Bad Credit Loans: Get Approved Today

Over 1 million customers have used Sunny since 2022 to find suitable loans when traditional lenders turned them down. Our 4.5 out of 5 star Trustpilot rating reflects genuine customer experiences, and with 7,500+ daily quotes, we’re helping people with poor credit right now.

We’re a credit broker, which means we search our network of trusted lenders to find you the best match. You get access to multiple options in one place, all whilst keeping your credit score safe with our soft search technology. Best of all, we never charge you any fees.

See if you match

Why choose Sunny:

• Soft credit check only – won’t affect your score
• No fees from Sunny
• Compare offers before you commit
• 15-minute funding if approved

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

What Are Bad Credit Loans?

Bad credit loans are short-term borrowing options designed for people with less-than-perfect credit histories. Whether you’ve had County Court Judgements, missed payments, defaults, or simply a thin credit file, these loans focus on your current ability to repay rather than past financial difficulties.

Unlike traditional bank loans that rely heavily on credit scores, lenders in our network assess your present circumstances. They look at your income, employment stability, and current commitments to determine affordability. This approach gives you a fair chance to access funds when banks won’t consider your application.

Through Sunny, you can borrow from £100 to £2,500 with repayment terms ranging from 3 to 36 months. This flexibility means you can choose a loan amount and term that genuinely fits your budget, whether you need £200 to cover an unexpected vet bill or £1,500 for urgent car repairs.

Bad credit loans aren’t just for emergencies. Many customers use them to consolidate smaller debts, spread the cost of essential purchases, or simply bridge a temporary income gap. The key is borrowing responsibly and only taking what you can comfortably afford to repay.

If you’re looking for alternatives with different features, our partner lenders also offer emergency loans for urgent crisis situations, or you might consider small loans if you need smaller amounts under £500.

How Bad Credit Loans Work

The application process is straightforward and takes just a few minutes. Here’s what happens when you apply through Sunny:

Step 1: Complete our quick online form. We’ll ask for basic information about you, your income, and how much you want to borrow. The form takes around 2 minutes and can be completed on any device, 24 hours a day.

Step 2: We search our network instantly. Using your details, we search multiple FCA-authorised lenders who specialise in bad credit applications. This happens in seconds using a soft credit check that’s only visible to you.

Step 3: See your matches without affecting your credit score. If we find suitable lenders, you’ll see your options immediately. Each offer shows the loan amount, term, monthly repayment, and total cost. There’s no obligation to accept any offer.

Step 4: Compare and choose what works for you. Take your time reviewing the offers. Check the monthly payments fit your budget and understand the total amount you’ll repay. You’re in complete control.

Step 5: Complete your application with your chosen lender. Once you select an offer, you’ll be directed to the lender’s website to complete your application. They’ll perform a full credit check at this stage and verify your details. If approved, funds could reach your account within 15 minutes.

The entire process keeps you informed at every stage. You’ll know exactly what you’re agreeing to before any credit check affects your file. Many customers pair bad credit acceptance with speed by choosing same day loans that prioritise rapid transfers whilst still considering poor credit histories.

How Much Do Bad Credit Loans Cost?

Loans for bad credit typically carry higher interest rates than prime credit products because lenders take on more risk. However, all lenders in our network follow FCA regulations, including interest rate caps that protect borrowers.

Representative 89% APR is our standard rate, though your personal rate depends on your circumstances and could be anywhere from 9.3% to 1,721% APR.

Representative example: If you borrow £1,000 over 18 months at 89% APR (fixed), you’ll make 18 monthly payments of £102.42. The total amount repayable is £1,843.60, which includes £843.60 in interest.

For smaller amounts, costs differ. Borrowing £500 for 6 months typically results in monthly payments of around £123.45, totalling £740.70 repaid with a representative APR of 611.74%.

The rate you’re offered reflects several factors. Lenders consider your credit history, employment stability, income level, and the loan amount and term you request. Someone with recent missed payments might receive a higher rate than someone with older credit issues who’s since demonstrated responsible borrowing.

Understanding the total cost matters more than focusing solely on APR. A shorter loan term means higher monthly payments but less interest overall. A longer term spreads the cost, making monthly payments more manageable, but increases the total interest paid. If you want to minimise interest, consider a 3 month loan with higher payments but faster payoff.

All our partner lenders allow early repayment without penalties. If your circumstances improve, paying off your loan early saves you interest. This flexibility helps you stay in control of your finances.

Who Can Apply for Bad Credit Loans?

Bad credit loans are designed to be accessible, but lenders still need to ensure you can afford repayments. Here are the basic requirements:

Age and residency: You must be at least 18 years old and a UK resident. Lenders need to verify your identity and address history, typically requiring your addresses for the past 3 years.

Income: You need a minimum monthly income of £500 after tax. This can come from employment, self-employment, or certain benefits. Lenders verify income to confirm you can afford the monthly repayments alongside your other commitments.

Banking: You’ll need an active UK bank account and debit card. Lenders use this to pay funds and collect repayments via Direct Debit.

Credit status: Whilst lenders accept bad credit, you cannot be currently bankrupt or in an active insolvency arrangement. Past financial difficulties are considered, but ongoing insolvency proceedings prevent approval.

Employment: Most lenders prefer employed applicants with stable income, though some consider self-employed individuals and those receiving benefits. The key is demonstrating regular, reliable income.

What about specific credit issues? Lenders in our network regularly approve applications from people with CCJs, defaults, missed payments, and even previous bankruptcy that’s been discharged. Your past doesn’t automatically disqualify you. If you’re uncertain about eligibility due to particularly severe credit issues, bad credit payday loans combine flexible repayment terms with credit acceptance.

The affordability assessment matters more than your credit score. If you can demonstrate you’ll manage the repayments comfortably, you stand a good chance of approval even with poor credit.

Why Use a Broker Like Sunny?

When you need a loan with bad credit, applying directly to multiple lenders creates problems. Each application triggers a hard credit check, and too many searches damage your score further. You’re also guessing which lenders might accept you, wasting time on rejections.

As a broker, Sunny solves these problems. We search multiple lenders using just one initial application, and crucially, we start with a soft credit check that doesn’t affect your score. Here’s why this matters:

Access to multiple lenders, one application. Our panel includes specialist bad credit lenders with different criteria. Instead of applying to five lenders individually and risking five hard searches, you apply once with us and see multiple options.

Soft search technology protects your credit score. The initial eligibility check uses a soft search that only you can see. It’s invisible to other lenders and has zero impact on your credit score. Only when you accept an offer does the lender perform a hard search.

Better matching increases approval chances. We match your circumstances with lenders most likely to approve you. This targeted approach means fewer rejections and less damage to your confidence and credit file.

No fees from Sunny, ever. We never charge you for our service. Lenders pay us a referral fee when you accept a loan, but you pay nothing. No application fees, no service charges, no hidden costs.

FCA protection across all lenders. Every lender in our network is authorised and regulated by the Financial Conduct Authority. This means strict rules on affordability assessments, responsible lending, and fair treatment. You’re protected by the same standards regardless of which lender you choose.

Save time comparing. Instead of visiting multiple websites, filling out forms repeatedly, and waiting for individual decisions, you get instant matches in one place. This efficiency matters when you need money quickly.

The broker model works in your favour. We’re incentivised to find you the best possible match because our reputation depends on customer satisfaction. Our 4.5/5 star Trustpilot rating reflects this commitment to genuine service. For customers wanting independence, no guarantor loans let you borrow without involving family or friends.

Understanding Your Credit History and Loan Approval

Bad credit isn’t one single thing. It covers various past financial difficulties, and lenders view different issues differently. Understanding what’s on your file helps set realistic expectations.

Recent vs old issues: A missed payment from 6 months ago weighs more heavily than one from 5 years ago. Financial difficulties fade in importance over time, especially if you’ve since demonstrated responsible borrowing.

Type of credit issue: Lenders distinguish between different problems. Missing a mobile phone payment is viewed less seriously than defaulting on a previous loan. Bankruptcy typically requires 6+ years before mainstream lenders reconsider, but specialist lenders in our network may consider you sooner.

Current circumstances matter most: Lenders focus on your present ability to repay. Stable employment, regular income, and manageable existing commitments outweigh past difficulties. They’re assessing whether you can afford this specific loan now, not whether you made mistakes years ago.

Credit mix helps: If you’ve successfully managed a mobile phone contract, credit card, or other loan since your credit problems, this positive history rebuilds trust. Even small amounts managed responsibly demonstrate financial recovery.

Checking your credit report: Before applying, review your credit file with Experian, Equifax, or TransUnion. You’re entitled to free access, and checking it yourself doesn’t affect your score. Look for errors, outdated information, or issues you’d forgotten about. Correcting mistakes can improve your chances.

Remember, bad credit loans themselves can help rebuild your credit score if managed responsibly. Making every payment on time demonstrates reliability to future lenders. Each successful repayment is recorded positively on your file, gradually improving your rating.

Check your eligibility now

What makes us different:

• Over 1 million customers trust us
• 4.5 out of 5 stars on Trustpilot (7,385 reviews)
• 7,500+ daily quotes processed
• FCA-authorised broker and lenders
• No fees from Sunny – ever
• Soft credit check won’t affect your score

What to Consider Before Applying

Bad credit loans provide access to funds when banks won’t help, but they’re not suitable for everyone or every situation. Consider these questions before applying:

Can you afford the repayments? This is the most important question. Calculate your monthly income and subtract all your essential expenses – rent, bills, food, transport, existing debts. What remains must comfortably cover the new loan repayment with room for unexpected costs. If the numbers are tight, consider borrowing less or choosing a longer term to reduce monthly payments.

Do you genuinely need to borrow? It sounds obvious, but stress can cloud judgement. Is there another way to address your situation? Can you delay the expense, negotiate a payment plan, or ask family for help? Borrowing should solve a problem, not create new ones.

Have you borrowed just enough? It’s tempting to borrow more than necessary when a lender approves a higher amount. Resist this. Every extra pound borrowed costs interest. If you need £800, don’t borrow £1,500 just because you can. Keep your loan to the minimum required amount.

Is this an emergency or could you save up? If your washing machine breaks, that’s urgent. If you want money for Christmas presents in August, consider saving instead. Bad credit loans work best for unexpected, unavoidable expenses where waiting isn’t an option.

Can you improve your credit first? If your need isn’t immediate, spending a few months improving your credit score could qualify you for cheaper borrowing. Register to vote, pay bills on time, reduce credit card balances, and correct errors on your report. Better credit means lower rates and more options.

Would a smaller amount on a shorter term be better? Lower borrowing over fewer months means less interest paid overall, even if monthly payments are higher. Crunch the numbers both ways. Sometimes paying £150 a month for 6 months costs less total than £75 monthly for 12 months. For minimal borrowing needs, £200 loans prevent taking more than necessary.

If you’re already struggling with existing debts, taking on more borrowing rarely helps. Free debt advice services like StepChange and Citizens Advice can help you find better solutions. They can negotiate with creditors, set up payment plans, and explore debt management options you might not know about.

How Sunny Protects You

Borrowing money requires trust, especially when you’ve had credit problems before. Here’s how we protect your interests throughout the process:

FCA authorisation and regulation: Sunny (Upward Finance Limited, company number 11365247) operates as an Appointed Representative of Flux Funding Limited (FRN 806333), which is authorised and regulated by the Financial Conduct Authority. This regulatory oversight means we must follow strict rules on fair treatment, transparency, and responsible lending. Every lender in our network holds their own FCA authorisation.

Data protection and security: Your personal and financial information is encrypted and handled according to UK GDPR requirements. We never sell your data to third parties. Information is only shared with lenders you choose to apply with, and only after you give explicit permission.

Soft search protects your credit score: The initial eligibility check is a soft search visible only to you. It doesn’t affect your credit score and other lenders can’t see it. This lets you explore options safely without damaging your file. Only when you accept an offer and apply to a specific lender does a hard search occur.

No obligation to accept offers: Seeing your matches commits you to nothing. Review the offers, consider your options, and walk away if they don’t suit you. There’s no pressure, no follow-up calls, and no consequences for declining.

Clear information before you commit: Every loan offer shows the total amount repayable, monthly payment, interest rate, and term length. You’ll see exactly what you’re agreeing to before any credit check affects your file. No hidden fees, no surprise charges, no small print traps.

Cooling-off rights: Under Consumer Credit Act regulations, you typically have 14 days to change your mind after accepting a loan. Individual lenders provide specific cancellation policies when you apply, but this protection generally applies to most credit agreements.

Complaint procedures: If something goes wrong, we have clear complaint procedures. You can raise concerns with us, and if unsatisfied, escalate to the Financial Ombudsman Service at no cost to you.

The Application Process: What to Expect

Transparency about the process reduces anxiety. Here’s exactly what happens when you apply for a bad credit loan through Sunny:

Before you start, gather this information: Have your bank details ready (account number and sort code), details of your income (employment and pay frequency), your residential addresses for the past 3 years, and approximate monthly expenses. Having this information ready speeds up the application.

Step 1 – Initial application (2 minutes): Our online form asks for basic personal details, how much you want to borrow, and over what term. You’ll provide employment information and income details. Everything is done on one page, clearly labelled, with explanations for why we need each piece of information.

Step 2 – Soft search and matching (seconds): We instantly search our panel using your details. This happens in real-time. The soft credit check occurs during this stage – it’s invisible to other lenders and won’t affect your score.

Step 3 – View your results (instant): If we find suitable matches, you’ll see them immediately. Each offer displays clearly: loan amount, term length, monthly payment, total repayable, and interest rate. You can compare options side by side.

Step 4 – Choose and apply to a lender (5-10 minutes): Select the offer that works best for you. You’ll be directed to the lender’s website to complete your application. They’ll ask for additional verification details, proof of income (often via bank connection or payslips), and affordability information.

Step 5 – Hard credit check and decision (instant to 2 hours): The lender performs a full credit check at this stage. This is when the search appears on your file. They verify all your information and make a lending decision. Most decisions are instant, though some may take up to 2 hours during business hours.

Step 6 – Receive funds (15 minutes to 1 day): If approved, the lender transfers funds directly to your bank account. Many offer 15-minute transfers, though timing depends on your bank’s processing speed. Most customers receive money the same day if approved before 4pm on a working day.

After approval – What happens next: You’ll receive a credit agreement by email showing all terms. Read this carefully. It confirms your loan amount, term, interest rate, monthly payment amount, payment dates, and total repayable. Your first payment date will be clearly stated, typically one month from when you receive the funds.

The entire process, from initial application to funds in your account, can happen within an hour if all goes smoothly. However, don’t rush. Take time to review offers and ensure the loan fits your circumstances. For substantial amounts, £1500 loans provide flexibility for larger expenses whilst remaining affordable.

Find your match today

Why you can count on Sunny:

• Over 1 million customers since 2022
• 4.5 out of 5 stars on Trustpilot (7,385 reviews)
• 7,500+ daily quotes processed
• FCA-authorised broker and lenders
• Never any fees from Sunny
• Soft credit check won’t affect your score

Warning: Late repayment can cause you serious money problems.

Representative Example: Representative 89% APR. Borrowing £1,000 over 18 months at 89% APR (fixed) means 18 monthly payments of £102.42. Total amount repayable: £1,843.60. Total interest: £843.60. Rates from 9.3% to 1,721% APR. Your rate depends on your circumstances.