A bad credit loan is one that can help people to borrow even if their credit score has taken a hit, or if they haven’t built one yet. Maybe you’ve missed a few payments in the past, or just never had credit in your name before. Whatever the reason, these loans might give you a chance to borrow when other lenders say no.

They can be handy if you need a cash boost to cover unexpected costs, like a big MOT bill or an expensive visit to the vet or dentist. And if you repay on time and in full, a bad credit loan might actually help rebuild your credit score over time. It’s not a magic fix, but it’s a step in the right direction.

There are licensed lenders who specialise in this kind of borrowing, so it’s worth comparing to find the best deal you can. But please remember that these loans usually come with higher interest rates, and be sure to borrow responsibly.