Poor Credit Loan

Poor Credit Loan

A credit union will look beyond a poor credit rating when deciding whether to provide a loan. Your credit score is important, but unlike many other mainstream lenders, we look at other factors too. We are here to support people who struggle to access mainstream finance.

If your poor credit history prevents you from getting a loan at one of the big banks, but you want to avoid high-cost online lenders and payday loans companies, apply for a credit union loan.

Applying for a credit union loan is simple and we will give you a quick decision.

How much can you borrow?

We can lend up to £15,000 but most of the loans we agree are for much smaller sums, typically around £1,000.

How long does it take to repay?

The repayment period can vary from 3 months to 84 months and depends on the amount you borrow and how much you can afford to repay. You can repay a loan in full at any time.

How much interest do we charge?

Our APR (%) range from 9.38% – 42.6%. The amount you are charged is dependent on how much you borrow and not on your individual circumstances. We do not charge any additional fees.

Try our loan calculator to see how much you can afford to borrow?

How we assess your application

We understand that past debts and missed payments may have contributed to bad credit history. This can count against you, but at the credit union, we look at other factors too.

We are a responsible lender, whilst not all loan applications are accepted, we will consider each one individually.

Alongside credit history, we will look at your income and expenses. We will only agree to a loan if the borrowing repayments are affordable to you.

We also encourage our members to commit to saving. If you join the credit union and save regularly it will increase your chances of being accepted for a loan. Paying back a credit union loan on schedule can improve your credit score.

Read about our loans to see what sort of information we request from applicants.

What you save with a credit union loan compared to high-cost lenders

If you want advice about money or are concerned about debts there is free and independent advice available. Visit StepChange Debt Charity or the Money Advice Service for impartial support.