★ Jolly Good Guide Information only — not financial advice Free help · 0800 138 1111
Step 01

I have bad credit

Your credit score is low, you have been rejected for credit, or you have defaults or CCJs on your file. You want to understand your options without making things worse.

Who this is for: People who have been turned down for credit, who have missed payments, who have defaults, CCJs or an Individual Voluntary Arrangement, or who simply do not have enough credit history to satisfy a lender.
Step 02

First things to check

  • 01 Check your credit file for errors — they are common and can be corrected. Free services include Experian, Equifax and TransUnion (all available online without a paid subscription).
  • 02 Work out whether you need the credit now, or whether waiting and rebuilding your score first would leave you better off.
  • 03 If you are already struggling with repayments on existing debt, talk to a free debt charity before applying for anything new.
  • 04 Avoid applying to multiple lenders in quick succession — each hard search can lower your score further, and a run of rejections makes the next application harder.
Step 03

Know the risks

⚠ Before you proceed
  • High-rate products specifically target people with bad credit — compare carefully before committing
  • Applying to multiple lenders in a short time can further damage your credit score
  • Guarantor loans put your guarantor's credit and finances at risk, not just yours
  • Payday and high-cost short-term credit can trap people in a cycle of debt
Step 04
Read these guides first
Step 05

Use a tool or checklist

Tool
Borrowing Affordability Checklist
A structured checklist to run through before applying for any loan — to make sure you have considered the risks.
Open →
Tool
Credit Score Improvement Plan
A personalised action plan to improve your UK credit score over 3–12 months.
Open →
Step 06

When to get free help

Important

If you are already behind on essential bills — such as rent, mortgage, council tax or utilities — or if you have debts you cannot see a way to repay, speak to a free debt charity before applying for any new credit. Taking on more borrowing in this situation is unlikely to help and may make things significantly worse.

Useful terms to know

CCJ (County Court Judgement) A court order issued in England and Wales when you fail to repay money you owe. … Credit score A number produced by a credit reference agency that summarises your credit histo… Default A default is recorded when you fail to make repayments for a sustained period — … Hard search (hard credit check) A full credit check that leaves a record on your credit file visible to other le… Guarantor A person who agrees to repay a loan if the primary borrower fails to do so. Guar… Soft search (soft credit check) A credit check that doesn't leave a mark on your credit file visible to other le…
Free help

Struggling with debt? Free charities are ready to help.

These organisations offer free, confidential, impartial advice — no referral fee, no catch. They help thousands of people every week.

StepChange

Free debt advice charity

0800 138 1111
National Debtline

Free, independent debt advice

0808 808 4000
MoneyHelper

Free money guidance (govt-backed)

0800 011 3797