The 3 Worst Bad Credit Loans in the UK!

The 3 Worst Bad Credit Loans in the UK!

If you are unfortunate enough to have a bad credit rating, then you are limited in the loans you can take out as most high street lenders will not lend to you?

In this article, we look at the three worst options to try and avoid.


An image of jewellery and lots of money

Whilst many people would not think of a pawn shop as a type of loan, basically, it is, and you are simply offering a personal possession as security if you do not pay the loan back.

So if you do not pay the loan back you will lose the item used.

Plus depending on the pawnshop you have used, borrowing this money could be very expensive, especially if you lose the item you pawned.

Pawnshops are also known as pawnbrokers, particularly in the UK. To find out more, please look at  Pawnbrokers – how they work

2.Payday LoansAn image of a red payday loan sign

This industry has received a lot of press in the UK to the extremely high-interest rates charged, such as 2,000% to 5,000% APR, these charges are still extremely high and this is a very expensive form of borrowing.

The payday loan should be approached with extreme caution as they are very expensive. If you are considering a payday loan, please make sure you know exactly how much the charges are before you borrow and make sure you pay you back on time, otherwise this is when the costs really start racking up.

For more information see the Citizens Advice Bureau’s article specifically on Payday loans.

3.Loan Shark

An image of a shark

A loan shark is someone who lends money without the appropriate license issued by the Financial Conduct Authority.

Typically they charge very high-interest rates, do not issue paperwork, and will use illegal activities such as intimidation and violence to collect the money they have lent.


If you think a money lender is operating without the correct FCA authorisation you can speak to the Illegal Money Lending Hotline on 0300 555 2222.

Better options

We have brought together better loan options for those with a poor credit score, options are that more affordable and ethical, why not:

  1. Find out more about guarantor loans and non-guarantor loans
  2. Find out about being a guarantor
  3. Find out which loans you qualify for

Also see: Are there no credit check guarantor loans?

Jon Edward

Happily married with two wonderful girls. Love cycling, curry, and when I get the chance - loud music! See Jon's Profile Page

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