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Unsecured loans bad credit for UK residents

by Jim ONeil on October 26, 2010

in unsecured loans

The borrowers in UK today rely extensively on loans with the constant rise in prices of commodities and services and lower income levels. However, those who are not homeowners tend to find it a little difficult to secure funds when they need it. For this reason, most lenders and loan companies today offer unsecured loans which are available to non-homeowners and tenants.However, it would be a little difficult to find unsecured loans bad credit.

With unsecured loans, the risk of the lender is substantially high since there is no security involved. Apart from that, offering a loan to someone with a bad
credit history would be an additional risk.Although it might be a little difficult to source unsecured personal loans for borrowers with poor credit scores, there are actually a handful of lenders that do offer this service. Most of the loan companies that offer funds to bad credit borrowers can be found online. Loan companies like Wentworth, Provident, Yes Loans, First Choice etc are a few of the lenders that offer these loans to borrowers with a less than perfect credit history. It has to be understood that the interest rates for unsecured loans bad credit tends to be quite high since the lenders do take a higher risk when they offer funds to such borrowers.

Are unsecured loans bad credit really available?

With unsecured loans bad credit, the loan companies charge a very high interest rate so that they would be able to recover as much as they can in case the borrower fails to make regular payments at a later stage during the loan. However, in most cases borrowers with low credit scores do not really have many options when it comes to sources of funds. There are not many lenders that would be actually willing to offer funds to these borrowers so applying for an unsecured loan would be one of the very few options that are still available to them.

Bad credit borrowers who have already tried applying for other loans and have failed to get an approval can then try to get an approval for an unsecured loan. Although the chances of getting an approval is higher with a secured loan for these borrowers, when only a small amount of loan is required, an unsecured loan would be a better option. Borrowers applying for these loans must remember that these loans are only short term emergency funds. Since the interest that they would have to pay on the loan would be quite high, it would be important to ensure that they only rely on the loan when it is absolutely necessary.

Even though no asset is at risk, if the borrower fails to make the payment on the loan, it can create problems with their credit history and have a negative impact. Arranging for funds in the future can be even more difficult.


Thanks for this interesting point of view

Johnathon Lamons

I don’t recognize what it’s concerning this blog that turns me off such a lot, however you simply don’t appear to urge me excited. I don’t apprehend if its the lack of content or just the way you wrote it. however you really don’t seem to grasp that your readers may not accept as true with you. Youre really simply too out there for me.


Thanks for your opinion Jonathon.We are doing our best to add as much interesting news and tips relating to personal finance issues in the UK as we can.Any suggestions are always gratefully received:)

Malcolm Yakulis

The next time I scan a blog, I hope that It doesnt disappoint me the maximum amount as this one. I mean, i do know it was my choice to read, however I actually thought youd have something attention-grabbing to mention. All I hear could be a bunch of whining regarding something that you simply may fix if you werent too busy craving for attention.


Hi Malcolm,

I’m sorry that you were dissapointed after reading this post about bad credit unsecured loans. The aim was simply to give people an introduction to this type of loan.It’s aim was to give people some initial guidance and inform them about the dangers of unsecured borrowing.

Leisa Koff

I have been looking out the online for such information and I needed to mention due to u for this post. Also, just off topic, how am I able to download a duplicate of this theme? – Regards


Hi Leisa

Thanks for your comment and glad the post was useful to you. The theme for this site was custom built by our in-house design team, so can’t be downloaded I’m afraid.


Makes for interesting reading i’ve been looking for an unsecured loan but so far have only come accross scam brokers promising loans regardless of credit history howevrer they all require some sort of payment/fee before loan can be processed (non of which i have accepted or even believe to be genuine) as i am in a situation where i really do need a loan i would consider higher interest rates I have a poor credit rating from past debt but now have a good income but have been refused from high street lenders are there actually firms out there who provide loans for people with bad credit (if so who are they) or am i simply wasting my time

kim jarman

i keep going to these sites and they all say the same i have not got a guarantor but i have bad credit the companies you have mentioned charge a fee for presenting you with a loan which is basically the same thing i can do push a button and then when you apply its no good anyway what happened to when loan in account then take the charge have no problem with that or as i have no gaurantor they want me to pay first instalment into the post office whats saying that will make a diff and bet you never see it or hear from them again and also these companies making you fill out the endless same info is also no good for your credit rating so seems like a lost cause all round from someone just trying to better there life and start agian thankyou


I need a loan that doesn’t worry about credit rating.

michael winter

Need a long term loan about 10000 pounds

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