Loans for People with Bad Credit
Refused a loan because you have bad credit? Payday Loans Online is a direct lender that provides urgent loans to people with very poor credit.
Representative example: Borrow £700 for 5 months. 4 monthly repayments of £235.82, last monthly repayment of £235.92. Total repayment of £1,179.10. Interest rate p.a. (fixed) 222.79%. Representative APR 821.04%. Daily interest is capped at 0.798%. Representative APR includes all applicable fees.
Warning: Late repayment can cause you serious money problems. For help, please go to www.moneyhelper.org.uk
What is a loan for bad credit?
A loan for bad credit is designed for individuals who have poor credit or lack a credit history. These loans prioritize your ability to repay rather than your credit score. This approach improves your chances of approval, even if other lenders have previously denied your application.
During the online application process, lenders conduct an affordability check. You’ll need to provide details about your income and expenses. This information helps the lender assess whether you have enough disposable income to cover loan repayments after essential bills. If the assessment confirms you can manage repayments, the lender is more likely to approve your application.
By focusing on your current financial situation, these loans offer a chance to secure funds, even if past rejections have made borrowing difficult.
Our loan options for
borrowers with poor credit
We offer three types of loans regardless of your credit status. Whether you need quick cash, funds for unexpected bills, or a larger loan backed by your property, we have options to suit your needs.
01
Unsecured personal loans
Get fast access to cash without needing collateral, a guarantor, or a strong credit score. This option provides quick funds without relying on property or third parties.
Loan amount
£300 to £1,500
02
Secured loans
If you need a larger loan but have poor credit, secured loans allow you to borrow by using your property as collateral. This option offers access to higher amounts at lower rates, leveraging your home equity.
Loan amount
£5,000 to £1,500,000
03
Payday loans for bad credit
When urgent expenses arise and traditional lenders deny your application because of bad credit, payday loans provide a short-term solution. These loans cover small amounts to help you manage until your next paycheck.
Loan amount
£300 to £500
Can I apply for a loan with bad credit?
Yes, you can apply for a loan with bad credit directly to Payday Loans Online. Unlike traditional lenders, we assess more than just your credit score. During the application, you’ll need to provide income and expense details so we can complete an affordability check.
If you pass the affordability check, we will still need to consider your credit score. However, our decision to approve or deny your loan is not solely based on it.
The table below outlines how different credit scores may impact approval odds.
| Credit score range | Rating | Considered bad credit | Our credit approval policy |
|---|---|---|---|
| TransUnion: 300-600 Experian: 0-560 Equifax: N/A | Very Poor | Yes | We consider very poor credit and approve if you can pass an affordability test. |
| TransUnion: 601-660 Experian: 561-720 Equifax: 0-438 | Poor | Yes | We consider very poor credit and approve if you can pass an affordability test. |
| TransUnion: 661-720 Experian: 721-880 Equifax: 439-530 | Fair | Borderline | High approval rates. |
| TransUnion: 721-780 Experian: 881-960 Equifax: 531-670 | Good | No | High approval rates. |
| TransUnion: 781-850 Experian: 961-999 Equifax: 671-1000 | Excellent | No | High approval rates. |
Improving your credit score and understanding how credit scoring works can make it easier to get approved for a loan. It can also help you secure better interest rates and terms.
How to apply
We’ve simplified our application process to make it as fast as possible, ensuring you get the money you need urgently.
Choose your loan type
Pick the loan that works for you: Unsecured Personal Loans, Secured Loans, or Payday Loans for Bad Credit.
Complete the application form
Fill in your details, including loan amount, income, and monthly expenses. We’ll perform a soft credit check as part of our affordability test.
Receive your funds
Once approved, we’ll deposit the funds directly into your bank account, often within minutes. Same-day funding means you can access your cash right away.
Who is Payday Loans Online?
Payday Loans Online is a trading style of Western Circle LTD, a trusted direct payday lender that has served UK customers since 2016. Our company registration number is 7581337, and our offices are at Office 9, 2A Highfield Avenue, London, NW11 9ET, United Kingdom.
We have funded over £19 million in fast, secure loans. We have directly helped more than 115,000 borrowers across the UK – from Cornwall in the south to Caithness in the north.
Our lending decisions are fair, transparent, and responsible. We carefully assess and individually review each loan application. This process ensures that every loan decision fits the potential borrower’s current financial circumstance.
Since the Financial Conduct Authority (FCA) implemented an interest cap in 2015, we have consistently adhered to all regulatory requirements. We remain committed to acting as a responsible lender, safeguarding the interests of our customers by implementing strict, compliant lending practices.
FCA-Authorised direct lender
We have been authorised and regulated by the Financial Conduct Authority (FCA) since 13/05/2016 under license 714479, giving you peace of mind that you are dealing with a reputable direct lender.
ICO Registration
We have been registered with the Information Commissioner’s Office (ICO) since 17/08/2012 under registration number Z3305234, so you know we follow strict data protection and privacy practices.
Why choose us?
We’ve been providing short term loans to new and repeat customers across the UK since 2016. Here’s why they trust us – and why you can too with your loan application:
- No Broker Fees – We fund your loan with our own money. You won’t pay broker fees.
- FCA Regulated – We are fully authorised by the Financial Conduct Authority (FCA) under license 714479 since 2016.
- No Hidden fees – We clearly show interest rates, repayment term and total repayment amount upfront
- Your Data is Safe – We follow strict data protection laws. Your personal information is secure and kept private.
- Data Compliant – We are officially registered with the Information Commissioner’s Office (ICO) since 2012.
- Proven Track Record – We have provided payday loans since 2016 proving a strong track record.
- 115k Customers Served – We have directly funded over 115,000 customers all across the UK.
- Responsible Lending Practices – Every loan application goes through a thorough affordability check
- Flexible Repayment Plans – You can repay your loan over 3 to 9 months instead of by your next payday.
- Poor Credit Considered – We welcome applications from customers with less-than-perfect credit.
- Superior Lending Technology – Our team develops our loan systems, resulting in fairer loan decisions.
- Website Security – Our site is encrypted and managed by experts who take data protection seriously.
- UK-Based Support – Our support team is local and responsive. Real people are ready to help you.
- Easily Accessible – Call us or email us between 9 AM – 5:30 PM (Mon-Fri).
- Early Repayment is Possible – Repay your loan early anytime. No penalties, and you save on interest.
- Same-Day Funding – Guaranteed same-day funding for approved loans.
Cost of borrowing £700 example
Here’s the full cost of borrowing £700 with an instant loan from us. The table shows your repayment period, interest rate, repayment structure, interest paid, total repayment, and representative APR.
For breakdowns of other loan amounts, check our full list of loan cost examples.
For more cost breakdowns on different loan amounts, check our list of loan cost examples.
| Details | Example |
|---|---|
| Loan Amount | £700 |
| Loan Period | 5 months |
| Interest Rate P.A. (fixed) | 222.79% |
| 1st Monthly Repayment | £235.82 |
| 3 Monthly Repayments | £224.60 |
| Last Monthly Repayment | £235.92 |
| Total Repayment | £1,179.10 |
| Representative APR | 821.04% |
Is a bad credit loan right for you?
If you’ve been declined for a loan, our poor credit loans might be a good option. As a bad credit direct lender, we focus on your ability to repay the loan rather than only looking at your credit score.
Our loans aren’t suitable for individuals facing long-term financial difficulties. They are best for those who can repay without causing further financial distress.
Loans for poor credit often have higher interest rates and APRs. Be sure to compare them with alternative lower interest loan alternatives before deciding.
Frequently Asked Questions
To check if you have poor credit, review your credit score with agencies like Equifax, Experian and TransUnion. They offer a free one-month trial of your credit report and tips for improving it.
When you apply for a loan with us, you don’t need to know your credit score. We do a soft credit check to find out your current score, which doesn’t affect your credit rating.
Credit reporting agencies use the term “poor credit” instead of “bad credit.”
Experian: Poor credit range is 561 to 720.
Equifax: Poor credit range is 280 to 559.
TransUnion: Poor credit range is 561 to 565.
On your credit report, bad credit incidents such as defaults, County Court Judgments (CCJs), bankruptcies, IVAs, DROs, and late payments stay for six years. If you pay off a CCJ within a month of issuance, it will be removed from your report sooner.
Yes. We start with a soft credit check on every application to review your current credit commitments. If your loan is likely to be approved, we then perform a hard credit check.
A bad credit loan can impact your credit score depending on how you repay it. Paying the loan on time can improve your credit, while late or missed payments can lower it. Additionally, most mortgage lenders may hesitate to approve you for a mortgage if you’ve taken out a bad credit loan within the past year.
No, you don’t need a guarantor to qualify for a bad credit loan. While guarantors can reduce risk for lenders, they are typically required for guarantor loans and secured loans, which are a different financial products.
If you are struggling to repay your loan, seek assistance or advice. You can contact any of the UK debt advice companies listed below for free:
Money Advice Service
StepChange
National Debtline
If you are an existing customer and expect repayment difficulties, call us directly on 0009994433 for support.
Ready to apply online?
No hidden costs or fees
No paperwork
Flexible repayments
Bad credit considered
No obligation to accept
FCA authorized direct lender