Bad Credit Loans

Borrow up to £10,000, no matter your credit score

Representative 49.9% APR (variable)

Representative Example: Borrowing £4000 over 36 months, repaying £195.16 per month, total repayable £7025.76. Interest rate 49.9% (variable). Subject to status.

Everyone has their own story, and we don't think you can fit all that into a credit score. That's why we choose to lend based on trust instead. If your guarantor trusts you to keep up the repayments and has your back, then we can back you too.

Why choose Amigo Loans for a bad credit loan?

Up to 25 times cheaper than payday loans

Bad credit scores accepted

One affordable monthly payment

What are bad credit loans?

Bad credit loans, simply enough, are loans for people with bad credit. And we like to think they're something we're very good at.

We know that life doesn't hand out everything on a plate. If you have a poor credit score, or little to no credit history in your name, then your credit rating may be holding you back. Whatever the reason, it can mean high street lenders will be unwilling to lend to you or you may not be able to borrow money via typical credit providers.

Well that's not the principle we're founded on. At Amigo Loans, we're real people and we understand real values. Why let a computer decide your credit score isn't good enough when we could just use simple common sense? We won't decline anyone for having a bad credit score alone, and that's why we believe our guarantor loans are one of the best options if you're being held back by a poor credit rating.

Can I get a loan with a bad credit history?

Yes, we don't see why not. And we don't think it should cost you a fortune either.

As long as you have someone who knows and trusts you, then we don't see why we can't trust you too. We're a trust-based guarantor lender – we provide bad credit loans, with affordable options, for those who can't borrow money from traditional lenders. With an Amigo loan, there's no reason why a poor credit history should hold you back.

A Guide to Guarantor Loans

What are the best loans for bad credit?

We may be biased, but we like to think our guarantor loans are the best for people with poor credit. And if you check out our customer reviews, it would seem we're not the only ones that think so.

In terms of interest rates and repayment options, a guarantor loan provides a service that may not otherwise be available if you have bad credit. The concept is simple: you have a guarantor that trusts you to make the repayments, and who will make them on your behalf if you don't. These loans are useful if you have bad credit because they're based on relationships and trust, rather than a credit score. This gives us a guarantee that the loan will be repaid, and it reduces the risk for you. This also means we don't charge anywhere near as much interest as other bad credit loan options available.

Finding someone to be a guarantor for your loan is easier than you think – they just need to meet the following criteria:

Aged 23-75

UK homeowner or have good credit

Happy to pay if you don't

When thinking who could be your guarantor, we'd always recommend asking the people you know who are homeowners first. This is simply because homeowner guarantors have a better chance of being accepted.

Will a guarantor loan help improve my credit score?

As long as you keep up the repayments as well as your other bills, this will go a long way to improving your credit score. A guarantor loan not only provides a finance option when you're unable to borrow elsewhere, but can also help to rebuild your credit score, improving your ability to borrow in the future.

In fact, we've won the Best Credit Builder award from Moneynet for six years running.

Award winning for a reason

We're not the only ones that think we're doing things a bit special:

Moneynet Award

Moneynet Award 2020

Best Mid Cost Loan Provider

Consumer Credit Award

Consumer Credit Award 2019

Best Guarantor Loan Provider



Best Credit Builder Product

Best Companies

Best Companies 2019

2 star 'outstanding' accreditation

Business Excellence Awards

Business Excellence Awards 2019

Excellence in Financial Technology

Credit Excellence Awards

Credit Excellence Awards 2018

Alternative Lender of the year - Finalist

By managing your loan responsibly, you could find that your financial trustworthiness rating begins to rise. Just keep making the repayments on time and in full, and keep on top of your other bills and credit repayments.

What is a bad credit score?

A credit score is essentially a number that lenders can choose to judge you on, while a bad credit score is one that suggests you might be a risk (as in, you might not pay them back!). Most loan providers will be unlikely to accept an application for finance from somebody with a bad credit score. But we know you're so much more than just a number, which is why we won't say no just because your credit score is lower than someone else's.

To provide a bit of background, credit reference agencies use different scoring systems and criteria to determine your credit score. This is why different agencies can score you differently, and is also why you can be refused by one credit provider for having a poor credit score and not another. The data used to inform your credit score ranges from bank accounts and credit cards, to address history and court records.

A credit score comparison of credit rating agencies

To complicate things further, each credit reference agency uses its own scale to determine whether someone's credit rating is good or bad. For example, a credit score of 600 would be considered ‘poor' with Experian, but ‘Excellent' with Equifax.

Either way, it's all the same to us.

What causes a bad credit score?

A whole number of things can cause a bad credit score, including late payments, CCJs, or even having taken out little credit in the past. It's no wonder it's so easy to get caught out.

1 Missed payments

Late or missed repayments on other loans, agreements of bills. These are normally marked as defaults.

2 CCJs

Having a County Court Judgment made against you.

3 Thin credit

If you've never had a credit card or other form of credit, which means you haven't built a credit profile that lenders can check.

An Individual Voluntary Arrangement (IVA) or bankruptcy will also have a huge impact on your ability to take out credit. And even after they've been discharged, they'll remain on your credit file for 6 years which can be just as bad for your credit score.

How do I check if I have a good or bad credit score?

Checking your credit score is easy, and can be done for free thanks to TransUnion's Credit Karma service. Other free services of note are Clearscore, who use Equifax, and Experian, who will let you check your score directly on their website. Using these services can help give you a better understanding of why your credit score is bad, and provide tips on how to improve your credit rating.

Are guarantor loans better than payday loans for bad credit?

We'd definitely say so. Though they're generally taken out for different purposes, payday loans are marketed as a quick and easy way to borrow money, tiding people over until payday. This is a very short-term option and usually requires full repayment within a week or two, often at a very high rate of interest. This means they can be very expensive, difficult to pay off and could have a negative impact on your credit profile.

We're proud to set ourselves apart. An Amigo loan can be spread over up to 5 years with an APR up to 25 times smaller than that of a typical payday loan. This means we can provide the benefits of a payday loan as well as so much more. Which begs the question - if we're so much cheaper, why do people use payday loans at all?

Well, we're relatively new to the scene. In the past, the only bad credit loan option available was a payday loan. This means that people have often never heard of a guarantor loan as an option for borrowing with bad credit, or else wrongly associate us with payday loans when the reality is vastly different.

UK Consumer Landscape. Amigo is a mid cost lender.

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