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Specialist Loans[edit]

Specialist loans can finance almost anything, from a quick top up until payday to your next car. They're a good source of cash for those specific items that other loan companies might not finance. You will need to take your credit history into account, since any instances of bad credit, County Court Judgements (CCJs) or other problems like defaults on previous loans can make it hard to find a Specialist loan that doesn't have an inflated interest rate. Use this table to see all specialist loans in the UK.
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What is a specialist loan

Specialist loans are loans that can be used for any purpose, whether it be some extra cash until payday or the deposit for a new car you want to buy. They're a good source of cash for those other items that mainstream loan companies might not lend for.

Specialist loans usually have very high interest rates because the people they lend to are classed as high risk (more likely to default on loans). They focus their loans toward sub prime borrowers as it is common for specialist lenders to not do credit checks. These no credit check loans are available to people with bad credit, including county court judgements, defaults, arrears, etc.

Specialist loans do not generally fit the “unsecured, payday, credit union” categories of lending.

Missing a repayment or defaulting on a specialist loan will lead to worst-case scenarios. There are really high charges that can and will be applied to your account for late payments, defaults, arrears, etc. Debt collection companies will be involved rather quickly (they will charge you for that too). With logbook loans, they have the ability to repossess your car!

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Why is the APR so high

The APR is so high because the loans are targeted for people with bad credit who are unable to approach prime lenders. They take into account the risk factor of lending to sub prime customers.

The terms are really short so they increase the interest rate to make the most money they can from the loan. They also take into account the fact that a lot of their customers choose to settle their loans early.

Specialist lenders tend to be no credit check lenders, which increases the risk greatly. Also, the cost of maintaining their customer's accounts are higher (as they may need to contact them to recoup repayments or hire a debt collection company to chase the money), therefore the interest rates are higher to compensate for all of these factors.

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What types of loan classify as specialist

Logbook loans - typical examples of no credit check specialist lenders as they do not fit the general rules of lending. They require a specific document to secure your loan against.

Peer to peer loans - specialist lenders as they are a non-conventional way of borrowing money. You borrow money from other members of the public as opposed to the bank.

Online pawn broker loans - different from normal pawn brokers as they require you to send your items to them via post to be evaluated whereas you have to take your item to a store with normal pawn brokers.

Text loans - a new type of specialist lender. There are no other loans where all you need to do is send one text and money is transferred into your account.

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What are the general characteristics of a specialist loan

  • Usually lend to bad credit borrowers
  • High interest rates
  • Shorter loan terms
  • May ask you to provide something as collateral
  • Need to be 18 years of age or older to apply
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Who is eligible for specialist loans

  • Must be 18 years of age or older
  • They must be able to contact you on a valid phone number
  • You don't need to have a good credit history
  • You must be a UK resident

Example Loans:

Bigcarrots

10%APR

Mobile Quid

36894%APR

Borro

68.8%APR

V5 Loans

498%APR

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Loanpages.co.uk is a free to use comparison site. It's important to remember that the rates displayed on our website are representative. The actual APR will depend on the lender, the loan amount and the borrower's credit circumstances. Whilst we work with a number of lenders, we never let any money we get paid affect the information that's on our site.

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