Loans for Bad Credit
Looking for loans for bad credit? Monixa could help you borrow money from £200 to £1,500, repaid over 4 to 6 months. We are an FCA authorised lender. Checking your eligibility won't affect your credit score. Apply online 24/7 for a decision in seconds. If approved, cash is sent to your bank within 90 seconds†.
Representative 1230% APR
Loan calculator
Select your amount and term to see example repayments.
Representative Example: Given a Representative 1230% APR, if you borrow £300.00 over 6 months at 292% p.a. (fixed), you would owe 6 equal repayments of £100.00. You will repay £600.00 in total.
Quick summary
- Borrow £200 to £1,500
- Repay over 4 to 6 months
- Soft search eligibility check
- No hidden fees or early repayment penalties
Please be aware that the figures displayed are an example. The amounts applicable to your loan may differ depending on the length of time between the date of the loan and the first repayment.
Representative 1230% APR
Applying won't affect your credit score (unless you actually take out a loan).
Why Choose Monixa for Bad Credit Loans?
FCA Authorised Direct Lender
We are an FCA authorised and regulated direct lender (FRN 672828). This means we handle your application from the start to the final Repayment. No brokers involved.
Borrow £200 to £1,500 with an Instant Decision
Choose any loan amount from £200 to £1,500. Our system checks your loan application in seconds and provides an instant decision. New customers may start with a smaller amount, and existing customers with a good repayment record can borrow more.
Repay Over 4 to 6 Monthly Instalments
At Monixa, we allow you to split the cost into 4 to 6 fixed monthly repayments. You know the exact amount leaving your account each month, which makes budgeting simpler.
No Hidden Fees, No Early Repayment Charges
We charge no application fees, no arrangement fees and no extra fees for paying off early. Interest is charged daily, so early repayment cuts the interest you pay and helps you save money.
Representative 1230% APR
What Our Customers Say About Us?
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What Are Bad Credit Loans?
Bad credit loans, also called loans for people with bad credit, suit anyone with a poor credit history or a low credit score. They let you borrow money when banks or mainstream lenders say no. Most bad credit loans are unsecured small loans, from a few hundred pounds to a few thousand. You do not need to put up your home or car as security. Because the lender takes on more risk, these loans usually carry higher interest rates than a standard personal loan.
At Monixa, our short term loans run from £200 to £1,500 and are repaid in fixed monthly repayments. They suit short-term needs such as an unexpected bill, not long-term borrowing.
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How Do Bad Credit Loans Work?
Bad credit loans work like any personal loan. You borrow a fixed loan amount, agree a borrowing period and make equal monthly repayments with interest.
The main difference is how lenders assess you. Specialist lenders look beyond your credit score. They focus on your income, employment history and essential outgoings. Many also look at your debt-to-income ratio, which compares what you owe with what you earn.
At Monixa, we use this wider view to make fair lending decisions. If your finances show you can comfortably afford the repayments, a low score alone will not stop your application. Every loan is still subject to status.
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What Counts as Bad Credit in the UK?
Bad credit means your credit file shows a history that makes many lenders see you as higher risk. Each credit reference agency, such as Experian, Equifax or TransUnion, uses its own scale.
Common causes of a poor credit score:
Missed payments or late repayments on bills, cards or loans
A CCJ, default or IVA on your record
Using a high share of your available credit
Too many credit applications at once
A limited credit history, common for young people and new UK residents
Your credit report shows lenders how you have handled every card, personal loan and bill over the last six years.
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Can I Get a Loan with Bad Credit from Monixa?
Yes, you can apply for a loan with bad credit at Monixa. We consider every application on its own merits, not on your credit score alone. A missed payment years ago, past financial difficulties or a bad credit rating does not mean you cannot manage a loan today.
We look at your current income, your existing debts, your regular spending and whether the monthly repayments fit your budget. We carry out credit and affordability checks on every application. This is part of responsible lending and protects you from serious money problems.
Not all applications will be approved. Offers of credit are subject to status and affordability checks.
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Who Can Apply for a Bad Credit Loan with Monixa?
You can apply for a loan with bad credit at Monixa if you meet our lending criteria. You must:
Be aged 18 or over
Be a UK resident
Have a stable job and a regular income of £1,500 or above per month
Hold a UK bank account and a valid debit card
Have a mobile number that can receive text messages
Meeting these criteria lets you apply, but it does not guarantee approval. Our affordability assessments then review your financial circumstances, including your income, outgoings and any existing credit commitments. We need to see a stable income that leaves room for your loan repayments after bills. Benefits and self-employed income do not meet our criteria.
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How to Apply for a Loan with Bad Credit at Monixa?
Our online application process takes a few minutes, and you can apply 24/7. Here is how it works:
Fill in the application form
Fill in our online application form with your personal details, income and employment information in our short loan application. The application process usually takes just a few minutes.
Soft search
We run a soft credit check first, so there is no impact on your credit file. We review your financial circumstances to reach a lending decision. This happens in seconds.
Review your loan offer
If your application is approved, you receive a full breakdown of your monthly repayments, repayment schedule, and the total cost of your loan.
Get your money
If you accept the offer, the funds will be sent to your bank within 90 seconds†. Same day transfers mean you can have the funds ready to use almost immediately.
You can borrow money online any hour with us, including weekends and bank holidays. Your soft search only becomes a hard credit search if you accept your loan offer and sign the agreement.
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How Much Do Bad Credit Loans Cost?
Bad credit loans cost more than mainstream borrowing. Lenders charge higher interest rates to cover the extra risk, and many specialist products carry high APRs.
At Monixa, interest is fixed at 292% p.a. and charged daily. There are no upfront fees. If you miss a payment, we may charge a £15 fee. FCA rules cap late payment penalties on high-cost short-term credit at this level.
Representative Example: Given a Representative APR of 1230%, if you borrow £300 over 6 months at 292% p.a. (fixed), you would owe 6 equal repayments of £99.71. You will repay £598.25 in total.
Use the representative APR to compare loans fairly. Borrowers should compare total costs including APR, fees, and loan terms before accepting a loan.
Representative 1230% APR
Can I Repay My Bad Credit Loan Early?
Yes. You can repay your Monixa loan early at any time, in full or in part, with no early repayment fees. Because we charge interest daily, clearing your balance sooner means you pay interest for fewer days. That is one of the simplest ways to save money on the total cost of borrowing. Even on small loans, one extra payment can cut what you owe.
To repay early, log in to your Monixa account or contact our team for a settlement figure. We will confirm the exact amount due on that day. Making repayments on time or early also shows future lenders that you manage credit well.
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When Should You Avoid Borrowing with Bad Credit?
Borrowing with bad credit can make financial difficulties worse if the repayments do not fit your budget. Think again if:
You need to borrow to repay another loan
You already juggle several existing credit commitments
You cannot see how you will meet the repayments each month
A lender promises to guarantee approval with no checks
Late repayment adds fees, damages your credit history and can lead to serious money problems. Check any lender's name and trading style on the FCA Register. Private lenders can have significantly higher costs for loans to borrowers with poor credit.
If money problems keep coming back, free debt advice from StepChange, MoneyHelper or Citizens Advice gives you independent guidance first.
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What Types of Loans for Bad Credit Are Available in the UK?
There are three main types of bad credit loans in the UK: unsecured, secured and guarantor loans. Credit unions offer a fourth option. Each suits a different situation, so compare loans on total cost and risk before you choose the right loan.
Unsecured Short Term Loans
An unsecured loan needs no collateral, so your home and car stay safe. Most loans with bad credit, including Monixa's, work this way. They carry higher interest rates, but small loans like these are easier to manage.
Secured Loans
A secured loan uses an asset, usually your home, as collateral. You may borrow more at lower rates. But if you miss repayments, the lender can repossess your home, so a secured loan carries serious risk.
Guarantor Loans
A guarantor loan needs a friend or relative to agree to cover your repayments if you cannot pay. Their support lowers the lender's risk, which can help you get a loan with bad credit. Missed payments affect them too.
Credit Union Loans
Credit unions are community lenders that often look beyond credit scores. Their interest rates are capped at 42.6% APR in Great Britain. Many credit unions offer loans as a cheaper alternative to payday loans.
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Bad Credit Loans vs Payday Loans: What Is the Difference?
The difference is how you repay. A payday loan is due in one lump sum on your next payday. Bad credit instalment loans spread the cost over several months.
| Feature | Monixa Loan (bad credit considered) | Payday loan |
|---|---|---|
| Repayment | 4 to 6 monthly repayments | One time full payment on next payday |
| Monthly pressure | Smaller as you repay the amount in fixed monthly instalments | High as you need to repay full balance at once |
| Early repayment | At Monixa, we charge no early repayment fees | Varies between lenders |
Payday loans can trap borrowers in a cycle of debt when one loan is used to pay off the last. Monixa does not offer payday loans. Our short term loans give you more time to repay.
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How Can I Improve My Bad Credit Score?
You can improve your credit score with a few steady habits. Most changes take months, not days, but they open up better borrowing options over time.
Check your credit report for errors with each credit reference agency
Register on the electoral roll so lenders can confirm your address
Pay every bill on time, including utility bills and monthly repayments
Keep credit card use under 30% of your limit
Avoid lots of applications in a short period. Use eligibility checkers instead. Prequalifying for a loan can help avoid hard inquiries that negatively impact credit scores.
Try a credit-builder card and clear it in full each month
As your credit rating improves, you may find loans with lower interest rates.
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Frequently Asked Questions About Loans for Bad Credit
Is Monixa a Bad Credit Loans Direct Lender?
Yes. Monixa is a bad credit loans direct lender, authorised by the FCA (FRN 672828), that lends its own money to people across the UK, including those with bad credit. We are not a broker. Your loan application stays with us from the moment you apply until your final repayment, with no third parties involved.
Can I Get a Loan with Very Bad Credit?
Possibly. Very bad credit makes approval harder, but not impossible. When you compare very bad credit loans direct lenders, focus on your current income, spending and ability to meet repayments. Borrowing a smaller loan amount can improve your chances, because small loans fit more easily into a tight budget. Every application is still subject to affordability checks.
Can I Get a Loan with Bad Credit and No Guarantor?
Yes. Monixa does not ask for a guarantor. You apply on your own, and we base our decision on your income, outgoings and credit history. Nobody else signs your agreement or takes on your debt. A guarantor loan is one option elsewhere, but it puts a friend or relative's finances at risk.
Will Checking My Eligibility Affect My Credit Score?
No. Checking your eligibility with Monixa uses a soft search, which does not affect your credit score. Other lenders cannot see it. The search only becomes a full credit search if you accept your loan offer and sign the agreement. The search and the loan will then appear on your credit file.
Can I Get Bad Credit Loans with No Credit Check?
No. Every FCA authorised lender in the UK must check your credit and affordability before lending. This is responsible lending, and it protects you from unaffordable debt. Any firm offering loans with no checks is either unregulated or misleading you. Monixa starts with a soft search, so applying won't harm your score.
Can Any Lender Guarantee Approval for Bad Credit Loans?
No. No regulated lender can guarantee approval, because FCA rules require affordability assessments on every application. Treat any promise of guaranteed acceptance as a warning sign. Trusted lenders give you a fair decision based on your financial situation. At Monixa, we consider bad credit, but offers of credit are always subject to status.
Can I Get a Loan with a County Court Judgment (CCJ)?
It depends on the lender. A CCJ shows you failed to repay a debt, so it can limit your loan options for six years. Some specialist lenders still consider applicants with a CCJ for small loans, especially if it is old or settled. At Monixa, we currently do not lend to applicants with a county court judgment.
How Quickly Can I Get the Money?
Very quickly. You get a decision in seconds, and if we approve your application, we send the money to your bank within 90 seconds†. Your bank's own processes can sometimes add a short delay. Most approved customers receive their funds on the same day, including evenings and weekends.
Can a Bad Credit Loan Help Improve My Credit Score?
Yes, if you manage it well. Making all repayments on time adds positive records to your credit history, which can slowly improve your credit score. Late repayment has the opposite effect and can cause serious money problems. Credit-builder loans work in a similar way, but they do not give you cash upfront. Borrow only what you can comfortably afford.
Can I Get a Bad Credit Loan If I Am on Benefits?
No. Monixa only lends to people with a stable income from employment. We cannot accept benefits as your only source of income. If you need financial help on benefits, you may qualify for a Budgeting Advance from the DWP, or a loan from a local credit union. MoneyHelper offers free independent guidance on your borrowing options.