What are Small Loans?
With monthly utility bills and living expenses biting hard at your monthly income, obtaining a loan may be your easiest way to get out of emergencies. But with a credit score less than 579? Your options are quite limited. PaydayLoansUK will link you with lenders who will fund you though, even if your credit profile is less than perfect.
Can I be Approved for a Small Loan If I Have Poor Credit?
Yes, you can. Unlike with the bank, we do not throw out your application simply because your credit profile isn’t attractive. Our lenders consider a lot more than your credit score in their assessments.
They believe that anything could have contributed to hurting your credit score, including multiple hard checks from different lenders. A missed payment or paying a debt late may also be responsible for your credit dropping by a few points. Instead, they pay more attention to your bearing the cost of the loan and provide you with just enough quick cash to sort out your financial commitments immediately.
What Kind of Small Loans for Bad Credit Are Available in the UK
Payday loans are small unsecured loans lent out subject to some conditions and meant to be repaid by the borrower’s next paycheck.
An instalment loan for bad credit is a lump sum of money borrowed at once and repaid in small, fixed amounts over the loan term or repayment window. These small, fixed amounts are referred to as instalments.
A title loan is a type of secured loan where borrowers can turn in their car title as collateral in exchange for a hundred to a few thousand pounds in loan.
Small Personal Loans
Small personal loans are loans obtained by borrowers who need cash for personal expenses like home improvement, learning new skills, and everything in between.
Tips for Getting a Small Loan with Bad Credit
While landing a loan with bad credit is considered tough, there are many ways to still increase your chances of getting approval nine times out of ten.
Examine your credit report
What does your credit score place you in? Before applying for a loan, check your credit score using free sources online to gauge your chances of getting a loan. You are entitled to a free credit report every year from any of the major credit bureau companies - TransUnion, Equifax, and Experian. You can take advantage of this.
Search for bad credit lenders
Bad credit loan lenders are lenders who specifically cater to the credit needs of people with less-than-stellar credit scores. If you have difficulty locating bad credit lenders with fair interest rates, using a loan broker will do you some good. PaydayLoansUK for instance will link you up with reliable lenders whose interest rates are comparatively low.
Apply with a cosigner
With a cosigner, you increase your chances of getting approved and unlock lower interest rates and higher loan amounts. A family friend or relative who has a fair or good credit score (above 579) can be your cosigner. However, bear in mind that they would be held responsible if you fail to pay back in time.
How to Apply for Small Loans for Bad Credit?
The highlights of our application process remain easy and convenient. Here’s how to apply:
Step 1: Fill out the simple online form that comes up when you begin the application process in our website. Enter basic information about yourself including name, date of birth, permanent address, employment status, overall income, and social security number. To confirm your status as a UK citizen, you may be required to share copies of a government-issued ID.
Step 2: We will connect you with a list of willing lenders who will run affordability and credit checks on you (as required by the UK Financial Conduct Authority). Not to worry, these checks won’t be run by the main credit bureaus and so won’t hurt your credit score.
Step 3: The lenders send you a quote containing the conditions of the loan and the approved loan amount once they deem you qualified for a loan. You will also be funded in a few hours.
Want to Get a Loan?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
Benefits of Getting a Small Loan Online from PaydayLoansUK
Efficient borrowing process
We make the process easy and convenient for you. All you have to do is fill the form accurately and we take it up from there. You’d get an instant decision and if approved, get funded within an hour or two depending on your bank’s processing speed.
Higher loan amounts
With bad credit, your lending options are limited and so is your credit ceiling. Good news! You’ve found us! Our lenders can get you up to £5k even if you have poor credit.
Reasonable terms & rates
Since small loans for bad credit are mostly unsecured, many lenders charge high-interest rates to offset their risks. We beg to be different. Our lenders charge fair and competitive interest rates. No hidden fees. No origination fees. You get exactly what you are approved for.
How Does Payday Loans UK Compare?
|Why Use Us?|
|What is the maximum amount I can borrow?||Up to £5000||Instant approval|
|Will I be considered if I have bad credit?||Yes||Bad Credit Considered|
|Interest rates (variable)||49.7%||Zero paperwork|
|Loan repayment terms||1-36 months||Flexible repayment|
|Will I be credit checked?||Yes||Will perform credit checks as for financial regulations|
|How do I apply?||Apply online||Simple application form|
How do small loans for bad credit work?
The application process begins with completing a simple online form. On submission, the form is sent out to prospective lenders who’ll make a funding decision soon after running affordability checks on you. Sign the quote sent to you thereafter and you will be funded soon.
How fast can I get my small loan?
Our partner lenders treat your loan request like an emergency and so, fund you quickly. For instance, you should get a funding decision in a couple of minutes from when you submit the form and get funded within an hour or two.
Can I get a small loan with a low APR?
Yes, you can. Although APRs on small loans for bad credit are usually high, you can get comparatively lower ones with a broker like PaydayLoansUK. We give you access to multiple lenders. You may then compare their offers to determine whose APR is the lowest.
How can I use payday loans if I have bad credit?
Small loans for bad credit are a great option to explore when you need to sort out some bills in between paydays, handle financial emergencies, settle emergency medical bills or get out of a messy situation. With our lenders, you are guaranteed fair interest rates and zero hidden fees.
How do I raise my credit score from 550 to 700?
The best way is to pay off all existing debts. Other ways are consolidating debts, leaving old accounts open, opening a line of credit at your bank, opening new account types, identifying errors on your credit report, and disputing them.
How much can I get?
Our partner lenders can get you up to £5k in loans. However, this credit ceiling isn’t constant. The specific maximum you can get depends on the assessment of your spending history and income portfolio.