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Shopping around for the best deals on loans for people with bad credit is essential. Interest rates can vary enormously between products so it's essential you compare what is on offer.

Click the 'Compare Loans' button to get a list of some of the loan products and brokers. When comparing products, the key aspect is the APR which stands for annual percentage rate. This is a standardised way of expressing the cost of borrowing, i.e. the amount of interest you will pay. The higher the APR, the more expensive the borrowing.

Risk based pricing

Usually there is a direct correlation between the APR a lender will charge you and the lenders assessment of the risk you pose of defaulting on your repayments. Generally speaking, the higher a credit risk you pose, the higher the APR the company will ‘offer’ you. This is known as risk based pricing. Lenders are likely to regard you as being a higher credit risk if you have been late or defaulted on repaying previous debts or conversely, have little or no credit history on which a lenders can determine your reliability as a borrower.

Loans suitable for people with bad credit