When it comes to short term loans for bad credit, people tend to have lots of questions. Many believe that they won’t be eligible to borrow money because of their adverse credit, but this is not always the case.
If you have struggled to get a loan because of a poor credit rating in the past, we can help! Lots of UK direct lenders now offer small, short term loans for people with bad credit. These bad credit loans provide some peace of mind when those unexpected costs arise long before your next payday is in sight.
We aim to make funding accessible for everyone, regardless of credit history. So, even if you have a very bad credit score, our direct lenders will review your current financial situation and offer an instant decision! If approved, the cash could be in your account within a matter of hours.²
Bad credit is the term used to describe a poor credit rating or score. It is a negative assessment of your creditworthiness that is based on your borrowing history. A poor credit score occurs when you default on a credit agreement, such as missing or making multiple late payments. It will also negatively impact your credit rating if you repay less than the agreed amount each month.
A credit rating is used by traditional lenders to determine your risk profile and creditworthiness. If your credit score is poor, they will be reluctant to lend to you because they think you will be unable to repay a loan, regardless of whether your financial status has changed since you last used a credit facility.
Interestingly, if you have never applied for credit in the past, traditional lenders will also consider you to be a risk. Without a credit score, your lending behaviours cannot be assessed. When a lender assesses your creditworthiness, they are looking at how much financial risk you pose.
At This Lender, we understand financial emergencies can happen to anyone, regardless of their credit history. We don’t believe that anyone should be written off as a result of previous issues with credit. That is why our direct lenders can identify those individuals who, despite poor credit scores, can be relied upon to repay an agreed loan amount.
A short term loan for bad credit is finance offered over a short repayment period, usually under 12 months. These loans are tailored towards individuals with an adverse credit history, who may struggle to meet the normal criteria for borrowing.
Bad credit short term loans are designed for people who have a less than perfect credit score because of poor financial decisions made in the past. If you live in the UK, our direct lenders can offer you a small, unsecured loan regardless of your credit rating.
A bad credit short term loan is a small loan paid off with interest within a short repayment period. Sometimes, these loans are referred to as payday loans, which you are required to repay within a matter of weeks when you receive your next pay cheque. Other small loans for people with bad credit can be repaid within a few months, and some arrangements are offered with a full twelve-month repayment plan.
If you find yourself facing a financial emergency, getting the loan you need when you’re a little short on cash is probably your primary aim. However, it is worth knowing that securing a short-term loan and repaying it on time will improve your credit rating and make it easier to secure larger loan amounts in the future. Your credit history stays with you throughout your life, which is why positive outcomes such as timely payments can help to improve previous negative records.
As an unsecured financial agreement, you will not be asked to offer any assets to secure the loan amount. However, depending on the loan provider, a guarantor may be required, so you will need someone else to help you access the funds you need.
Even if you have experienced credit problems in the past, you could still be approved for a short-term, unsecured loan from one of our trusted UK direct lenders. At ThisLender we work with a panel of short-term bad credit loan lenders who are authorised and regulated by the Financial Conduct Authority.
We can help you get the best deal on the short term loan you need, even if you have a poor credit rating. Simply apply online now for a short term loan of up to £5,000, and one of our trusted short term loan lenders will provide an instant decision!
Available to anyone aged 18 or over, bad credit loans are typically provided over a short timeframe and are unsecured, which means you won’t be asked to offer any personal assets - such as your home - as security against the loan.
Direct lenders can approve your application within minutes. They will confirm the amount you are eligible to borrow, as well as the interest rates and charges that will be applied to your loan. You will then be required to repay the loan in regular monthly instalments within an agreed timeframe. Once agreed, the cash will be transferred to your account within a few hours².
Find a short term loan that’s right for you. Apply now for a short term loan, even if you have a really bad credit rating, from one of our trusted UK lenders.
Our direct lenders offer short term loans of up to £5,000 for people with bad credit. You will not require any assets to secure the loan. In most cases, a credit search will be carried out along with an assessment of your current financial situation and lifestyle, to determine your eligibility for a loan.
Lenders will take into account your credit history as well as your current financial situation and affordability; this is because they need to make sure you can afford to repay the loan.
As with most financial arrangements, the amount you can borrow will be calculated based on your income, outgoings and outstanding debts.
Our FCA-regulated UK direct lenders can tailor the best product to suit your individual needs. To find out how much you could borrow, simply complete the quick and easy online application now to get your free, no obligation loan quote.
If you need a quick injection of cash to last until your next payday, a short-term, unsecured personal loan could be just what you need, even if you have bad credit. You will get an instant decision without having to wait hours, and you won’t need to offer assets as security against the short-term loan. This is a fast, easy and flexible way to apply for finance with bad credit.
The benefits certainly outweigh the disadvantages, but you must be aware that the interest rates and charges applied to bad credit short-term loans are typically higher than other finance arrangements.
If you have a poor credit history, you will be deemed a greater risk than those with a spotless lending record. For this reason, a guarantor may be required to co-sign your application. If you haven’t come across this financial term before, a guarantor is a person (usually a friend or family member) who agrees to co-sign your credit agreement, promising to repay the loan in the event you default on repayments.
Further to this, when it comes to short term loans for bad credit, most lenders will only lend small sums of cash. While this can be frustrating, gaining approval for any form of credit will help you to steadily increase your credit score, making it easier to borrow larger amounts in the future. To summarise, the cons include:
Applicants over the age of 18 are welcome to apply for a short-term loan with bad credit. You must be a UK citizen and demonstrate your ability to repay the loan based on your current financial situation, i.e. your income can accommodate any outgoings, outstanding debt, and the repayment of the loan. To be eligible for bad credit short terms loans:
Unfortunately, short term loans for bad credit typically have higher interest rates than other loan products. This is because a bad credit score is perceived as higher risk in the eyes of the lender, so they need to charge more to agree to lend.
If you’re worried about how much your short term loan for bad credit will cost, and your ability to make repayments, you might want to consider applying at a later date. In the meantime, you can work on improving your credit score in other ways.
If you have bad credit, don’t panic, there are always ways to work towards improving your score over time. The first thing to realise is that your credit file is important, so taking time to work on it won’t be wasted. Find out more about improving your bad credit score.
Even if your credit score is less than desirable, that doesn’t mean you shouldn’t be able to access funds as and when you need. Luckily, there are options that you may like to consider for this type of lending:
Peer-to-peer loans, also referred to as P2P loans, are funded by an individual or a group of investors who want a return on their investment. These arrangements are much more flexible than those offered by traditional banks or building societies. Both parties benefit from the arrangement; you receive the funds you need while the investors receive interest on the amount loaned.
While guarantor loans do not require any assets to be offered as a way to secure a short-term loan, you will need someone, such as a family member or friend, to co-sign your application. They will be legally required to cover any outstanding repayments on the loan should you be unable to repay.
Apply now and get an instant decision on your short-term loan application. Remember, our loan matching service is completely free to use, and you are under no obligation.
A secured loan is obtained when you choose to put forward personal assets as security for the loan. These loans are often easier to obtain, because the collateral provided lowers the risk for the lender.
Whilst you may be able to receive lower interest rates with secured loan products, be advised that the risk you take on is far greater. If you default on payments, the lender reserves the right to seize your assets.
When finding the best short term loan for bad credit, it's important to compare lenders that are most suited to your needs. This can include the loan amount you need and how long you need the loan for.
It's essential to compare interest rates and APRs, as the lower the interest rate, the less you will pay. However, watch out for any hidden or additional fees and charges.
Before going ahead with your chosen lender, make sure they are FCA registered. You can check the online Financial Services Register if you are unsure.
Other factors that may be important to you may include good customer service, so be sure to read their reviews on sites like Trustpilot.
With so many lenders in the market, finding the best short-term loan for bad credit can be time-consuming. This is where ThisLender can help by matching you to the most suitable lender on our panel in minutes.
Applying for a bad credit short term loan couldn’t be easier with ThisLender. Understandably, many people with adverse credit feel nervous about applying for short term loans online. However, it shouldn’t be this way.
When you use our online application form, we will not perform a credit check. We will simply match your profile to the most suitable lenders for your situation. Then, further on in the application process, lenders will complete a soft search, which will not impact your credit score. Only after you accept a lender’s short-term loan offer will a hard check be performed.
Yes it is possible. However, in many cases, when you are looking for short term loans for bad credit with no guarantor, the reality is the lender may require a third party to act as a guarantor against the loan value.
If you are having financial difficulties or need to speak to someone regarding your financial situation before applying for a loan 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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