Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.

How to Get a Payday Loan with Bad Credit

If approved, your loan can be sent to you within minutes*

With over 50 direct lenders in our network to compare, we aim to find you the best loan offer available.

  • 100% secure
  • No fees
  • No paperwork

I would like to borrow...

When you search for a loan with us, a soft search will be carried out on your credit file to match you with the most suitable offer. All lenders on our panel are authorised by the FCA and will conduct a hard credit check if you proceed to take out a loan with them.

Representative Example: £400 loan repayable over 39 weeks at £18.96 per week, Rate of interest 113.46% p.a fixed; Representative 498.78% APR, Total amount payable is £739.44.

We're a fully regulated and authorised credit broker and not a lender.

We work with over 50 lenders to help you find the best loan possible.
We never charge you for our service.

If you have poor credit history and need a loan, then your options may be limited. However, you can get a payday loan with bad credit. Unlike with regular loans, the requirements for loans for bad credits are based on your income and not your credit history.

This article will show you how to get a payday loan with a bad credit. But first, what is bad credit?

What Does Bad Credit Mean?

Bad credit describes a person with a poor financial history. It’s a powerful number that can be used to assess a person’s borrowing power, that is, how much money they can reasonably pay back. Individuals who have high credit scores may find it easier to access loans and other financial services.

Typically, your credit score can go bad due to missed repayments, bankruptcy, or unfavorable county court judgments. Poor credit score can also be a result of not having any borrowing history.

What Are Bad Credit Loans?

Bad credit loans are also known as a cash advance. These are loans where lenders consider the borrower’s affordability of the loan and personal circumstance in place of the regular credit check.

Payday loans bad credit are typically designed for employees and people with a verifiable income source. The amount you get depends on the lenders’ assessment and your income to debt ratio. If you have other loans or mortgage liabilities, then you will get a lesser amount.

A bad credit payday loan usually comes with high-interest rates. Lenders may also charge hefty late fees if you fail to pay back your loans on time.

Why can't I get approved for a loan?

If you're struggling to with approval, chances are that you are applying for the wrong types of loans. Not all credit is created equal. Approval depends on many factors. Personal loans and larger instalment loans (for thousands of pounds) are way harder to land, then payday ones, for instance.

Also, there can be major differences between regular payday loans and payday loans specifically for bad credit. If you have no or very poor credit, you should definitely aim for a bad credit loan. Even lenders who offer these, however, might decline you, if you are not completely honest on your application. Remember, lenders need to check your identity, check that the details you provide can be trusted. So for instance, if you put in a wrong address or any fake details, they will find out and immediately decline your request. Even if your circumstances are not shiny, just be truthful. You'll have better chances this way.

Of course, this is not to say that will guarantee your approval. You might struggle with getting accepted for a loan if it becomes clear for the lender that you wouldn't be able to make repayments. If your financial commitments (other loans, mortgage, etc.) and outgoings are higher than your income, it's very likely that lenders will decline your request. But, this is for the best, as taking on another loan would just push you into further debt.

Anyhow, your best bet is to use a broker like Loanza - we work with multiple lenders who offer high acceptance payday loans for bad credit. Fill out our form accurately, and let us do the work for you. We'll aim to connect you with a lender who'll most likely accept your request.

Need a payday loan with bad credit?

We can connect you to a lender in minutes, regardless of your credit score.

Apply Now

What Are The Requirements For Payday Loans?

To be eligible for a payday loan for bad credit, you have to be a resident of the United Kingdom and must be over 18 years old when applying.

Applicants are also expected to be earning money from a paying job or business - can be employed or self-employed, but a regular stream of money is key to get any type of credit, including payday loans.

How Can You Get a Payday Loan?

Here’s how to get payday loans for bad credit.

1. Apply. Head over to the website or office of the payday loan direct lender or broker and fill out the application. Provide all necessary information accurately - these will include your personal details, financial details, loan term, amount, and purpose.

2. Wait. You may have to wait for a few minutes while the lender verifies your details.

3. Get your money to your bank account. Once confirmed and approved, you will be contacted and sent the loan amount.

You can apply through a loan broker or use a direct lender. Loan brokers, such as Loanza, search through their database for lenders likely to accept you, meaning only one credit check footprint. This is an advantage in case your application is rejected by multiple direct lenders, since it won't affect your credit score. If you have poor credit, it's better to go through a broker to avoid further damage to your score.

Advantages of Payday Loans

  • It’s easy to request
  • There is a higher chance of approval compared to conventional loans
  • It’s confidential and secured
  • No credit check
  • Quick turnaround
  • Applications can be completed online
  • Minimal or no paperwork required

What You Should Watch Out For

Bad credit payday loans usually come with higher interest rates. You should get quotes from various lenders and choose one with lower rates.

Payday loans are short terms loans. Some lenders offer a five day repayment period. It’s essential to borrow the amount of money what you can afford to pay back. Keep an eye on monthly repayment details even when the amount you borrow is seemingly small.

Always check the lender or broker's site well, and look for messages in the footer that tell you you can trust them. This line should be what you look for: "authorised and regulated by the financial conduct authority". Remember, all compliant companies will be approved by the financial conduct authority, and you can check this on the fca website. A trustworthy lender or broker will also display a "representative example" of the payday loans they offer.

Things to Keep in Mind When Applying for a Bad Credit Payday Loan

As mentioned earlier, bad credit loans typically cost more than regular loans.

Lenders usually check your credit score; but don't worry about your poor credit - they don’t use it as a consideration for assessing your loan application. They prioritise affordability instead, so people with bad credit have also somewhere to turn.

Choosing a lengthy loan repayment term will mean spending more in interest rates. Use loan calculators to understand how much money you will be paying monthly and in total and the end of the loans term. Make sure your monthly repayments are reasonable and won't end up spiralling you into further debt.

You may be charged penalties if you fail to make repayments as scheduled. You should always contact the lender anytime you will make a late payment.

Most lenders may also charge fees if you decide to repay your loans earlier than scheduled.

Need a payday loan with bad credit?

We can connect you to a lender in minutes, regardless of your credit score.

Apply Now

Will Applying for a Bad Credit Loan Affect My Rating?

Yes, it will. Typically, excess credit checks lower your credit score. When you apply for a loan (bad credit payday loans included), the lender usually checks your credit score. And in doing so, it leaves a footprint on your credit profile.

When multiple credit checks are made in quick succession, it leaves multiple footprints that indicate to lenders that you are unable to manage your money properly.

To avoid such situations, it’s advisable to always wait at least 14 days between credit and loan applications.

Do I Need a Guarantor for a Bad Credit Loan?

It depends. Bad credit loans don’t usually require a guarantor. With a regular loan, the lender is more concerned about your credit history. When you apply for a bad credit loan, they look at your income and debt ratio.

However, if both your income and credit history are unsatisfactory, a lender might ask for a guarantor since a payday loan is unsecured. The guarantor will be required to have a high credit score and sufficient assets to cover the loan.

If you can’t get a guarantor, you can opt for a secured credit loan instead. A secured loan requires having collateral, usually a property.

Will My Poor Credit Rating Affect My Chances of Getting a Payday Loan?

Typically you wouldn’t be able to access loan facilities if your credit score is below a specific range set by various lenders. But since lenders consider income instead of credit history for payday loans on bad credit, your score will have minimal effect.

Loans for bad credit, however, come at higher interest rates, and you may be required to present collateral or provide a guarantor.

Your application may, however, be declined if the lender feels you cannot afford to pay back the loan.

Is it hard to get a payday loan with bad credit score?

It's not. Your approval chances are of course lower than for those with better credit, but that won't get in your way of borrowing the money you need. Loanza's application process was designed to be easy and fast. All you need to do is click one of the "Apply Now" buttons on this page, fill out our super simple form, wait while we scan all the loan offers available to you, and get connected to a lender within minutes. If approved, your money could be deposited into your account the same day!

Through Loanza, you can borrow money with an almost instant decision from lenders even with bad credit history.

How much money can I borrow?

With Loanza, you can apply for £100-£5,000. We strongly advise you not to borrow more money than you absolutely need.

Need a payday loan with bad credit?

We can connect you to a lender in minutes, regardless of your credit score.

Apply Now