Having developed a poor credit record is a norm nowadays. It is easy to get trapped in your financial woes nowadays , thanks to the cost of living inflating at a rapid pace. You may have missed out on your monthly utility bills; and you might be  defaulting on your payday loans and credit card payments.  As a result, you may need a long-term loan to go along with it.

But Why Would I Even Need a Long Term Loan?

Now with a bad credit you may be seeking for a long-term loan that could help you sort out the debts, which initially got you in this place, while you also get the flexibility to repay it with ease?


You could be looking to expand your business, which has hit a threshold, but fearing that having a bad credit may impact your chances of securing a normal personal loan.


You could be using it as a tool to repair that very bad credit record which you have.

Don’t worry, whatever the need, we are here to guide you with your options about taking a long term loan even with a bad credit history.

Know Your Target Area

Since you have defaulted in the past, no lender in UK will take a gamble on you. After all, they value their investments and are not running a charity. But if they can get to have some security or a guarantee over the loan that they would be parting with, chances are that you will be granted with a long term loan easily. This is the area that you need to focus on.

Can you be more specific?

Secured Loans From Institutions

A secured loan is a financial instrument that can be acquired by pledging an asset against the loan that you are applying for. So if you turn out to be a defaulter in future, institutions can compensate for their loss by confiscating the asset that you secured against your loan. Even with an impaired credit score, you can end up securing a loan which is usually termed over 5 to 20 years, without much hassle.

Secured Loans From Individuals

No different to the ones that are obtained from a bank or a credit union, secured loans from individuals, also called p2p lending, is another alternative for people looking to get a long term loan with a bad credit history. The advantage that it poses over conventional secured loans is that you get a lower interest rate than what banks and credit unions would offer.

Unsecured Loans with a Guarantee

Another long term loan option that you can explore with bad credit is that of guarantor loans. These are unsecured loans but you have to provide a guarantor that is willing to take the responsibility if anything goes wrong with you.

It’s Not the End of World

Having a bad credit history does not mean that you are hung up with a plateau-ed business or you can’t get a loan that can address your needs. All you need to do is remain positive and research the market, because the possibilities are there to be explored.