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Representative Example

Loan Amount (for 4 months)
Three Repayments of
One Final Repayment of
Total Repayment
Interest Rate
292% pa (fixed)
1244.0% APR

What is a Bad Credit Loan? 

Living with a bad credit rating can be a challenging time of uncertain financial stability, sometimes causing an issue when you need credit the most due to an unforeseen circumstance or emergency, but where can you turn when you have a short-term monetary crisis? This is where Bad Credit Loans can provide you with the funds in times of need. Giving you a decision in minutes, bad credit loans will send emergency funds to you when you need them most.

If you have a poor credit record, you should consider applying for an Uncle Buck bad credit loan. Applying through Uncle Buck is simple, hassle-free and, because we are a direct lender, we don’t need to contact multiple lenders who may each leave a record on your credit file. This will, in turn, ensure the impact on your credit score is minimal.

Why is it Difficult to Get Loans with a Bad Credit History?

While a bad credit history does not mean that you will automatically be declined for an application of credit, it does heavily affect your likelihood of being approved. Lenders will be keen to know your repayment history as this will tell them if you are likely to meet your repayments and successfully pay back what is owed.

What Loan Can I Get with Bad Credit?

While there is no guarantee that an application for a short-term loan with bad credit will be declined or accepted, it’s key to be as upfront and honest with your application as possible. Let the lender know your outstanding financial commitments and monthly expenditure as accurately as possible; failing to declare expenses and then being approved for a bad credit loan could harm your ability to meet the repayment commitments.

What Happens if You Have a Bad Credit Score?

A bad credit score or history indicates to the lender that your track record of meeting repayments or steadily maintaining credit accounts (not making a large amount of credit applications in a small space of time) is uncertain or could be improved. This lack of assurance increases the risk to lenders of a customer missing payments and failing to uphold the terms of the lending agreement. Therefore, a lender can make an offer of credit to people with a low credit score, but these will typically be with higher costs when compared with a customer that has a good credit score and has a good history of meeting their repayments.

Struggling with bad credit? Uncle Buck could help

Will My Low Credit Score Mean I Can’t Get a Loan from Uncle Buck?

Not necessarily, while Uncle Buck does use credit scores as part of application checks, they are not the sole indicator of approval. We are committed to responsible lending, so we treat every new customer’s request for credit like a fresh application, and will conduct creditworthiness and affordability checks to assess your current financial situation. This allows Uncle Buck to offer loans to customers that have been turned down for credit by other lenders based on a bad credit score.

Where Can I Get a Loan with Bad Credit? Ask Uncle Buck

While we cannot guarantee that applications for bad credit loans UK will be approved, we treat every request for credit like a fresh application and will conduct creditworthiness and affordability checks to help us determine whether we believe a loan might work for you.

How to apply for a loan with bad credit:

To be eligible to apply for a bad credit loan with Uncle Buck, you must be:

  • At least 18 years old,
  • A resident of the United Kingdom,
  • In employment
  • Own a working mobile phone number,
  • Have a valid debit card,
  • Have a valid bank account in which your salary is paid,
  • Have a valid email address,
  • Not currently be in or anticipating entering a debt management plan, an individual voluntary arrangement or bankruptcy proceedings.

How Can I Get a Loan with Bad Credit from Uncle Buck?

We offer bad credit loans if you suffer from a poor credit score. Bad credit loans UK are for financial emergencies, where a high-cost short-term credit (HCSTC) loan would allow a customer to ensure that an immediate cash-flow crisis can be dealt with and that payments for existing obligations are not missed, that would otherwise cause unnecessary stress.

However, bad credit loans from us are still subject to the industry-standard affordability and creditworthiness checks to ensure we are lending responsibly. Our bad credit loans are not intended to pay-off pre-existing debt or to cover long-term financial problems.  They are a “high cost” form of credit and there may be cheaper, more suitable options available to you.  Missing payments can also make it more difficult in obtaining credit in the future as we report payment information to credit reference agencies and other lenders may see this.

A bad credit loan could help you to resolve your unexpected expense

What is a Bad Credit Score?

A bad credit score is an indication of missed payments or a succession of recent applications for credit, which will then leave the lender with some doubt about the stability of your finances and your ability to meet repayments. Your credit score will start to reduce when this happens, giving a lender an easy overview of your financial stability; the closer to zero your credit score, the more of a risk you will seem.

What Is a Bad Credit History?

If an individual has a bad credit history, this is an indication to lenders that their ability to manage personal finances is not stable. A bad credit history could show evidence that an individual has missed payments, has a high utilisation of credit cards, has made many credit applications in a short space of time or they have fallen into arrears with existing repayments.

Bad credit history is something that could hamper your chances of approval for several credit applications and could affect your spouse or close family if you are financially associated with them, for example, if you hold joint bank accounts. A poor credit score could impact small purchases like mobile phone contracts to much larger financial commitments like finance agreements for cars or mortgages.

What Is a Credit File and How is it Different to a Credit Report?

A credit file is a raw database that comprises of your personal and financial details obtained from credit card providers, loan providers such as Uncle Buck, banks and other services that allow you to borrow money or credit.

Typically, the Credit File will include:

Personal Details: Name, date of birth, current address, place of work, and gender.

Account Information: A breakdown of your credit accounts (loans, credit cards etc,) their balance, when they were opened or closed, how much activity there was each month, your payment history and whether any payments were overdue or missed.

Credit Inquiries: This refers to the credit applications that you’ve made in the last two years. Keep in mind, credit inquiries come in two forms: a hard inquiry and a soft inquiry. A hard inquiry is made by a financial institution when making a lending decision, which will leave a mark on your credit report for up to two years and could affect your credit score; a soft inquiry is not linked to an application for credit and does not affect your credit score.

Defaults and other black marks: Defaulting on debts, declaring bankruptcy.

Past and present employers: The credit file also lists previous and current employers.

Unlike a credit file, which is just the raw information, the credit report is the neat presentation of the many data points that your credit file outlines. This is typically what you would be presented with when you visit a Credit Reference Agency.

What is a Credit Score?

Your Credit Score is a more short-term snapshot of your current score/rating, as calculated by the Credit Reference Agencies. This summarises your likelihood of being accepted for credit at any given moment in time. It’s more like a single test than an overall CV, so it’s that much easier to improve your credit score in the short term with a bit of effort.

Where Can I Check My Credit Score?

Your credit score will be compiled by three credit reference agencies (CRAs); these are Equifax, Experian and TransUnion (formerly CallCredit). Each of these CRAs may score you slightly differently as it is not always the case that each agency will have access to the same data. Each CRA has its own system for assessing your creditworthiness and will take into account different factors when calculating your score. Therefore, it is important to look to review your score with each CRA.

To check your credit score you’ll need to create an account with the following websites, each of whom will pull your credit score from a particular CRA:

  1. ClearScore

ClearScore is a free website that pulls data from your Equifax credit report.

  1. Noddle/Credit Karma

This is another free site for checking your credit score and assessing your credit history. Credit Karma/Noddle will use data from the CRA TransUnion.

  1. Experian

For checking your Experian credit score, the easiest way is to create a free account with Money Saving Expert to access their Money Saving Expert Credit Club, which offers the full Experian credit report and credit score for free.

Some sites may provide a fee to generate these details for you. For example, CheckMyFile has a monthly fee and will provide a credit score and report from all three major CRAs.

What’s a Thin Credit File?

A thin credit file refers to a credit file that has very little data. By itself, a thin credit file does not indicate a poor lending history and a poor money management plan; a thin credit file is simply saying that an individual does not have many credit applications – they may not even own a credit card or have any loans for example.

Some argue that having a thin credit file means you are reliable with money because you do not make applications for credit. However, since the purpose of the credit file and credit history is to build a reliable picture of responsible lending, a CRA has no consistent proof that an individual could maintain their regular payments, therefore having a negative impact on your credit score.

If you have any queries about our Bad Credit Loan process or need any help with your application, please contact us.