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Bad Credit Loans

Use your car to borrow money, even if you have a poor credit score.

Once you have been approved, the money could be paid into your bank account within 1 hour.

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CCJ’s& DefaultsOK


No earlysettlement fees; pay early pay less


No hidden charges; all costs clearly explained


Prompt credit decision; money within hours

We PROMISE that we will aim to beat any written quote from any other logbook lender

Warning: Late repayments can cause you serious money problems.

For help or advice please go to

Please take time to read and understand our FAQ's to ensure our logbook loan product is suitable for your requirements.

Varooma's logbook loan contracts start from 12 months to a maximum term of 36 months. You are entitled to settle your loan early and there are no penalties or charges to do so.

The maximum APR is 190.3% which includes all fees associated with your loan contract.

In the event there is no willingness to repay your loan, the vehicle you are using as security could be at risk of being repossessed and sold to assist in settling the debt.


Our Loans for Bad Credit Explained

If you have a poor credit score, a bad credit loan in the form of a logbook loan could be the ideal solution for you because we will accept past missed payments and CCJ’s as long as you can afford the loan. You just need to have a car and we may be able to lend you up to 70% of the trade value of it.

When you apply we will assess your application and give you an instant decision, which isn’t based just on your credit score. We look at the overall affordability of the loan for you, the value of your car and your credit rating too.

Our bad credit CCJ loans need no guarantor, so you don't need anyone else to co-sign the agreement and the loan is entirely confidential.

Having bad credit doesn't need to be a problem as long as you can afford the loan and the value of your car meets our requirements.

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How it works...

A logbook loan uses your car as security for the loan so it may have a lower interest rate than many other loans for bad credit available which are unsecured.

You need to own a car which has no finance against it and the logbook (V5) of the vehicle needs to be in your name. The car shouldn't be more than 10 years old unless it is a classic or prestige car.

We are a bad credit loans direct lender so your money comes straight from us and you won't need to deal with anyone else.

You can apply online or over phone and once you have been approved, one of our representatives in your area will come to meet you for you to sign the loan documents.

Once this has been completed, the money will be paid to you straight away.


What are Bad Credit Loans?

A bad credit loan is where a lender will offer a loan to a customer who has a credit record that is considered poorer than average. Normally most lenders will look at a potential borrowers credit score and will be able to assess if they will be able to offer a loan based on that information.

With a bad credit loan your credit record is also assessed, but a loan can still be offered to you even though your rating is low. The terms of a loan can be less favourable to you as a borrower with bad credit, due to the increased risk to the lender. However this isn't always the case, such as when security is used.

No lender will be able to offer guaranteed approval for bad credit loans in the UK because even though a poor credit score can be accepted they will still need to look at your individual circumstances.

What causes a poor credit rating?

Bad credit ratings happen for a variety of reasons. It might be that you have missed payments on loans, mortgages or credit cards, or because you have a County Court Judgement (CCJ). Any of these can affect your credit score and if there are repeated missed payments it will negatively affect your credit score further.

How to check your credit record

It is important to check your credit record to make sure that there are no mistakes and so you have an idea of what your credit score is. If you find errors, contact the provider involved and they will remove the mistake from your record. The 3 main UK credit rating agencies are Equifax, Callcredit and Experian. You can legally have access to your data for £2 from each of these agencies by asking them and they will provide a summary of your report in writing or online.

Bad Credit Loan interest rates

Something borrowers need to be aware of is that loans for people with bad credit will have higher interest rates than other types of loan. The lender will consider the borrower a higher risk and will often charge more.

Rather than being refused credit a lender may offer higher interest rates for the loan. This is something you need to be aware of and make a decision about whether the monthly payments are affordable for you, and if they will continue to be affordable should your financial position change. When you have a bad credit score it can be a relief when a lender offers you money, but in reality it might be that the interest rates make the loan unaffordable.

With some bad credit loans you may find that interest rates decrease with the amount of money that you borrow. This means that it can be tempting to borrow more than you actually need. It isn't advisable to do this as you will also have to pay back the extra amount you borrowed, together with the extra interest.

Care needs to be taken

If you have a poor credit rating, you will need to assess whether taking out another loan is right for you at this point in time. If you aren’t able to make the payments on this loan it will lower your score even further and make it much more difficult to borrow again.

Whilst in some cases it is true that you can repair your credit record by keeping up with your payments and building up a good history again, you need to be certain that you are able to do this.

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Responsible Lending

We assess all applications carefully and only offer loans to people we believe can afford to pay them back and never guarantee approval.

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Amount of Loan £1000.00. Repayable by 12 monthly repayments of £141.67 or 52 weekly repayments of £32.69
commencing 1 month from the date of the loan. Total Amount Repayable £1700.04.

Rate of Interest 70% per annum flat fixed. Representative 190.3% APR.

Warning: Late repayments can cause you serious money problems. For help or advice please go to