Is It Possible to Get Short-term Loans with Bad Credit?
Short-term loans are provided for those in need of quick cash until the next paycheck. There could be many situations when people need money urgently but have no access to it, like a medical emergency or rent.
One of the reasons that hinder people from getting a short-term loan is their bad credit score. Typically a credit score lower than 560 can be an issue when you apply for a short-term loan from UK direct lenders.
Luckily, you can get short-term loans from our panel of lenders even if you have poor credit history. With bad credit short-term loans, your credit worthiness is not assessed based on your credit score. Instead, the panel of lenders evaluate your debt-to-income ratio, employment status, current income, and much more.
However, a bad credit short-term loan might come with high interest rates. The Financial Conduct Authority (FCA) has set maximum limits to what bad credit short-term loan lenders can charge borrowers in the UK. This includes both limits on interest rates and other additional costs.
We Help You Get Urgent Loans For Bad Credit
FastPaydayLoans helps you increase your chances of getting a loan by connecting you with lenders who are willing to offer loans even if you have bad credit. We don’t charge any upfront fee and keep your data safe with high-end security.
To request a bad credit loan, all you need to do is follow these steps:
Step 1: Complete the Online Form
Go to FastPaydayLoans homepage and click on ‘apply now’ to start your online application. You can fill the form within 3 minutes by providing basic information such as your full name, date of birth, and loan amount required.
Step 2: Get Fair Rates
FastPaydayLoans helps you connect to our FCA-approved panel of lenders who can give you an instant decision on your loan funding. You can get the fairest rates in the market no matter what your credit score is.
Step 3: Receive Your Funds
Once the terms of your loan are finalized, our lenders can deposit the funds to your bank account as quickly as the same day.
How much would you like?
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).
How Do I Check if I Have Bad Credit?
Before you connect with a lender to get a bad credit loan, we recommend that you check your credit score first. Once you know your credit score, you can have a better idea of how you compare with other borrowers in the country.
You can check if you have bad credit through Experian, the UK’s largest credit reference agency. All you need to do is register on the Experian website and access your credit score immediately. The entire process is simple and is free of cost.
If you are looking for your full credit report, then you can register for the free 30-day trial of the CreditExpert service by Experian. This gives you access to a detailed report including a breakdown of your credit score.
Any score between 881 and 960 is considered good credit. However, the average credit score range is between 721 and 880. Any score below 720 is considered bad credit. A poor score may fall between 561 and 720, whereas a very poor score would be anything below 560.
Borrowers with poor or very poor credit may have to pay high APRs and interest rates on their loan. However, every lender is different, and it is always a good idea to check the lender’s policy before requesting a loan.
Does Getting a Short-term Loan Hurt My Credit?
Essentially, getting a short-term loan will not hurt your credit. However, there are a few scenarios where a loan could damage your credit score.
If lenders conduct a hard check on your credit history, it will be recorded on your report. In case the lender rejects your loan request after checking your credit history, then the rejection will have a negative impact on your overall credit score.
Additionally, short-term loans can also hurt your credit if you are unable to make the repayments on time. With every late payment, your credit score can further deteriorate.
Should I Get a Bad Credit Short-term Loan from a Credit Broker or a Direct Lender?
When you decide to get a bad credit short-term loan, you have two options: a credit broker or a direct lender.
Bad Credit Short-term Loan from Credit Broker
Credit brokers are loan companies who partner with a variety of different independent lenders. This way, they have access to a majority of the lending market, giving you higher chances of getting your loan funded.
Through credit brokers like FastPaydayLoans, all you need to do is enter your loan amount and preferred repayment terms once. Then, the broker service will evaluate your request and help you match with suitable lenders who are willing to lend you funds.
Not only do credit brokers give you a variety of options from various lenders, but they also help you get the best loan terms such as a reasonable interest rate.
Since the credit broker service connects you to lenders, there is only one credit search recorded on your report. This way, you can avoid damaging your credit score further and get your loan funded as quick as possible.
| Why Trust FastPaydayLoans? | ||
|---|---|---|
| How much can I take out? | £100-£5000 | No obligation quotes |
| Representative APR | 49.7%(variable) | Competitive rates |
| Will bad credit be accepted? | Yes | Lenient requirements |
| What are the repayment periods? | 1-36 months | Flexible loan term options |
| How can I apply? | Apply online | 24/7 available |
Bad Credit Short-term Loan from Direct Lender
This option means that you apply for a loan directly from the company that you want to borrow from. This includes requesting loans from banks or other financial institutes.
One of the biggest drawbacks of getting a loan from a direct lender is that your rejections will be recorded on your credit history. This means that the more you apply with different lenders, the worse your credit score will get.
If you plan to request a bad credit short-term loan from a direct lender, then you should always double-check their FCA registration. Make sure that the company is well-reputed and has positive customer reviews from other borrowers.
Advantages & Disadvantages of Bad Credit Short-term Loans
If you need extra cash to get you through the month or need to pay for a big expense, then getting a bad credit short-term loan is your best option. Before you request a loan, here are a few advantages and disadvantages that you should consider:
Advantages of Bad Credit Short-term Loans
Quick and Simple Process
With fast online short-term loans, the entire application process only takes around 5 minutes.
Unsecured Loans
Short-term loans are not secured against any asset that you own. Even if you miss a repayment, you do not risk losing a valuable asset such as your home or car.
Flexible Repayments
Most lenders on our panel offer short repayment terms that allow you to minimize your debt quickly and efficiently.
Disadvantages of Bad Credit Short-term Loans
High Costs
Since bad credit loans come with high interest rates and APRs, the overall cost of borrowing is likely to be high.
Short Repayment Time
Short-term loans are designed to be paid back as soon as you get your next paycheck. If you are unable to make these repayments on time, then you might face serious financial stress.
Should Not Be Used as a General Loan
Many borrowers forget that short-term loans are designed to help you cover a one-off unexpected cost for the short term. You cannot use the funds from a short-term loan as extra cash to spend on unnecessary things.
Frequently Asked Questions about Short-term Loans Bad Credit UK
How quick can I get short-term loans for bad credit?
Even if you have bad credit, you can get a quick short-term loan with our vast network of UK lenders. Once your application is approved, the independent lender can deposit your funds as quick as the same day.
What is a bad credit score?
A credit score below 720 is typically considered a bad credit score. However, many lenders have different opinions regarding a bad credit score so you should always check their terms first.
Should I consider applying for a bad credit short-term loan?
If you need extra cash for an emergency expense, then you can apply for a bad credit short-term loan. These loans are designed to help you get through the month without additional financial stress, even if you have bad credit.
Can I repay my loan early?
The loan terms depend on the independent lender that you connect with. Some lenders offer early repayment options to help you pay off debt quicker.
What can I use instead of a short-term loan?
Some short-term loan alternatives include asking your relatives or friends for cash or using your credit card to pay for a one-off expense.
