Loans for Bad Credit
Borrow from: £100 – £5,000
Lending periods: 1 – 36 months
Applying for bad credit loans with LoanBird is painless! Here’s how you go about it:
Representative APR: 279.5% | Representative Example: Loan Amount: £300 | Borrowed for 60 days | Total Repayment: £420.82 in 2 monthly installments of £210.41 | Interest Charged: £120.82, interest rate 120.8% pa (Variable).
Step One - Apply
Applying with us for bad credit loans only takes a few minutes. Start by selecting the amount you need and how long you want to repay it.
Step Two - Decision
When you’ve submitted your info, we’ll present the available deals for all our loans for bad credit. Simply choose your favourite.
Step Three - Cash
Once you’ve read and signed the agreement for your bad credit loans online, the cash could be in your account in just 10 minutes!
Bad Credit Loans for the UK
If you have a history of bad credit and found searching for the ideal loan online increasingly difficult due to this, loans for bad credit are the ideal solution. Whilst they can’t be guaranteed, this type of loan presents a higher chance of approval compared to a personal loan or other short or long term borrowing. As FCA authorised brokers, we can connect you to lenders who are in a position to help you.
You can easily connect with our FCA approved lending panel for bad credit finance through LoanBird. If you need your money today, use our application form to get bad credit loans online best suited to you, and if approved, you could have the cash in 24 hours.
Your Guide to Loans for Bad Credit
A payday loan product used to be an umbrella term which covered all different types of short-term lending. The lending world has now become more refined and offers many more options of short-term credit. In this guide, we cover some of the main questions asked about loans for bad credit and what LoanBird can do for you as a customer.
What Exactly Is Bad Credit Finance?
Bad credit finance refers to a form of short-term lending that is usually not provided by high-street banks and traditional lending institutions. Bad credit loans in the UK facilitate the payday lending model by including bad credit as part of the product profile.
Loans for bad credit are ideal for people who need a quick fix to some form of emergency funding. This can be anything from a car repair, an unexpected bill, to even medical expenditures. With very bad credit loans, you’ll be able to choose a repayment term that suits you, as most lenders can agree to longer periods.
What Is Bad Credit?
The term “bad credit” is normally formed when you default or miss any repayments to a lender or multiple lenders. If you have a track record of not paying any bills as agreed in a credit agreement, you will receive a bad credit title from the lender who you defaulted with.
Having bad credit will also mean you have a less than average credit score. In general, anything around 550 and under can be deemed a bad credit rating. Individuals facing this situation will unfortunately have fewer credit opportunities than those with good credit.
If you are looking to take out really bad credit loans or any form of credit, it’s important that you keep to your credit agreement schedule and the terms set out in your borrowing conditions. Where we can help match you with lenders of bad credit loans in the UK, you’ll need to ensure you can afford to make payments on time and sustain them.
Can Anyone Get Very Bad Credit Loans?
Not everyone with bad credit will be fortunate enough to get the finance they need. However, at LoanBird our service works differently to others, which is why we are often able to help customers with very bad credit loans online.
As we partner with so many loans for bad credit providers, you’re matched with the best options based on the information you provide us. This filters out any lenders that will categorically say no to you.
Our panel of lenders won’t agree to assist just anyone that needs one, as certain criteria need to be met. You can find the essential requirements to apply for loans for bad credit below.
Should I Apply for Very Bad Credit Loans?
Depending on your personal circumstances, very bad credit loans can be the ideal solution. Checking your credit score should be one of the first steps you take before applying for any online loan.
If you’re already aware of your credit status and you fall into the bad credit finance category, applying for small bad credit loans in the UK through regular lenders or banks can prove a difficult task.
If this is the case, finding a lender that deals with loans for bad credit would probably be your best option. Otherwise, we’d advise you to review your other credit options first. If you decide to go ahead, LoanBird is ready to help you for FREE.
How Do I Qualify for Bad Credit Loans in the UK?
There are many bad credit loans online lenders that you can qualify for, and we can help connect you to them. These lenders all have a range of requirements and diverse lending conditions, however, there are a particular set of eligibility criteria that each lender will require to be able to offer loans for bad credit:
Must Have a Bank Account
Many UK lenders will only lend to individuals that have a UK bank account. Having a bank account lets lenders deposit the cash somewhere it’s recorded in a safe and secure manner. This also provides confidence as they will be able to set up a direct debit or continuous payment authority (CPA) with you for repayments on very bad credit loans.
Need a Source of Income or a Job
Having a job or regular income determines whether your bad credit loans in the UK application is approved or not. There aren’t many trusted lenders who would offer loans for bad credit if you are not employed or do not have any proof you can afford it. Having a good history of employment is always a positive sign for loans for bad credit lenders.
Be of Legal Age and Be a UK Resident
To qualify, you will need to be of legal age (18+) and a resident of the United Kingdom. Your application will stop before it even begins if you can’t prove either.
Is Applying for Loans for Bad Credit Easy?
An application for bad credit loans online is straightforward and we’ve ensured our application form is as simple and convenient as possible to complete. You just need to ensure that you’re using the right channels to access them, something we as an FCA authorised broker can offer.
You’d think there are multiple ways through which you can apply, but there’s not. Most people prefer applying online and that’s where you can mainly source bad credit finance. Applying for a loan online is preferred because of its convenience, plus the ease of comparing multiple really bad credit loans/offers all from the comfort of your home.
Many people use their mobile device or tablet to browse online. This makes finding loans for bad credit much easier than ever before from wherever you are. Applying for a loan by visiting your local bank is a much longer process, and it may take around a week to get your loan approved. Unfortunately, many traditional lenders will not be able to help with loans for bad credit, but that’s where we differ.
Bad Credit Loans in the UK with a Direct Lender
Bad credit loans in the UK come in many different forms, so you should always check that the lender you choose is fully authorised to provide you with bad credit finance. Look at third-party customer reviews related to your lender also, as these will help you make an informed decision. When using our FREE service, you can trust that all lenders we connect you with are FCA approved.
It’s important that you use licensed lenders, as unlicensed lenders may end up charging you a high-interest rate or unnecessary fees. To prevent yourself from overpaying or receiving hidden charges, use a loan comparison so that you can accept the offer that works out best. This is something LoanBird can easily do for you.
Each bad credit finance offer you get should be under no obligation. This means you can choose to decline any loan offer if you want to, and simply walk away.
Most lenders are a specialist in this field, and you can easily find them online through LoanBird. Unlike conventional loan lenders, some lenders will often not need to perform strict credit checks straight away. The lenders’ focal point is your affordability as they’ll want to know you can repay the loan without any issue.
Below is an example of loans for bad credit lenders that can cater to both payday loans and bad credit applicants. We’ve arranged them by their APR and borrowing amounts:
All these lenders are officially authorised by the FCA to provide loans for bad credit. You can always check any lender’s licence of authority directly on the FCA register.
Loans for Bad Credit with a Credit Broker
You can easily find the services of a loans for bad credit broker, including our service here at LoanBird. Credit brokers are a quick and simple way to find multiple lenders of bad credit loans in the UK within a short amount of time. Credit brokers are there to work for you and to provide relevant options for what you require.
One of the most apparent advantages is that you’ll have a better chance of a suitable bad credit finance option. A broker will search all the best lenders with the lowest APR and highest acceptance rates against the information you provide. There are plenty of loans for bad credit brokers available online, with many websites offering really bad credit loans and other credit brokerage services.
Bad Credit Payday Loans – Frequently Asked Questions:
What credit score is needed for a payday loan?
The quick answer here is – you don’t actually need a specific credit score to qualify for a payday loan, each loan company can work differently to another. One main positive in this industry is that there are plenty of options to choose from. So, even with having a zero or low credit score there should be a lender available that is happy to let you borrow from them.
The thing is, you might actually have a low credit score as you’ve not been able to build on it as yet. Meaning, lenders will always look at other key factors (like affordability) as their main sense of security.
With that being said, this doesn’t mean you will definitely get a payday loan. As we advised above every lender is different, however, they all have to adhere to a responsible loan borrowing policy.
Are there any payday loans that don’t do credit checks?
Pretty much every payday loan lender will action a credit check when you apply with them. You might have heard of a soft credit check approach; this is as close as it gets to a no credit check process. Essentially, the loan company can act on a watered-down version of a hard credit check. Thus meaning, you can view your acceptance chances without a credit footprint.
There are brokers (like us) that have adopted this business model whom search through a panel of lenders for you, which can save you a lot of time.
What is the easiest loan to get with bad credit?
Obtaining a loan with bad credit can always be changeling, however there are lenders who specifically purvey these loans. The criteria of loan you would be most likely to get with bad credit might be that of a payday loan or that of a smaller value.
These loans typically start from around £100 – £5000 depending on the lender of course. It might well be a brisk application process but normally with bad credit comes a higher interest term. In addition, you should look at the figures in order to understand if it suits what you’re happy to repay.
Why did I get denied for a payday loan?
There are a number of grounds in particular that could warrant your payday loan to be denied. Commonly, the one at the top of list is that the loan company didn’t think you could afford the loan. Again, this could boil down to a range of reasons, so here’s a few things to be mindful of next time you apply:
- Check your application form for any mistakes
- Have a look at your credit score first
- You could have very bad credit
- Don’t apply for more than you can afford to repay
- Need to have a source of income
- Don’t apply if you already have a payday loan
- Need to be over 18
- Don’t apply with direct lenders one after the other
We would always suggest that you use tools that can advise on your approval or not before trying with a lender directly. Being rejected by a lender for a payday loan when you already have bad credit can once again impact your score negatively.
Who can I borrow money from with bad credit?
There’s a wide selection of lenders that will borrow money with bad credit, all offering different loan values and tenure terms. You can find these loan companies by searching for them directly, looking on comparison websites or even through a loan broker.
All these platforms will present you with an application form in order to fill out your request for a loan with bad credit. We give an example below of a few direct lenders that advertise for bad credit:
Representative APR & Loan Amounts
|CashASAP||1390% | £100 – £400|
|Wizzcash||1265% | £300 – £1000|
|Loanpig||1261% | £100 – £1500|
|Swift Money||91% | £50 – £1000|
|Drafty||89.7% | £50 – £3000|
|New Horizons||49.9% | £50 – £5000|
How do I get emergency money?
Emergency funds can sometimes be hard to come by, not everyone has a surplus of cash lying around just in case. You can quite easily get an emergency loan online, with many lending companies working with a same day funding business model. But what other options could you consider first? We’ve listed a few that you might not have thought of as yet:
- Ask for an increase on your credit card
- Request a wage advance from your employer
- If it’s a large amount – equity release
- Again, for a large amount – pension draw down
If you have studied all options and a quick loan is something you’re now contemplating, the process from start to finish is quite simple:
- Apply online from any device
- Wait around a minute for a decision
- Once accepted have a quick chat with the lender
- Sign your paperwork (they can usually do e sign)
- Get your funds in 24 hours, normally on the day
LoanBird actually deals with a large number of the UK’s direct lenders, giving you access to a multiple selection in under a minute.
How can I get instant loan online?
In general, there’s a few contributing factors to consider in order to get an instant loan online. You’ll definitely need to have a source of income, normally this would entail some sort of employment. Whether this is a part-time position or a full-time one, as long as you can display the affordability needed this is a great start to your application. The other key requirements are:
- Owning an active bank account
- Must reside in the UK
- Be 18 and over
Once you’ve ticked all these boxes you will then fall into the assessment stage, this will quickly check your ability to afford the loan. You will then get an instant decision from the lenders we work with.
Once you’ve picked your lender, they will crack on with a light credit check and call you discuss your loan and conclude your application.
Here’s an example showing how LoanBird could help you online with an instant loan:
What We Can Help With
What Are the Terms
|An instant decision||Complete our quick form|
|Short or long-term repayments||1 months – 36 months |
|A range of borrowing amounts||£100 – £5,000|
|Low APR||Will need good credit|
|Soft search only||Fill in our application|
|Bad credit||Afford repayments|
Why Choose LoanBird?
|Smart search technology|| |
|Large panel of lenders|| |
|More borrowing options|| |
|We aim to find the best APR|| |
|No impact on your credit|| |
|We deal with most UK lenders|| |
How can I get a loan fast with no credit check?
It’s always going to be difficult task to get a loan fast with no credit check. Reason being, loan companies have to follow some pretty strict guidelines to ensure they are lending safely.
In spite of that, there are companies (like LoanBird) that can give you immediate access to a swift loan service with only a soft credit search. So, in essence you can apply with confidence knowing your credit score is safe, also finding out what your options are with no obligation.
If a company tells you they can provide a loan fast without a credit check they are obviously not doing their job properly. In addition, we would always suggest you look into the loan company if they don’t fill you with confidence.
Where can I get an instant cash loan?
Instant cash loans come in many different forms and values, it’s all about searching in the right places. For instance, if you need to use some cash right now, applying for a credit card wouldn’t be a useful option for you. Credit cards can take up to anywhere between 7-10 days, and that’s actually business working days as well.
Another example you might struggle with getting your cash ASAP would be traditional high street banks. The process of getting to the bank, waiting around to see someone and filling in the loan application is a definitely not the most time efficient.
Online lending is where you need to be focusing your time. Credit brokers will work as fast as they can to get you an instant loan, most offering clever tech that does all this for you. LoanBird is one of these companies, our smart loan lenders search can give you an answer in seconds.
Can I get a loan with a 450 credit score?
With a 450 credit score you will definitely struggle to find a lender, however if you know where to look, you’ll have a better chance. Typically, with this credit score you will come under a bad credit profile. So, finding companies that advertise for bad credit would be where you need to focus your attention.
Another contributing element in lenders deciding if they will accept or not is your income. For example, if you apply for a smaller bad credit loan, your chances will be higher as it’s less of a risk to the loan company.
If you’re looking for a larger loan this might be a waste of time really. The only viable option would be that of a lender that deals with guarantor loans.
Can I get a loan with a 500 credit score?
A credit score of 500 is not the worst rating lenders have actually loaned money out to. You just need to make sure you are applying with the loan companies that are most likely to accept you. Bad credit or payday loans are usually the go-to as they generally tailor to lower amounts.
With a lower credit rating (unfortunately) comes a higher APR and interest rate. However, while you’re searching for the best option you can work out the interest to calculate what you can afford. To add to that, smaller loan amounts (even with a high APR) are obviously a lot more manageable financially.
Lastly, the Financial Conduct Authority put a price cap on payday loan companies. Therefore meaning, you shouldn’t pay over 0.8% of the total loan amount per day. Further caps include a maximal fee and any charges of 100%, plus missed payment fees are set at £15.
Can I get a small loan with no credit?
You will be able to get a small loan without a credit rating, you might have to expect a higher APR though. The reason for this is that lenders like to know who they are borrowing to. Having a credit report keeps a record of this, so it gives the lender something to work off.
If there’s no credit history to view, it’s difficult to gauge whether you are a responsible borrower or not. Nevertheless, once you’ve showed you can repay on time this will increase your credit score. Meaning, moving forward it will lower the APR and you’ll have more scope when you want to borrow again.
Another thing to consider is the loan amount you will be able to get. You might consider £5000 as a small loan. However, if this is the maximum value that lender provides, they might not feel confident lending to you with no credit history. If you have a guarantor worthy of that amount then this could definitely be an option worth exploring.
Can I get approved for a loan online?
Getting approved for a loan online might actually be a lot easier than you’d think. As long as you fit a very basic form of requirements set out by the lenders, you’ll have a really good chance of approval.
This criteria will mainly consist of having a residence in the UK, being over 18 and an income which will determine you can afford to repay the loan. A quick way to get a general idea if you can cover the monthly repayments might be to:
- Decide how many months you want the loan for
- Divide the total loan amount by that time period
- This will give you a rough monthly cost (without interest)
If you know the monthly calculated figure is achievable (with a surplus) this can give you a ballpark example of affordability before you apply online.
In addition to that, you could always utilise a loan service that operates on a soft search only. Meaning, you can essentially window shop with your options.
Can I get a payday loan with bad credit?
There is a good number of payday loan lenders that deal with bad credit in the UK. Most examples of smaller loans with higher interest have been arranged to assist individuals with a less than average credit score. Furthermore, every loan that is applied for is evaluated on each person’s circumstances. Meaning, approval can never be guaranteed.
A positive with applying online is that there’s plenty of payday loan options to choose from. This sure does beat walking around the high street, popping in every bank to make an inquiry. When applying online you should ask yourself some questions to reassure your decision:
- Is this payday loan company FCA regulated? (Never use an unregulated firm)
- Do they provide the loan amount I need?
- What APR will I be charged?
- Are they asking me to pay upfront for a loan? (If yes, avoid at all costs)
- Do they have a good review rating?
- Do they cater to bad credit?
- Can they do a light credit check first?
Some individuals can act on impulse and just apply with any sort of company without research. Taking that extra bit of time to assess could not only help your decision but make it a safer one.
Will my bad credit prevent me from being approved?
Having bad credit will ultimately thin out your chances of a loan approval. The key factor here is that your previous credit activity shows you’ve not kept to those repayment agreements. Subsequently to the loan company, this means you’re not the most perfect candidate to lend to.
Even though this is the case, lenders can look past this if you can show a decent example of affordability. Also, through a clever sense of management upon your application, you can actually use free websites to do a quick check on your chance of approval.
In conclusion to this, your bad credit report can obviously improve and benefit if you’re accepted for a loan. To achieve this, you’ll need to ensure that you are taking strict measures to always pay your monthly loan repayments.
Will my payday loan application be approved if I have bad credit?
When applying for a payday loan remember that this loan type is tailored to assist people with bad credit or low value credit ratings. Meaning, the lender will then look to focus on what you earn to make sure you can repay the loan. Furthermore, being approved is never a guarantee as every application is assessed individually.
Another point to remember is that there’s always other options available, even with bad credit. If you are approved, a low credit score is always something you can work on. Improve this and you’ll notice more loan companies offering to lend to you later down the line. Remember, the higher the credit rating the better the rates.
How quickly will my loan be paid out?
If you want your loan to be paid out quickly you need to ensure all your details are correct when you fill in your application. We would advise that you check over all your information at least once to avoid any errors or potential stalls in the loan process. Providing that all checks (identity etc.) are successful, you could actually get your loan as quick as on the same day you apply.
Here’s some common mistakes made on application forms resulting in a slower process:
- Selecting the wrong loan value (might not match affordability)
- Misplaced digits for sort codes and bank account numbers
- Incorrect date of birth
- Giving the wrong contact numbers (the lender will need to speak with you)
When the lender calls you, they will go through your information to check it themselves. However, the more amendments the advisor has to make the long you’ll be on the phone.
Does having a bad credit score mean I will be automatically declined?
A lot of people do get declined automatically with having a bad credit score. This could be down to a number of things, most of the time it’s because the lender you’re applying with probably doesn’t deal with bad credit. If you choose carefully, you’ll have a much better chance of being approved.
The ideal credit score for most of us will never really exist. Subsequently, lenders know this and if they didn’t cater to a bad credit category, they would be missing out on the option to profit from it.
Will my poor credit profile affect my loan?
Having a poor credit profile won’t always affect your loan application process, lenders will still deal with you. On the other hand, it really does depend on how poor your credit is, the worse it is the more limited your options are. The sub-prime lending industry is worth billions, so one thing to always note is that there will always be options, even with a very poor credit profile.
Below we list some examples of how poor credit could actually affect your loan:
- Higher interest rates
- Your APR is likely to be higher
- It could limit the loan amount you can apply for
- Certain lenders will never deal with you
Try to ensure you go over your finances prior to applying for the loan you want. If the lender thinks you can’t afford it, plus having poor credit, you’ve got no chance. Don’t damage your credit rating further by applying for something that just isn’t feasible.
Can I get loans for bad credit with no guarantor?
There are a number of payday and bad credit lenders offering loans with no guarantor needed. In general, the majority of loans all come under a no guarantor lending option. When applying with a loan company they will always prefer to deal with the person who wants the loan. We have noticed the term “no guarantor loans” has evolved into a product advertising to individuals with bad credit who can’t find a suitable guarantor.
In relation to that, if you do have a guarantor to use there are some major advantages to this loan type, such as:
- Your credit score doesn’t matter (the guarantors does)
- Very likely to get accepted (as long as the guarantor meets all requirements)
- Doesn’t impact your credit score
- You can apply for higher loan amounts (providing the guarantor has great credit)
If you’re looking for a bad credit loan without a guarantor, go through a step by step evaluation of what your options are before you commit to anything.
Does it matter how bad my credit is?
The judgment of how bad your credit is will depend on the payday lender you apply with. In addition to this, educate yourself on the loan companies that are most likely to lend you money. There are websites (like ours) where you can see what your options are in advance of applying with any lender directly.
Not everyone has a perfect relationship with creditors, many people don’t. A bad credit score doesn’t signify a closed-door policy with all companies. Financial hiccups can happen, and yes you may pay a higher-interest rate when lending but if it gives you what you need, say no more.
So, if you’re in a situation where you can only apply for a bad credit loan or credit card at least you have that option. You can increase your credibility by making all future repayments a paramount importance.
Does taking out a payday loan imply bad credit?
There are lots of people that take out a payday loan that have good credit, so no it doesn’t imply bad credit. Furthermore, taking out a payday loan can actually have the opposite impact. As long as you keep to your agreement and repay on time, it will leave a positive view in the lender’s eyes. Meaning consequently, your credit rating will receive a favorable boost.
The payday loan industry has altered quite a lot since the FCA enforced new rules and regulations. Gone are days of unachievable repayment amounts and ridiculous interest charges.