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Your loan details

You want to borrow: £1.500
Over a period of: 18 months
Repaying: £113.07 p/m
Total repayable: £2,023.75
Interest rate: 41.16% (fixed)
Representative: 49.9% APR
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Borrow up to £7,500 with the UK's friendliest bad credit loans company

Representative Example
Credit £3,250 for 36 months | Interest (fixed at 41.16%): £2,464.57. | Total amount payable of £5,714.67.
Representative 49.9% APR. | 36 repayments of: £158.57.

Loans for People with Bad Credit

If You’ve got Bad Credit but a Good Buddy...You can Get a Loan!

  • Loans from £1,000 to £7,500
  • Can be paid back over 12 months or up to 60 months
  • Competitive interest rates
  • Bad Credit in the past NO PROBLEM!
  • No credit, not a problem
  • No upfront fees or charges to apply
  • Money can be in your bank account within 24 hours
  • No early repayment fees
  • You can rebuild your credit
  • A loan for any purpose
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Just because you may have had poor credit in the past, or you may have weak or no credit, that doesn't mean you cannot get approved for a Buddy Loan.

You could be approved for a loan of £1,000 to £7,500 within 24 hours, and the loan can be for whatever purpose you require. It may be for a car, home improvement, wedding, debt consolidation, educational costs, whatever you need a loan for, a guarantor loan can be the solution.

Bad Credit Not a Problem!

Buddy Loans are a popular way for someone who may not be approved for an unsecured personal loan because they don't meet the "traditional" credit scoring guidelines, or because they may have had credit problems in the past.

Your credit history and credit score, are not used in approving a Buddy Loan.

Here at Buddy Loans we look at two main points to approve a loan:


Your Guarantor

If you can afford the repayments on the amount you wish to borrow, and have a guarantor, a friend or family member who feels you will pay back the loan, your loan can be approved and the money in your bank account within 24 hours.

(In some instances it may take longer depending on if we require further details.)

Interest Rates on Bad Credit Loans

Buddy Loans have a lower interest rate than other "bad credit loans" such as Payday Loans.


Payday loans can have APRs of 1,500% or even 2,000% or higher, and these loans need to be paid back on your next payday, usually within 30 days. Our representative interest rate is 49.9% APR.

With a Buddy Loan you can borrow up to £7,500, and spread the payments over 24 months, 36 months, or up to 60 months!

Between the lower interest rates and the longer term to repay the loan, Buddy Loans are a better option for someone with weak, poor, or no credit who need a loan.

Also Buddy Loans do not require any collateral, or to be secured with something, like a Logbook loan does. Logbook loans are secured with your car, and if you fail to make the payments, you could lose your car.

Who Should Consider a Buddy Loan?


Someone with a poor credit history or bad credit, who may have been rejected or denied a loan in the past. Even if you have had CCJs or defaults in the past, you can be approved for a guarantor loan such as a Buddy Loan.

Someone who needs a loan quickly for whatever reason, a home repair, car repairs, home improvements, to buy a car, or to consolidate other high interest rate bills or debts. (Debt Consolidation)

Someone with no credit, who requires a loan, but has no credit history and is looking to begin building a credit history.

Someone who doesn't want any pre-payment penalties, and is not charged a fee to repay their loan early.

Someone who is in need of a loan but doesn't want to pay any upfront fees, or administrative charges, and wants the loan to be approved quickly.

If you have been denied a loan in the past due to:

  • Bad credit
  • No credit
  • No collateral

Then a Buddy Loan may be your best option!

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What Are the Benefits of a Buddy Loan?

  • If you have been refused a loan in the past, not a problem.
  • Credit scoring is not used to determine or approve the loan.
  • Buddy Loans do not impact your credit score negatively by having inquiries or footprints placed on your credit report.
  • The money can be paid to you within 24 hours.

  • The guarantor can be a homeowner or a non-homeowner (tenant).
  • Buddy Loans can improve your credit score and credit rating by repaying the loan on time.
  • Buddy Loans are a cheaper way to get a small loan and pay it back in an affordable manner.
  • Lower interest rates than Payday loans, and longer terms to reduce the monthly payments
  • No upfront fees, there are no fees to apply and no fees once approved for the loan.
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The Basis of a Buddy Loan is the Guarantor.

Buddy Loans are an unsecured, personal loan.

The loan is not secured by a property, car or any other form of collateral.

The loan can be used for any purpose such as to buy a car, improve a property, move house, fund an educational interest.

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Why is Credit Not An Issue With a Buddy Loan?

The basis for the loan is not credit scoring, but the guarantor.

If you have a good buddy, with decent credit, and they feel you will repay the loan and guarantee the loan, then you can be approved for a loan with Buddy Loans.

Who Can be my Buddy?

A family member

A close friend

A work colleague

Anyone who knows you and feels you will repay the loan.

Affordable Payments

Payments for a Buddy Loan can be spread out across 12 months to 60 months, depending on the amount of your loan and what you can afford to pay each month.

By extending the term of the loan out further than 30 days as in the example of a payday loan, and having lower interest rates for the loan than a payday loan, it makes the repayments much more affordable.

How Do Buddy Loans Approve Someone With a Poor Credit History?

Loan Approved

If you were to go to a high street bank or lender and apply for a loan, the first thing they are going to do is to look at your credit score and your credit history.

If your credit score is low, or not as high as the bank or lender requires in order to grant/approve a loan, your loan request will be denied.

Being approved for unsecured personal loans can require a high credit score as to the lender, these are risky loans.

Having a guarantor adds a third component to the lending equation, between you and the lender. Your guarantor breaks the chain between your borrowing and credit past, which may have been bad credit, and your borrowing and credit future.

Having a guarantor helps you to rebuild your credit and re-establish yourself credit wise.

The strength of the loan is based on your guarantor, someone who knows and trusts you and will be responsible for the loan's repayments, should you struggle for any reason to repay the loan.

At Buddy Loans getting approved does not rely on credit scores or credit history or credit rating, it relies on the guarantor knowing you and feeling you are a good risk for a loan.

Loan Application

How Easy is it to
Get a Buddy Loan?

Simply complete our quick and easy online application form, to begin the process.

Your loan could be approved and the money in your bank account within 24 hours.

So why wait???

Apply today and the money could be in your account tomorrow!

Loan Application

a Guarantor?

Sometimes it may be easier and make the loan process flow quicker if you have a guarantor in mind prior to applying for a loan.

They do not need to be homeowners, but they do need decent credit, ideally a guarantor who is a homeowner may make for quicker approval.


Buddy Loans is a direct lender rated 5/5 stars by based on 1128 merchant reviews



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Representative Example


36 months

£158.57 p/m

Total Repayable

Interest Rate
41.16% (fixed)

Representative 49.9% APR.

Terms and Conditions apply. Suitable Guarantor required. All loans are subject to status and affordability checks prior to approval. All applicants must be 18 or over.

Frequently Asked Questions

Most asked Bad Credit Loans related questions

I have bad credit from the past, can I still get a Buddy Loan?

Yes, Buddy Loans are not decided on and approved by credit scores or credit history. The loan is approved based on the borrower's affordability, and the fact there is a guarantor for the loan.

If you can afford the repayments, and have a guarantor, then you can receive a Buddy Loan.

What is a guarantor?

    A guarantor is someone you the borrower knows, it can be a family member, good friend, or a work colleague who feels you will pay back the loan. They then guarantee the loan and sign as a guarantor. This means that should you the borrower fail to pay back the loan, they will then be responsible for the loan.

Who can be my guarantor?

A good friend, a family member, or even a work colleague, anyone who knows you, and feels you are good for the loan. The strength of a guarantor loan is the fact there is someone guaranteeing the loan. They are saying I know this person will repay the loan.

Does my guarantor have to be a homeowner?

No, as long as your guarantor has good credit, that is all that is required.

Can my guarantor have bad credit?

No, your guarantor must have fairly good credit. If they are a homeowner, they may have some slight credit issues, but if they are not a homeowner, they will need to have good credit.

As a guarantor, what is expected of me?

As a guarantor you are signing on the loan stating, if my buddy fails to repay the loan, I will pay it. If the borrower does not meet the repayments, you are then liable for the payments.

What if I struggle with my Buddy Loan payments just for a little while?

If you miss payments on your Buddy Loan, your guarantor will be contacted and expected to make/pay these payments. If after a period of time you can pay the payments again, then that is fine, you begin making the payments once you have sorted out your financial situation.

What can I use a Buddy Loan for?

A Buddy Loan can be used for a variety of reasons. You can buy a car, consolidate other accounts/debts, it can be for improvements to your home, for a wedding, anything you require a loan for, you can use a Buddy Loan.

Are Buddy Loans bad for your credit?

No, in fact if you are the borrower and repay the loan it can help you in rebuilding your credit, using the paid loan as a credit reference.

If a borrower were to default on a guarantor loan, then the guarantor is expected to pay the payments. Should the guarantor fail to do this, then it could affect their credit showing as a default.

Can I get a car financed using a guarantor loan?

Yes, you can use a Buddy Loan for whatever purpose you require, such as for a car. In many ways getting approved for the loan, and knowing how much you have to spend on a car can be helpful.

You can look for a car within your price range and budget as you know how much you have to spend. You can also negotiate as a cash buyer as you already have your loan or car financing in place.

If I use a guarantor loan to buy a car and miss a payment, will the car be repossessed?

No, the car will not be repossessed. If you struggle to pay your Buddy Loan back, the guarantor for the loan will be asked to make the payments. The loan is not secured by the car, but by your guarantor.

Can my spouse or partner be my guarantor?

Yes, as long as they meet the criteria for being a guarantor, meaning they have good credit and are not tied to you financially with other obligations.

What if I cannot get a guarantor, can I still get a Buddy Loan?

Unfortunately no, all Buddy Loans does is guarantor loans. You need a good buddy in order to qualify for a Buddy Loan.

Can I pay my loan off early?

Yes, you can pay the loan off early with out any additional fees or charges. You only pay interest for the time you have the loan.

Why don't I just get a payday loan, you can have bad credit and be approved for those?

That is true that payday loans do not use credit scores or credit history as a part of the approval process for a loan. However, payday loans are short-term loans until your next payday. They are also for lower amounts, just £100 or £200. They also carry very high interest rates/APRs of almost 2000% or more.
A Buddy Loan is flexible, in that you can borrow up to £7,500, and pay it back over 24, 36, or even 60 months (5 years).
This flexibility makes the monthly payments more affordable.
In addition, the interest rates on a Buddy Loan are much lower than on a payday loan. Why pay that much in interest if you don't have to.

What is the process to get a Buddy Loan?

As a borrower you complete our quick and easy online application. We then will contact your guarantor for their information as well.
You are both asked to complete an income and expense form so we can verify you can afford the loan.
Once all this is complete, your loan can be approved, and the money in your bank account.

Suppose I change my mind?

Changing your mind is fine. If you change your mind before the loan is approved and the money sent to you, just let us know. If you change your mind shortly after the loan is approved and you are in receipt of the money, contact us and we can advise on how to arrange to send the money back.

I have no credit history, can I still get a Buddy Loan?

Yes, having no credit history is not a problem to be approved for a Buddy Loan. Credit scores and credit history are not considered for a guarantor loan, only the guarantor.

Can I apply for a Buddy Loan even if I am still living at home with my parents?

Yes, the basis for a Buddy Loan is that you can afford the loan, and that you have a guarantor. If you are working and can afford the repayments, it doesn't matter if you are still living with your parents.

Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.