A few years ago, lousy credit signalled banks and financial institutions to stay away from you. However, that’s not the case today. You can get bad credit payday loans as long as you prove you can repay.
Indeed, no one has ever wished to have a poor credit history, but it happens anyway. For instance, the coronavirus pandemic resulted in millions of job losses, making people default on their loans. As a result, most people landed on the wrong side of their credit scores.
What are Payday Loans?
Do high-interest rates come to your mind when you hear the phrase payday loan? Well, you are right. Payday loans’ main characteristic is the high-interest rates.
In addition, payday loans are short-term borrowings that will help you when you need quick financial help. Payday loans have reduced the frustrations you could get in the bank looking for a short-term loan. The lenders allow their borrowers to repay their loans starting from two weeks to three months.
Payday loan lenders are good enough to give you a loan even with a bad credit history. Most payday loan lenders do not bother with the borrower’s credit scores. Instead, they only need proof that you have a steady flow of income over the last three months.
What is Bad Credit?
Maybe you are wondering what bad credit is. Bad credit comes after you fail to repay your loans at the required time or default on them. Bad credit payday loans are short-term unsecured loans given to people with bad credit.
Once you borrow any loan from a lender, they usually report your repayment behavior to the three credit bureaus in the UK. The credit bureaus are Experian, TransUnion, and Equifax.
The agencies have a scale to determine your credit score after receiving your loan repayment reports.
The scale runs from 300 to 850.
- 300 to 579 – Poor
- 580 to 669 – Fair
- 670 to 739 – Good
- 740 to 799 – Very good
- 800 to 850 – Excellent
Once you have a credit score of less than 580, then payday loan lenders will be the ones to help you with your short-term financial needs.
Payday Loans for People With Bad Credit in the UK
Quid Market Loans:
Quid Market is a UK direct lender that gives out bad credit payday loans to those who need short-term financial help. In addition, your credit score doesn’t have to be that good. You can access a payday loan with a bad credit score.
On Quid Market loans, you can get a short-term loan starting from £300 to £1500. However, if you are a new borrower, you can only access £300 to £600.
Representative APR of this lender is 1296.5%*. However, the maximum Annual Percentage Rate(APR) of this lender is 1625.5%*.
Furthermore, the repayment term starts from three months to six months. However, if you become a repeat borrower, there are other better options.
Cash Float UK:
Cash Float is another site where you can get bad credit payday loans in the UK. This direct lender is willing to help you with a short-term payday loan. The lender believes that everyone has a right to access credit regardless of their previous credit history.
You can apply for a payday loan starting from £350 to £2500 on this site, suitable for minor emergencies.
Interest rate p.a. (fixed) is 185.39%*. However, the RAPR can be as high as 611.74%*, with a repayment term starting from three to six months. Therefore, ensure that you have a steady flow of money to repay the loan during the required period.
Money Line is a direct lender of payday loans to individuals with bad credit history. To access Money Line, you only need an internet connection and a mobile phone.
Your credit score doesn’t affect how Money Line sees you. Instead, they only need proof of income, and you have your funds. One good thing about Money line is that you can apply for a loan while on benefits.
The lender allows you to get short-term flexible loans starting from £100 to £1000. In addition, you will have up to (32 weeks) eight months to clear off your loan. But their Representative APR is 169%*.
Pay Day Bad Credit in the UK gives out payday loans for people with bad credit, as the name suggests. You apply via their online site, so you won’t move an inch from your house looking for loans.
The loan you can get from this company starts from £300 to £1000. And the interest rate p.a.(fixed) is 185.39%* with the maximum RAPR of 611.74%*. This lender allows you to repay the loan within three months to six months. So, if you take the loan, you will have some time to repay.
Loan Princess is a reliable site you can get payday loans for people with bad credit in the UK. This loan broker platform gives you guidelines on accessing a payday loan on their site without much strain.
Loan Princess’ payday loan for people with bad credit starts from £100 to £1000. The lenders on the site give you an extended repayment term starting one to twelve months. In addition, the rate of interest per annum (fixed) is 41%*, and the APR doesn’t exceed 49.7%*.
Having bad credit is no longer a restriction to getting financial help. With Loan Princess, you will get bad credit payday loans in the UK to sort out your emergency needs. However, always ensure you take what you can pay on time, and you may as well rebuild your credit.
* as per the information available online/on the lender’s website as on 05/04/2022.