Struggling with bad credit but need a personal loan? You’re not alone. Many people in the UK face the same challenge — whether it’s unexpected bills, car repairs, or home expenses, sometimes you just need quick financial help.
The good news? Even with a low credit score, you can still get a personal loan. Many lenders in the UK now offer loans for bad credit that come with flexible terms and reasonable interest rates.
In this article, we’ll walk you through the top 5 personal loan options for bad credit in the UK (2025) — including their features, eligibility, pros, and cons — so you can find the right fit for your needs.
What Is a Personal Loan for Bad Credit?
A personal loan for bad credit is a loan designed for people with a low credit score or limited credit history.
Traditional banks often reject borrowers with poor credit, but specialist lenders understand that financial situations can change. These lenders focus more on your current ability to repay rather than your past mistakes.
Such loans usually come with:
- Higher interest rates (due to more risk)
- Smaller loan amounts
- Shorter repayment periods
Still, they’re a good way to rebuild your credit score if you make payments on time.
How to Choose the Best Personal Loan with Bad Credit
Before jumping into the list, here are a few tips to help you choose wisely:
✅ Compare APRs (Annual Percentage Rates) – Lower APR means cheaper borrowing.
✅ Check eligibility before applying – Many lenders let you check eligibility without affecting your credit score.
✅ Avoid payday lenders – They often charge extremely high fees.
✅ Look for flexible repayment plans – Some lenders allow early repayment with no extra charges.
Top 5 Personal Loan Options for Bad Credit in the UK (2025)
Here are the best and most reliable lenders in the UK that offer personal loans to people with bad credit.
1. Everyday Loans – Best Overall for Bad Credit
Everyday Loans is one of the most trusted lenders in the UK for people with poor credit history. They focus on understanding your situation and providing a loan that fits your income.
Key Features:
- Loan amount: £1,000 to £15,000
- Repayment term: 12 to 60 months
- No guarantor required
- Personalized in-branch support
- Quick online application
Pros:
✅ Accepts applicants with poor credit
✅ Face-to-face support for better understanding
✅ Flexible repayment terms
Cons:
❌ Higher interest rates than mainstream banks
❌ Must visit a branch for final approval
Eligibility:
- UK resident aged 18+
- Regular income
- Valid bank account
Website: everyday-loans.co.uk
2. Likely Loans – Fast Approval and Easy Online Process
If you want an online-only lender with a simple process, Likely Loans is a great choice. It’s designed to help people rebuild their credit through responsible borrowing.
Key Features:
- Loan amount: £500 to £5,000
- Repayment term: 12 to 36 months
- No guarantor required
- Check eligibility without affecting credit score
Pros:
✅ Quick online approval
✅ No hidden fees
✅ Improves credit score with timely payments
Cons:
❌ Small maximum loan amount
❌ Higher APR for very poor credit
Eligibility:
- Must be over 18
- Live in the UK
- Stable income
Website: likelyloans.com
3. Amigo Loans – Best for Guarantor Loans
Amigo Loans is a popular guarantor lender that helps people with poor credit borrow larger amounts. You just need a guarantor — someone with good credit who agrees to repay if you can’t.
Key Features:
- Loan amount: £2,000 to £10,000
- Repayment term: 12 to 60 months
- Guarantor required
- No hidden fees
Pros:
✅ Larger loan amounts available
✅ No application or early repayment fees
✅ Good for rebuilding credit
Cons:
❌ Requires a guarantor (can be hard to find)
❌ Late payments affect both your and guarantor’s credit score
Eligibility:
- UK resident, 18–75 years old
- Regular income
- Guarantor with good credit
Website: amigoloans.co.uk
4. 118 118 Money – Trusted Lender with Flexible Options
118 118 Money is another reliable lender offering personal loans for people with less-than-perfect credit. It’s known for transparency and easy-to-understand terms.
Key Features:
- Loan amount: £1,000 to £5,000
- Repayment term: 12 to 36 months
- No guarantor needed
- Fixed monthly payments
Pros:
✅ Quick online decision
✅ No hidden fees
✅ Helps improve credit with on-time payments
Cons:
❌ APR can be high (up to 49.9%)
❌ Limited to smaller loans
Eligibility:
- UK resident aged 18+
- Regular income and UK bank account
Website: 118118money.com
5. Bamboo Loans – Simple, Fast, and Reliable
Bamboo Loans is another excellent option for people who need quick funds and have a poor credit score. It offers both personal and guarantor loans, depending on your credit profile.
Key Features:
- Loan amount: £1,000 to £8,000
- Repayment term: 12 to 60 months
- Instant online decision
- No application fees
Pros:
✅ Fast approval
✅ Flexible repayment options
✅ Improves credit over time
Cons:
❌ Higher APR for bad credit borrowers
❌ May ask for a guarantor in some cases
Eligibility:
- UK resident aged 18+
- Regular income
- Valid bank account
Website: bambooloans.com
Comparison Table: Best Bad Credit Personal Loans (2025)
| Lender | Loan Amount | Term (Months) | Requires Guarantor? | Best For |
|---|---|---|---|---|
| Everyday Loans | £1,000–£15,000 | 12–60 | No | In-person guidance |
| Likely Loans | £500–£5,000 | 12–36 | No | Fast online approval |
| Amigo Loans | £2,000–£10,000 | 12–60 | Yes | Larger loans with guarantor |
| 118 118 Money | £1,000–£5,000 | 12–36 | No | Transparent fixed payments |
| Bamboo Loans | £1,000–£8,000 | 12–60 | Optional | Quick funds and flexible options |
Can You Get a Loan with Bad Credit in the UK?
Yes, absolutely! Even if your credit score is low, there are plenty of lenders willing to give you a second chance.
However, your loan amount might be smaller, and interest rates higher. If you borrow responsibly and make regular payments, your credit score will gradually improve — making it easier to access better loan deals in the future.
Tips to Improve Your Chances of Approval
Here are a few smart ways to increase your chances of getting approved for a bad credit loan:
💡 Check your credit report: Visit Experian, Equifax, or TransUnion to check for errors.
💡 Show stable income: Lenders like borrowers with a regular income or payslip history.
💡 Avoid multiple applications: Each loan application leaves a mark on your credit report — too many can hurt your score.
💡 Consider a guarantor: If your score is too low, a guarantor can help secure a better deal.
💡 Pay bills on time: Even small payments like phone or utility bills can improve your credit profile.
Advantages of Bad Credit Personal Loans
✅ Improves your credit score when you repay on time.
✅ Quick financial help during emergencies.
✅ Flexible repayment terms based on your income.
✅ No need for perfect credit to get approved.
Disadvantages to Keep in Mind
❌ Higher interest rates (due to higher risk).
❌ Smaller loan limits.
❌ Missed payments can further damage your credit score.
Always read the lender’s terms and conditions carefully before signing any agreement.
Final Thoughts
Having bad credit doesn’t mean you’re out of options. In 2025, there are many trustworthy lenders in the UK who focus on helping people rebuild their financial future.
If you want:
- Personal guidance and flexibility: Go for Everyday Loans
- Fast online process: Try Likely Loans
- Bigger loan with a guarantor: Choose Amigo Loans
- Simple, transparent terms: Pick 118 118 Money
- Quick approval and flexibility: Go with Bamboo Loans
Remember, a bad credit loan can be your first step toward financial recovery — just borrow responsibly, pay on time, and rebuild your credit score step by step.