Long Term Loans For Poor Credit (Bad Credit)

Long term loans refer to loans that have a longer tenure or repayment period.

When you borrow a long term, you’ll get a more extended repayment plan of a year or more, even with bad credit.

There are lenders in the UK who specialize exclusively in lending to those with poor credit scores.

Long term loans for bad credit are designed to be paid off over more extended periods than typical payday loans or short-term loans.

You can spread the costs of repayments from one year to up to 20 or 30 years!

Here’s everything you need to know about long term loans for bad credit in the UK:

Getting Long-Term Loans For Bad Credit

Lenders specializing in helping those with bad credit scores are less fixated on the borrower’s credit history.

The term is broad, and you can be deemed a bad credit borrower for various reasons.

Having bad credit simply means you have negative scores on your credit report because you failed to repay a previous loan in full, were bankrupt, or defaulted on a loan.

It can even be that you made one late payment on a loan in the past, and although this shouldn’t be held against you, it often is.

Even a non-existent credit history can have you labelled as a bad credit borrower.

This can be the case if:

  • You recently relocated to the UK and have a zero-credit history since they can’t be transferred across borders.
  • You’re a young adult who hasn’t built their credit history.
  • You’ve never borrowed or opened a bank account.

The good news is that specialized lenders will treat you as an individual and not a label.

Based on the facts, they’ll readily help you if you have a less than perfect credit score or no credit history.

Instead of focusing on your credit score, they consider facts like your income, how you handle your finances now and whether you can afford to make monthly repayments in the long term.

Related quick help guides: 

Features Of Long-Term Loans For Bad Credit

Your past financial hurdles are not used against you among specialized lenders who offer long term loans for bad credit. Depending on the lender, you may still get the same features of typical long-term loans. These include:

High Loan Amounts

Long term loans for bad credit allow you to borrow more significant amounts and spread the cost into management monthly repayments over a more extended period.

However, some lenders may cap the amount they offer to borrowers with bad credit to limit the risk involved. Even when restricted, you may still get higher limits than shorter-term loans with bad credit.

Low-Interest Rates

You may also get lower interest rates because you have to repay the loan over a long period. Usually, long term loans for bad credit come with lower APR c0mpared to payday and short-term loans.

Lenders are willing to offer attractive interest rates because they’ll make their money over a longer term. Remember, a long-term loan for bad credit may have a higher APR than a usual long-term loan to reflect the risk involved.

Instalment Repayments

Instalment repayments are synonymous with long term loans. Unlike short term loans, where you may have to repay in a lump sum at a specific time, you can easily repay long-term loans for bad credit in small manageable instalments.

This involves regularly scheduled monthly payments that you can easily manage because they’re spread over a longer term of one to 30 years!

Uses Of Long-Term Loans For Bad Credit

Long term loans for bad credit are suitable for all kinds of financial needs, whether big or small. They can come in handy in emergencies and different situations like:

Home Improvement

A home improvement project can be costly, but with a long-term loan, you can get considerable amounts to cover the costs of your desired goals. Your home is your biggest asset, so it’s wise to look for ways to add value to it and invest in your property. Whether it’s a new kitchen, bathroom, extensions or conversions, a long-term loan for bad credit can help you fulfil your renovation needs.

Debt Consolidation

It can seem like there’s no way out when you’re struggling under the weight of unmanageable debt. A long-term loan for bad credit can help you combine multiple debts into one for easier repayment and management.

Thanks to the higher amounts offered, you may be able to consolidate your debt and reduce the number of repayments and creditors you have to deal with.

Business and Personal Financing

Businesses often need cash injections for current and future needs like resources, stock, investing in new premises or expansion. You can also use long term loans for bad credit to finance personal goals like buying land, a car, a home, education advancement, weddings or taking your family on vacation.


Lenders may require some kind of collateral as security for long term loans for bad credit. This usually involves linking the loan to an asset like your home, car, stocks, equipment or other valuables.

The asset acts as security until you pay off the loan, and in case you default or fail to repay, they can take possession and sell it as a last result.

You’ll be motivated to repay to avoid losing your property, making it easy to get approved for long term loans even with bad credit. It’s vital to ensure you can afford to make repayments before you apply.


Incorporating a guarantor will open many borrowing doors if you’ve struggled to get long term loans because of bad credit history. Having a guarantor means you have the financial backing of a family member or friend who agrees to meet the loan repayments when you’re unable to pay.

This is encouraged for borrowers who can’t access funding independently because of low income, inadequate credit and other reasons. The loan is effectively guaranteed, allowing the lender to advance long-term loans for bad credit at better rates and terms.

Your guarantor has to have an excellent financial position and credit rating.

Long Term Loans For Bad Credit Final Thoughts

Remember, long-term loans for bad credit will have a higher overall borrowing cost because you’ll be repaying the debt over a more extended period that can last decades. However, the monthly repayments will be lower.

Give Loanable a call today on 01925 988 055 and they will provide you with the best deals available to meet your circumstances and consider any credit history you may have. With their expert advice, they can guide you through the process and give you the knowledge and confidence it takes to acquire a secured loan that is right for you.

If you have read all the information on secured loans carefully and feel that you want to proceed with a secure loan, get in touch with one of Loanable’s secured loan experts by emailing hello@loanable.co.uk who can work with you to find the best deal for your needs and circumstances.

Free, No Obligation Quotes!

Whether you need a homeowner loan or a mortgage on a property, all our quotes are free and given with pleasure.

More mortgage advice