Loans for Bad Credit
You're not "a loan"
Community Finance offers inclusive, flexible and more affordable credit options to those with a non-existent or poor credit history.
Representative 28.3% APR
350+ Community UK direct lenders
No contact details required for a match
Personal and inclusive lending
350+ community led providers in the UK
How to get a fair loan with Comuno
Step 1 - Find your community
Based on just your postcode, work or existing associations we’ll narrow you down a suitable Credit Union or CDFI.
Match in 30 secs with no contact details
Step 2 - Check your eligibility
You can then check your eligibility for your loan or membership (if a credit union). This way you won’t impact your credit file, or waste any unnecessary time.
Check has no impact on your credit file
Step 3 - Review quote & apply
If eligible we’ll present you with a personalised loan quote. If you decide to continue we’ll send you and your details to the lender to finalise your application. Zero hassle.
Application sent direct to lender
The best loans for bad credit...
If you have a limited or poor credit history then Community Finance options such as Credit Unions and Not-For-Profit lenders can often be your best option for a loan. This is for the following reasons...
Cheaper than traditional bad credit loans
Short and long term loans for all purposes
Strong ethical stand point
Led by customer wellbeing and not profits
Inclusive lending for diverse credit history
Alternative options for a loan with poor credit...
What are bad credit loans?
Bad credit loans are unsecured personal loans for people in the UK who have either a low credit score or limited credit history.
Providers of these loans will use additional ways to assess an applicant (outside of just a credit score) in order to help those unable to access finance from more mainstream lenders. This could mean that even if you have a very bad credit score if your financial health is in good order and you have sufficient levels of income you still may have credit options.
Do I have a bad credit score?
There are three main Credit Reference Agencies (CRA) in the UK that lenders will use to assess your creditworthiness. Confusingly they all have different scoring scales, but the below should provide you with an idea.
Here's how to improve your credit score...
Improving your score is a gradual process but here are some things you can do immediately:
-
Electoral Roll - Make sure you're on the electoral roll
-
On-time payments - Prioritise paying your bills on time
-
Check your Credit Report for mistakes - they are more common than you think
-
Build credit - Use credit or credit builder products responsibly
Use Community Finance to improve your Credit File.
When you borrow from a Credit Union, CDFI, or socially responsible lender they will report your repayments back to the Credit Reference Agencies. In time this will improve your credit score whilst allowing other credit providers to see that you can responsibly manage credit.
This combined will give you more flexibility when it comes to applying for credit in the future.
I need a quick loan, it's an emergency!
In the case of an unexpected financial emergency, you may not need or want to borrow £1000's. You may just need a small or short-term loan to give you an injection of cash to get back on track.
Typically short-term lending is expensive. The high rates of payday loans for bad credit have been well documented, but even the posh, shiny, high-end credit cards can be costly if not managed carefully.
When it comes to emergency loans, Community Finance offers a fair and affordable option.
The loan approval process
When assessing your application lenders have to complete several checks to ensure lending to you is a safe and responsible thing to do. Although you may receive an instant decision in principle, it's for this reason that you can never be guaranteed approval.
How it works
Basic Criteria and soft credit file check.
Hard credit check & affordability assessment
Submit final application
Final Decision
Debt Consolidation
If you have multiple debts outstanding, such as payday loans and/or credit cards the likelihood is you're paying back more in interest than you need to you.
A bad credit debt consolidation loan is used to pay off those debts. You then only have a single repayment to worry about, at a lower interest rate.
Direct lenders with no guarantor
If you have a poor credit history, some lenders will still consider your application if you can provide someone to guarantee your repayments. This type of loan is called a guarantor loan. Rest assured you do not need a guarantor to access Community Finance options.
No guarantor is required to use Comuno or for our network of UK direct community led lenders.
-
How does Community Finance differ from traditional banking?Unlike traditional banks, Community Finance institutions often focus on financial inclusivity and community wellbeing. They provide services tailored to those who may be underserved by mainstream financial institutions.
-
Who Can Benefit from Community Finance Services?If you have difficulty accessing services from traditional banks, due to poor or thin credit history, low income, or if you're just seeking more community-oriented financial solutions, Community Finance is for you.
-
Are Community Finance institutions safe and regulated?Yes, like traditional banks, Community Finance institutions are regulated and must adhere to financial regulations, ensuring they operate safely and in the best interest of their customers.
-
How do I find a Community Finance provider near me?You can use the Comuno Community Search tool, which matches you with providers based on your postcode and other basic criteria.
-
What kind of customer service can I expect from Community Finance providers?These providers typically offer a more personalised customer service experience, focusing on individual needs and community wellbeing.
-
Are interest rates competitive?Community Finance providers often offer competitive interest rates, especially compared to high-interest alternatives like payday loans.