credit
- Loan amounts up to £5,000
- Flexible repayment terms
Cons:
- High-interest rates
- Late repayment fees
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SafetyNet Credit
SafetyNet Credit is a direct lender that offers a revolving credit facility to individuals with bad credit. This means that borrowers can access funds as needed and only pay interest on the amount borrowed. SafetyNet Credit offers credit limits from £100 to £500 with interest rates of 0.8% per day on the amount borrowed.
Pros:
- Access to credit for those with bad credit
- Borrow only what you need
- Only pay interest on the amount borrowed
Cons:
- High-interest rates
- Credit limit may be too low for some borrowers
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The One Stop Money Shop
The One Stop Money Shop is a direct lender that provides short-term loans to individuals with bad credit. Loan amounts range from £300 to £1,000 with repayment terms between three and six months. Interest rates vary depending on the borrower’s creditworthiness, but rates start at 292% APR.
Pros:
- Short-term loans available for those with bad credit
- Loan amounts up to £1,000
Cons:
- High-interest rates
- Short repayment terms
While having bad credit can make it difficult to obtain a loan, there are options available for those who need access to funding quickly. Direct lenders that specialise in bad credit loans can provide a solution for individuals who have been turned down by traditional lenders. However, it is essential to consider the interest rates and repayment terms before taking out a loan.