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Payday Loans for Bad Credit

Payday loans for bad credit provide short term borrowing options for individuals with poor or limited credit histories (bad credit). These loans are designed to cover urgent expenses, offering quick access to funds when other borrowing options may be unavailable.

How much would you like to borrow?
Representative 79.5% Rates from 48.1% APR to 1721% APR. The minimum Loan Term is 3 months. The maximum Loan Term is 36 months. Representative Example: £1,000 borrowed for 18 months. Monthly Repayment of £89.22. The total amount repayable is £1605.96. Interest amounts to £570.44, an annual interest rate of 59.97% (fixed) Representative APR: 79.5% (variable).

People with bad credit could still get payday loans, as many lenders focus on affordability and current financial circumstances rather than solely relying on credit scores.

What Are Payday Loans for Bad Credit?

These loans are short-term and made for people who might not get approved by a bank because of their credit history. They’re often used to pay for things like emergency repairs or bills and are usually paid back on your next payday.

The good thing is that some lenders will look at more than just your credit score. They’ll also check if you can afford to repay the loan based on your current income.

How Do They Work?

Borrowers complete an online application, providing details about their income, expenses, and financial situation. Lenders assess this information to determine affordability. Upon approval, the funds are transferred directly to the borrower’s bank account, often within the same day.

Benefits of Payday Loans for Bad Credit

Accessibility

Payday loans are accessible to borrowers with poor credit histories, as lenders prioritise affordability over credit scores.

Quick Approval and Funding

Most payday loans offer fast approval processes, with funds available on the same day or within 24 hours of approval.

No Collateral Required

These loans are unsecured, meaning you don’t need to provide any assets as collateral to qualify.

Flexible Loan Amounts

Loan amounts typically range from £100 to £1,000, making them suitable for small, urgent expenses.

Things to Consider

Higher Interest Rates

Payday loans often come with higher interest rates compared to traditional loans. Ensure you understand the total repayment amount before borrowing.

Short Repayment Terms

Repayment periods are usually short and require careful budgeting to avoid missed payments or add-on fees.

Potential Credit Impact

While a lot lenders offer bad credit loans, missed repayments can negatively impact your credit score. Paying back loans on time can help rebuild your credit.

When to Use Payday Loans for Bad Credit

Payday loans are suitable for:

  • Covering unexpected medical or car repair bills
  • Managing short-term cash flow gaps
  • Handling urgent expenses when no other options are available

Frequently Asked Questions

Can I get a payday loan with a very low credit score?

Yes, many lenders offer payday loans to borrowers with low credit scores. They focus on your current ability to repay rather than just your credit history.

How much can I borrow with a payday loan?

Loan amounts typically range from £100 to £1,000, depending on the lender and your affordability assessment.

Will applying for a payday loan affect my credit score?

Lenders will perform a credit check during the application process, which can leave a mark on your credit report. Responsible repayment can help improve your credit over time.

Are payday loans for bad credit regulated in the UK?

Yes, all payday loan lenders in the UK must be authorised by the Financial Conduct Authority (FCA). This ensures they adhere to strict rules to protect borrowers.