Bad Credit Payday Loans (UK) | Direct lenders | Quick Decision

What can we say about bad credit payday loans? Well, you’d apply for a payday loan as you normally would before it’s actually deemed a bad credit payday loan. This transition from one product type to another would solely rely on your credit history. With that being said, unfortunately not everyone will qualify for one.

You can easily utilise a substantial lending panel for bad credit payday loans with loanbird. Do you need your money today? Use our application form to get a loan best suited to you, if approved you could have the cash in 24 hours. 

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).
Warning: Late repayment can cause serious money problems. For help, visit moneyadviceservice.org.uk. Our site uses cookies to provide a better experience, see our cookies for more info.

Your Guide to Bad Credit Payday Loans

Previously payday loans use to be an umbrella term which covered all the different types of short-term lending. The lending world has now become more refined and offers a lot more options and subcategories of short-term credit. In this guide we cover some of the main questions asked about this loan option and what LoanBird can do for you as a customer. 

a pretty woman introducing what a bad credit payday loan is

What Exactly Is A Bad Credit Payday Loan?

Bad credit payday loans are a form of short-term lending, they’re usually inaccessible from banks and traditional lending institutions. These loans naturally facilitate the payday lending model by including bad credit as part of the product profile. 

Bad credit payday loans are ideal for people who need a quick fix to some form of emergency. This can be anything from a car repair to medical expenditures. You will be able to choose a term that suits you, as most lenders cater to longer periods. 

What Is Bad Credit?

Being bracketed as bad credit” is normally formed when the borrower of credit defaults or misses any payments to a lender or multiple lenders. Someone who has a track record of not paying any bills as they agreed to will receive a bad credit title from the lender they defaulted with.  

Bad credit will also mean a less than average credit score. In general, anything around 550 and under can be deemed a bad credit rating. Individuals facing bad credit will unfortunately have less credit opportunities than those with good credit. 

If you are looking to take out a payday loan with bad credit or any type of credit, it’s important you keep to your agreement and the terms set out in your borrowing conditions.  

someone applying on their mobile for a bad credit payday loan with loanbird

Can Anyone Get A Bad Credit Payday Loan?

Not everyone with bad credit will be fortunate enough to get the payday loan they need. However, our service works a bit differently to others, which is why we are often able to help customers with this loan type.

As we partner with so many loan providers, you’re matched with the best options based on the information you give us. This filters out any lenders that will categorically say no to you.

Our lenders won’t give out a loan to anyone that needs one, there’s a certain set of criteria that needs to be met. You can find the essential requirements below.

Should I Apply for A Bad Credit Loan Only?

Ultimately, this depends on your own personal circumstances. Checking your credit score should be one of the first steps you take before applying for a bad credit payday loan only.

If you’re already aware of your credit status and fall into the bad credit category, applying for a small loan with regular lenders or banks can prove a difficult task.

If this is the case a payday loan company that deals with bad credit would probably be your best option. Otherwise, we’d advise you study all the other credit options first.

many applicants can qualify for a small loan even with a bad credit rating

How Do I Qualify for A Bad Credit Payday Loan?

There are a number of online lenders that you can qualify for a bad credit payday loan with. These lenders all have a range of requirements and diverse lending conditions. However, there is a particular set of things that each lender will require:

Must Have A Bank Account

UK Lenders will only lend to individuals that have a UK bank account, it’s a must. Having a bank account lets lenders deposit the cash somewhere it’s recorded. Plus, this gives confidence as they will be able to set up a direct debit with you for repayments. 

Need a Source of Income or A Job

Having a job or regular income is a clear determinant to whether you’ll be able to have your loan approved or not. They’re hardly any lenders who would offer a loan if you don’t have a job or any sense of affordability. Having a good history of employment is always a positive sign for payday loan lenders. 

Be of Legal Age and Be A Resident

To qualify for a loan in the UK, you need to be of legal age (18+) and a resident of the United Kingdom.

someone filling in a loan application the tradition way

Is Applying for A Bad Credit Payday Loan Easy?

The application procedure for a bad credit payday loan is pretty straightforward, and these loans are easy to come by. You just need to assure that you’re using the right channels to access them.

You’d think there are multiple ways through which you can apply for a payday loan with bad credit, but there’s not. Most people prefer applying online anyway, and that’s where you can mainly source them. Applying for a loan online is preferred because of its convenience, plus the ease with comparing multiple loans/offers all from the comfort of your home. 

50% of online users are now using their mobiles to surf the net, making the world wide web so much more accessible. You can also apply for a loan by visiting your local bank. This process, however, can be considerably lengthier, and it may take around a week to get your loan approved. 

bad credit lenders discussing payday loan applications

Bad Credit Loans with A Direct Lender

Bad credit payday loans come in many different values and forms. You should always check that your lender is fully authorised to give you a loan. Also, look at third-party customer reviews related to your lender, you can then make an informed and accurate decision. 

It’s important that you use licensed lenders, unlicensed lenders may end up charging you a high-interest rate or unnecessary fees. To prevent yourself from paying for things you shouldn’t, carry out a loan comparison so you can accept the offer that works out best.  

Each loan offer you get should be under no obligation. So, you can choose to decline any loan offer if you want, and simply walk away. 

Most bad credit payday lenders are specialist in this field and you can easily find them online. Unlike conventional loan lenders, some online bad credit lenders will often not need to perform strict credit checks straight away. The lenders focal point is your affordability, they want to know you can repay the loan. 

Below is an example of some lenders that cater to payday loans and bad credit. We’ve arranged them by their APR and borrowing amounts: 

a list of direct lenders that deal with bad credit and short term loans

All these lenders are officially authorised by the FCA to provide payday loans. You can always check any lenders licence of authority directly on the FCA website.

an infographic showing how a bad credit payday loan works with a credit broker

Bad Credit Loans With A Credit Broker

You can easily find the services of a credit broker, there’s so many options these days. Credit brokers are a quick and simple way to find multiple bad credit loan lenders in 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 option. They tend to search all the best lenders with the lowest APR and highest acceptance rates. There are plenty of credit brokers available online, and many websites offering 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:

Lenders 

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 2 months – 10 years+ 

 

A range of borrowing amounts £100 – £25,000 
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?

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.

How Can LoanBird Help?

LoanBird has a committed group of payday lenders with many whom consider bad credit. They are all FCA regulated and work at a fast pace to get you the loan you need.

Upon your application process with LoanBird, your request will quickly be reviewed by all the lenders on our panel. This can signify a better chance of you being accepted for a loan as you’ve got more credit options assessing your loan request.

When you apply with LoanBird you won’t pay a penny to use our service, even with a poor credit rating. We will never ask for a fee for finding you a payday loan or not.

loanbird displaying a list of the advantages of bad credit payday loans

Advantages of Bad Credit Payday Loans

There are many reasons a bad credit payday loan might be an advantage to some borrowers. But what are the advantages of applying for one? Here’s a couple of reasons:

  • The delivery is normally fast, so they are Ideal for urgent needs. Usually it’s just a simple online form, you’ll need to include all relevant information, and you should be done. In most cases, the loan amount is dispensed in your account within 24 hours.
  • You can apply with no hard credit check. The reason you’re probably applying for a bad credit payday loan is that your credit score is below average. The last thing you would want to do is to decrease your credit score even further. Most providers just want to gauge your ability to pay back the loan within the agreed time period.
  • They can provide a high chance of being approved. It’s easier to get a payday loan than other borrowing types, as the lender is accommodating to bad credit you have to expect a higher-cost in return. You can also have more confidence due to it being a less value of money.
  • There’s also hardly any paperwork to deal with, so no need for digging out copies of bank statements and whatever else is required for other loan types.

a woman and man speaking over skpe about the pros and cons of a loan

What Are the Disadvantages of a Payday Loan for Bad Credit?

As much as a payday loan can help people, those applying with bad credit should be aware of what the disadvantages could be. Here are a few to consider:

  • As they’re a form of short-term credit you usually don’t have long time periods to pay back the full amount. This means you can’t spread the cost as much as you would with other types of borrowing.
  • Payday loans are supposed to be used when you’re in a financial crisis and other bad credit options aren’t available. Some applicants will use a payday loan to finance something unnecessary.
  • They can come with higher interest charges in comparison to other credit options. Being fully aware of what you are due to pay back is always a must.
  • You can only apply for these loans online. Some people prefer a face to face service, unfortunately this loan type doesn’t provide that.

Will Applying for A Bad Credit Loan Affect My Credit Rating?

Applying for a bad credit payday loan with LoanBird will not affect your credit rating at all. We conduct what’s called a “light search” which briefly scans the information you provide to present some lenders interested in your loan request. If you’re worried about a credit footprint this is a great option of checking whether you will be approved or not.

Once you choose the payday loan you want, that particular lender will carry out a more in-depth credit check, this is what can impact your rating. To add, if you’ve been creating numerous loan applications this is something that can negatively affect your credit score.

If your application is accepted by the lender it won’t damage your credit score, it will improve it.

loanbird exhibiting five alternative borrowing options to a payday loan with bad credit

Alternatives to Bad Credit Payday Loans?

There is a range of alternatives to bad credit payday loans, studying these options might be a good idea for your situation. Some of the main product types available are as follows:

Short Term Loans

Like payday loans, short term loans are ideal for customers looking for on-the-spot cash fixes. They also give you longer borrowing periods to the payday option. Typically, the loan can be deposited swiftly in your account, so you’ll have immediate access to the money.

People with bad credit scores often find it challenging to get approved for larger loans. Therefore, short term loans are an ideal alternative.

Secured Loans

This option requires you to use a specific asset as collateral for the loan you’re taking on. That collateral acts as a form of security and a guarantee when paying back the loan.

Secured loans are comparatively at a lower interest rate to other loan types. However, they carry a huge risk with them. If you’re unable to repay the loan amount, the collateral that you have deposited will be collected as payment.

Logbook Loans

Another example of a secured loan are logbook loans. They also require you supply vehicle assets as collateral before issuing a loan. The conditions of secured loans, however, are highly subjective and is significantly influenced by your current financial situation. We’d always suggest studying other options first.

Credit Cards

Credit cards are normally another contributing example of why you might have bad credit. However, they are a useful and convenient option to use in case of emergencies. Some companies do offer credit cards to people who have a bad credit score.

Owning multiple credit cards can actually help bring up your credit score (as long as you’re paying back what you owe). Also, there are introductory 0% interest rates which could help you pay off your short-term debt relatively quickly.

Guarantor Loans

This loan type has proven very popular for people with bad credit over the last few years. As you know the loan is essentially guaranteed by another individual. If you have an awful credit score and don’t want to pay the high interest, then this type of loan is a winner.

Usually with guarantor loans, it’s a friend or family member that guarantees the loan for you. They basically sign a contract that transfers the liability of paying back the loan to him/her. The transfer of responsibility essentially means that the guarantor will now be liable to pay back the loan if you’re unable to.

Summary: Bad Credit Payday Loans

To conclude, bad credit isn’t always the end of the road when it comes to borrowing. Like anything, there can be bumps in the road along the way but eventually you’ll get to your destination. The beauty of our smart search technology is that we have a collection of payday loan lenders that will entertain different levels of bad credit.

a woman advising on taking out a bad credit loan to cover a payday loan

Should I Take on A Loan to Pay Back My Current Loan?

As rule, taking another loan out to pay back your current one can be a bad idea. Unless you have multiple debts then consolidation could be an option worth entertaining.

Getting into a multi-debt system can cause your credit score to suffer. It could also place you in an endless credit loop that will become impossible to break out of in the future.

What’s the Solution?

Always talk to your lender first and explain your financial situation to them clearly. Mostly, lenders want to help, and they might be able to give you a solution that can help you be in control of your debt.

Lenders themselves will want their money back, so if you can come to some sort of an agreement it’s a proactive move for you and the lender.

Consolidation

Some people prefer consolidating all their debts, meaning they only have to pay back one loan instead of multiple.

Debt consolidation is a good option only if you’re seriously looking towards paying off all your debts as soon as possible. If you are looking to consolidate your debt, a larger personal loan might be able to cover the full cost of your debt.

There are many services online that offer free help to assist in getting you out of your debt situation.

Related Topics to Bad Credit Payday Loans

Bad credit payday loans direct lenders only

Applying for multiple bad credit payday loans with direct lenders only could hinder your approval chances elsewhere. It’s not always best practice to pick the first advert you see, be savvy and look around.

Another thing to note – not every payday lender will offer their service to assist with bad credit. If you do end up applying for a loan with a direct lender not knowing this it could really restrict your borrowing options. Reason being, once you’ve been rejected this shows on your credit status for other lenders to see.

Instant payday loans bad credit

Unfortunately, not all customers will be as lucky as others, instant payday loans for bad credit are few and far between. Usually the process will take a little longer than that of a person who has a decent credit rating.

However, numerous companies out there can supply whats called an “instant decision”. You can basically find out if you’ll be likely to get the loan you’re applying for. LoanBird can act on a instant decision process for anyone whom visits the website. Just fill in our application form and let us do the rest.

Guaranteed payday loans for bad credit direct lenders

Has a direct lender guaranteed you a payday loan for bad credit but then you never got the money? Yes, well, this can happen a lot actually, so you need to be vigilant. Anyone contacting you with this proposal is most likely a scam artist, stay well away and never pay upfront for a loan!

The lending market is under strict regulation by the Financial Conduct Authority. Loan companies have to follow this regulated structure in order to adhere to a responsible conduct of lending money. If you ever have any sense of apprehension head to their website or call them.

Emergency payday loan bad credit

Emergency payday loans aren’t just available for good credit score holders, they apply to bad credit as well. At LoanBird we understand emergency loans need to be quick! Whatever your credit history, we cater to deliver a service with speed for all visiting customers.

Unwanted bills can surprise us at any time, and when they do they always seem to come at a really inconvenient time. Unfortunately, not everyone has a piggy bank full of spare cash, however this where an emergency payday loan could be useful. With a fast application and payout process you could easily attend to that bill before the deadline.

Very bad credit loans direct lenders

We get asked a lot – Do you have direct lenders that deal with very bad credit loans? Yes, we do, but as we always say every loan request is different to the other. Not everyone’s circumstances are the same, one person might get approved with a very bad credit history, yet another might get a rejected.

When applying for a loan with very bad credit you’ve got to expect that your options will be limited. The best thing we can advise is to be smart with the way you apply. At the end of the day, you want to improve your credit score not make it worse off.

If you’ve tried all available options the only loan type we could suggest would be a guarantor loan.

Payday loans bad credit no guarantor

Payday loans with bad credit are normally applied for with no guarantor. A lender will only ask if you can provide a guarantor if they don’t think you can afford the loan you desire. It’s always best to see if you can get a loan without a guarantor anyway as this can be tricky due to the potential repercussions.

Most of the UK payday lenders only deal with no guarantor payday loans. One of the main advantages of getting accepted for a bad credit loan without a guarantor is the impact it has on your credit score. If you can keep the lender happy by completing all payments on time this will work in your favour.

Very bad credit loans direct lenders UK

There’s probably a handful of direct lenders in the UK that will take on very bad credit loans. You’ve got to expect a much higher interest and APR rate if you fall under this category as your deemed high risk. Research is key when you’re restricted with loan lenders to apply with.

Try comparison websites or loan brokers before you put an application in with a direct lender. The majority of these examples all offer you the chance to peep through the lenders door before you go in. Also, doing this wont push your credit score down any further.

If your credit score is pretty much none-existent the guarantor route is probably the only option with a lender.

 

£100 loans for bad credit

Our lending amounts start from £100 for bad credit loans, continuing all the way up to £25,000. £100 loans are very popular, thousands of bad credit applicants request this loan amount every day. Lenders are more likely to lend £100 to people with bad credit as it’s less of a risk with smaller amounts of money.

Applying for this amount of money will be deemed as a payday loan or short term loan. You will be expected to pay this loan back at a much earlier time than that of a loan valued in the thousands.

Other Helpful Tips On Bad Credit and Payday Loans:

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).

Our website is completely free for you to use, but we may receive a commission or fee from some of the companies we feature or introduce you too.

Loanbird.co.uk is a registered Trading Name of RJW Assist LTD. RJW Assist LTD is registered in England and Wales (Company number: 09470548). Registered Address: Brook House, 40 Cuthbert Road, Stockport, Manchester, SK8 2DT. Licenced by the Information Commissioners Office: registration number: ZA436430. RJW Assist LTD is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under the reference number: 788094. We are a licenced credit broker, not a lender. Loanbird.co.uk does not provide any loan or consumer credit products directly.

Timescales on receiving your funds may vary from lender to lender and depends if your bank accepts faster payments. The loan amount and interest rate offered is subject to the lender’s requirements and approval.

Warning: Late repayment can cause serious money problems. For help, visit moneyadviceservice.org.uk