Are you facing a financial emergency and struggling to get a loan because of poor credit history? Are you worried about your chances of being approved for a payday loan with bad credit? Luckily, despite the financial mistakes you might have made in the past, our authorised and regulated UK lenders provide payday loans for bad credit scorers, giving you a quick cash boost when you need it most.
A payday loan for bad credit is an instant, short-term and unsecured loan designed to provide small amounts of cash for people with low credit scores. Bad credit is a term used to describe a person’s inability to manage borrowings in the past; essentially reflecting the fact they have defaulted on a credit agreement either by missing payments, paying less than they should or receiving county court judgements (CCJ).
If, in the past, you have defaulted on a financial arrangement, such as a personal loan, credit card or utility bill, it is likely that your credit score will be poor. However, even if you have an adverse credit rating and some lenders see you as a risk, there are lenders who will help you secure a payday loan with bad credit.
When a financial emergency arises that won’t wait until payday – for example, your boiler has broken, your car needs new tyres, or you have received an unexpected bill - your options may be limited, but there are a number of direct lenders who are willing to offer you a bad credit payday loan.
Believe it or not, payday loans for bad credit are extremely popular in the UK. If you need to borrow money, you shouldn’t be penalised or restricted by past financial mistakes. There are lots of payday loans for bad credit out there, and we can help you secure one in a matter of hours.
Get your free, no-obligation quote from a direct lender today and find out how much you could borrow.
A payday loan for bad credit is a type of short term borrowing that helps customers with adverse credit secure funding. Designed to bridge the gap between paydays, these bad credit loans are used to cover financial emergencies. These loans enable people with bad credit to borrow money, but are typically associated with higher cost interest rates.
Have you found yourself in an impossible financial position? You need cash quickly, and while you are in a position to repay a short term loan, most traditional lenders see you as a risk because your credit rating is less than perfect and reflects your mismanagement of previous borrowings.
Now, despite having the means to repay a loan, you find yourself in a difficult spot where lenders won’t provide any finance, therefore preventing you from improving your credit score. What’s more, each time you are declined for a loan, your credit rating deteriorates further, making you an even greater risk to future lenders.
The good news is, you’re not entirely out of options. An adverse credit rating might put off banks and building societies, but there is a growing number of FCA authorised and regulated lenders in the UK who are willing to offer affordable payday loans for bad credit. These are available to people who, despite having a really bad credit rating, are now in a position to repay small amounts of cash advances within a short timeframe. Typically, borrowers are offered a one-off, emergency transactions in the form of a payday loan for bad credit.
Improving your credit score will enhance your chances of getting a loan. Did you know you can check your credit report and learn how to improve your credit score for free at Credit Karma (formerly known as Noddle).
When processing applications, the first thing lenders will carry out is a credit check. If you are declined, this is reflected in your credit score, and the more you are declined, the worse your rating becomes.
However, for many lenders, a credit rating fails to provide a completely accurate picture of a person’s ability to repay a loan. Some UK lenders will consider other factors; they will review your financial behaviour and the extent of your credit history. It is worth checking you are registered on the electoral roll, as this data helps lenders confirm your name and address. A lender may also allow you to have a guarantor in place to repay your outstanding loan if you fail to do so.
We work with a select group of payday loan direct lenders who are more likely to lend to people with poor credit scores, even if they have really bad credit ratings. When you apply online for a payday loan with bad credit, we will present your application to these lenders and whilst we cannot provide a no-credit-check guarantee, you do stand a better chance of being approved, so your credit rating should not be impacted.
These lenders have provided payday loans for bad credit to UK customers in the past, and are therefore in the best position to analyse the full scope of your financial situation before determining eligibility.
For lenders, there is greater risk involved in this type of finance. This is why interest rates for bad credit payday loans are typically higher, so it is important you take the time to carefully consider whether this type of finance is right for you, based on your current situation.
Whilst there are no constraints on how you use the funds, payday loans are designed for emergencies, and you should be sure that you can repay your loan in full and on time, as per the financial agreement.
With a bad credit payday loan, you could get an instant approval for up to £5,000†. You will not require assets, but a guarantor may be required to secure the payday loan. The amount you can borrow is based on affordability, for example, your current outgoings and the amount of any outstanding debts you have are taken into account.
We only work with lenders who are authorised and regulated by the Financial Conduct Authority (FCA). This means they comply with strict regulatory rules and adhere to responsible lending practices.
Payday loans tend to get a bad rap, which is why you should always apply through a broker or direct lender that is approved by the FCA and listed on the Financial Services Register. When you’re in an emergency situation and need a payday loan bad credit, you must be sure to apply through a trustworthy source.
Applications for bad credit payday loans are easy, short, and you won’t need a guarantor or any assets to secure the finance. Once your application has been approved, you will gain instant access to your funds, as they are usually allocated to your account on the same day. This is because these advances are offered in an emergency, and lenders understand you need a fast cash boost. The benefits of getting a payday loan with bad credit include:
Whilst receiving the cash you need quickly when you have a poor credit rating is an obvious advantage - up to £5,000† could be in your account on the same day of your online application - being given the opportunity to improve your credit score is highly beneficial.
Primarily, if you can pay back your loan within the repayment terms, you will demonstrate your ability to manage your finances effectively, and this could be reflected in your credit rating, making you less of a risk to lenders and enabling you to access further credit in the future. Working to improve your bad credit score is important, and responsible borrowing can be one way of doing this.
Rather than having to pay the loan over a longer repayment term, you are required to settle the debt within a short but flexible time frame. Lenders will offer small amounts of finance, which keeps down the cost of borrowing.
The fees and interest rates on bad credit payday loans are typically higher than other forms of lending. Whilst price caps are now in place to protect consumers, this type of lending is still considered to be an expensive form of finance. However, we will work hard to get the best possible deal for you from one of our direct lenders when you apply for your payday loan.
As a payday loan agreement, the terms of the arrangement are short, so you must ensure you are in a position to settle any outstanding debt within the agreed time period. Unlike other loan products, with payday loans for bad credit you will have a set, short amount of time to make repayments, until the payday loan is repaid in full.
To qualify for a payday loan with bad credit, you must be 18 years old, a UK citizen and have a stable income. These loans are usually offered to people with a poor credit score; if your credit rating is good, we recommend you take a look at less expensive loan options.
If you need a payday loan and you live in the UK with bad credit, it’s likely you will be eligible. Each lender has their own criteria, but generally speaking you must be:
Whilst there aren’t any restrictions on how you use the cash, the funds are typically provided to cover a genuine emergency. It is not advisable to apply for this type of finance unless you absolutely need to do so, as any failure to meet the terms of the arrangement could damage your credit rating further.
People typically use short-term bad credit payday loans to cover unexpected bills, such as:
If you do not qualify for a bad credit loan, a number of alternatives exist that may better suit your situation. These include guarantor loans and peer-to-peer loans.
A guarantor loan is a form of unsecured finance that requires a third-party individual to meet any repayments should the borrower fail to do so. Often, people with poor credit scores will access guarantor loans. The borrower is not required to offer any additional assets as security against the loan, as the guarantor agrees to repay any outstanding debt on your behalf if you are unable to meet the terms of the arrangement.
Peer-to-peer lending, also known as peer to peer (P2P) lending, offers another accessible way to access finance. Rather than banks, building societies or other financial institutions, individuals and groups of investors are responsible for lending the money. This often means the terms of the loan are more flexible. Whilst the lender gets the funding they need, investors receive a return on the amount borrowed.
If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a payday loan with bad credit you can get free and confidential advice from MoneyHelper (formerly The Money Advice Service), National Debtline or debt charity StepChange.
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Representative 97% APR (fixed)
Representative example: Borrow £1000 for 24 months at 24 equal instalments of £77.48. Total amount to repay £1,859.52. Interest £859.52. Annual interest rate 70% (fixed). APR rates range from 45.3% APR. to 1575% Max APR. Your APR rate will be based on your circumstances.
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