If your credit score is less than perfect, you might feel that your borrowing options are limited. Credit cards can seem out of reach—but there are still solutions available. Whether you’re rebuilding your credit history or facing an urgent need for funds, understanding how credit card loans work for bad credit is a smart first step.
Representative 79.5% Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 3 months. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £570.44, an annual interest rate of 59.97% (fixed) Representative APR: 79.5% (variable).
This guide breaks down your options, risks, and smarter alternatives—so you can make informed borrowing decisions.
What Are Credit Card Loans?
When people talk about “credit card loans,” they usually mean one of three things:
- Standard card purchases – borrowing against a set credit limit.
- Cash advances – withdrawing cash from a credit card (usually with high fees).
- Balance transfers – moving debt from one card to another to reduce interest.
If you have poor credit, accessing these features can be difficult. Many high-street banks only offer cards to customers with good or excellent credit. That said, there are credit cards designed for bad credit—and they can be a useful tool when used correctly.
Can You Get a Credit Card with Bad Credit?
Yes. While options are more limited, credit-builder cards are available for those with low credit scores, missed payments, defaults, or County Court Judgments (CCJs).
These cards typically come with:
- Lower credit limits (usually £200–£1,200)
- Higher interest rates (APR often above 30%)
- No-frills features (few or no rewards)
But they also offer a chance to improve your credit file—by making payments on time and staying within your limit, you can show lenders you’re a responsible borrower.
Are Credit Card Loans Right for You
Before applying for any new credit product, it’s important to understand how it works—and whether it’s truly the right option.
Benefits:
- Instant access to funds for unexpected expenses
- Ability to spread costs if repaid monthly
- Opportunity to build or repair your credit history
Risks:
- High interest charges if balances aren’t paid off in full
- Late fees and missed payment markers
- Easy access to credit can lead to overspending or problem debt
If your financial situation is already stretched, a credit card might not be the best route.
Alternative Borrowing Options for Bad Credit
If you’re considering a credit card loan due to financial pressure, it’s worth looking at alternatives—especially if you’re likely to carry a balance or need cash quickly.
1. Short-Term Loans
Bad credit loans are available from FCA-authorised lenders, including direct lenders and brokers like DotDotLoans. These loans are often fixed-term with clear repayment schedules—so you always know where you stand.
2. Guarantor Loans
If you have a friend or family member with a better credit score, they can act as your guarantor. This gives lenders more confidence, allowing you access to better rates and higher amounts.
3. Secured Loans
If you’re a homeowner, a secured loan might be available to you—even with bad credit. The loan is backed by your property, which reduces the lender’s risk and can improve your chances of approval.
4. Credit Union Loans
Credit unions are community-based lenders offering lower-cost loans, even to those with poor credit. They may also provide budgeting help and financial advice.
Building Credit for the Future
If you’re trying to improve your credit score, a credit-builder card can help. Here’s how to use it wisely:
- Never miss a payment. Even one missed payment can harm your score.
- Stay under 30% of your credit limit. This shows lenders you’re not over-reliant on borrowing.
- Don’t apply for multiple cards at once. Each application leaves a mark on your credit file.
Over time, consistent, responsible use of a credit product will improve your rating—helping you access better deals down the line.
Final Thoughts
Credit card loans can be useful for those with bad credit—but they come with strings attached. High interest rates, strict limits, and potential fees mean they’re not always the best choice, especially if you’re already financially stretched.
Before applying, ask yourself:
- Can I repay the balance in full each month?
- Am I using this for essentials or non-essentials?
- Would a fixed-term loan or credit union loan be safer?
At DotDotLoans, we’re here to help you explore your options and choose what’s right for you. We work with responsible, FCA-authorised lenders who understand that a low credit score doesn’t tell the full story.
Explore our guides to learn more—or check your eligibility for a loan today without affecting your credit score.
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