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Short Term Loans

£50 - £995

Online decision

Responsible lenders

Rates from 278% to 1576%

3-12 month repayment

Personal Loans

£1k - £25k

Fast decision

60-sec Application

Rates from 4.7% to 287%

3-36 month repayment

Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed).
The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
† Subject to lender's requirements and approval. Not all loan amounts are eligible for 20 minute payouts. Your bank may increase the time you receive the money considerably.

Bad Credit Loans From UK Direct Lenders

Key points

  • Being refused a loan due to bad credit used to be a common reason for not being able to lend.
  • Many UK lenders have a more relaxed approach nowadays and are more likely to consider less than perfect credit.
  • By comparing direct lenders you can find the cheapest option available for your own needs.

If you are lucky enough to have an outstanding credit score backed by a reliable source of income, your chances of getting approved for a loan by a legit lender are usually assured. However, the situation can be quite difficult if you have a bad credit rating.

Most banks and other financial institutions will simply frown upon and even deny your loan applications if your credit history is less than appealing. The good news is that there are other lenders who can give you quick and easy-to-apply loans regardless of your credit rating.

It is, however, important to understand how bad credit loans work before you commit yourself to one. Bad credit loans can be quite beneficial to anyone with urgent financial needs or those having a cash flow problem.

There are many people all over the UK who have benefited from bad credit loans and so can you.

What are bad credit loans?

Bad credit loans are a form of credit in which the lender does not focus more on the borrower’s credit history than the affordability of the loan and the ability of the borrower to pay back the loan on time.

This means that instead of using the traditional methods of running a credit check on the borrower, the lender simply checks if the borrower can afford to pay the loan before approving or rejecting his or her application. If you have a steady job or a reliable source of income, you will be approved for a bad credit loan despite your bad credit history.

How fast will I receive the funds if my bad credit loan is approved?

Once your application has been approved, you will receive the money on the same day or even within the hour depending on the lender you choose.

Most lenders will transfer the money to your bank account in just a few minutes but definitely within the same day. You can even contact the lender if the funds take too long to appear in your bank account.

To avoid delays, make sure that you provide correct bank details on the application form. Keep in mind that you will need to have a current account in a UK bank into which the loan will be paid.

Can I use a bad credit loan for any purpose?

Of course, you can. One of the best things about this short-term loan is that there are no questions about how you plan to spend the money.

Unlike banks and other institutions that want to know how you plan to spend the money they give you, short term loan direct lenders do not restrict you to specific projects or purposes to spend your loan on. You won’t be denied the loan simply because of the reason or purpose you intend to spend the money on.

How long does it take before I know if my application has been approved or denied?

All the lenders we work with understand that when you apply for a bad credit loan you need the money fast to take care of urgent issues. This is why loan applications get an automatic instant decision regardless of your credit status. You’ll instantly know if your loan has been approved or not whether you have good or bad credit.

Will my credit history affect my loan application?

Gone are the days when bad credit meant that you could not apply for any loan. You can easily apply and get a quick loan on the same day despite your bad credit history. Having a bad credit history will not exclude you from getting a loan.

In fact, most of the lenders we work with have some of the highest approval rates in the personal loans industry. The online application process takes just three to five minutes to complete and you get an instant decision about loan applications. You can apply for any amount up to a maximum of £2,500 or even more depending on the lender’s limit. Your credit rating has little effect on the decision to give or deny you the loan.

Bad credit loans are created for people whose loan applications have been denied by banks and other financial institutions because of the borrower’s low credit score. If you urgently need money for something important but feel that your low credit score will prevent you from getting a loan, bad credit loans are your best option.

Most of the lenders who give out bad credit loans understand that the borrowers may lack good credit scores but are capable of paying back the loan. The lender we match you with may perform a credit check on you but this is usually a soft search to understand your financial history better but not to deny you the loan. It is quite possible to get the loan despite your spotty credit history.

How do I choose a legitimate bad credit loan lender?

There are many lenders today providing all types of loans including bad credit loans. It is therefore important to take time and research to find the best bad credit loan lender with the lowest interest rates and favourable terms.
You don’t want to jump onto the first lender you come across or you might end up paying a lot more than you have to. A good lender will give you a good deal on the loan. It will also be important to ensure that the lender you choose is fully authorised by the FCA.

To help you find the best bad credit loan lenders on the market today, LoanOvao provides an easy-to-use and no fees platform to submit a request for any type of loan. Our platform is secure which means your information remains with us and is never shared or sold to third parties. We also ensure that you get fast results once you submit information and we match you with the right lender instantly.

We even have a borrowing power calculator to help you determine how much you can afford to borrow before you submit your application for the loan.

See What Other Kinds of Loans We Do

Though we specialise in Doorstep or Home Collection loans, we also offer a wide variety of other forms of finance to help you find the perfect plan to suit your needs

It doesn’t matter how much you are looking for or what your credit history is like, we will be able to find you the best rates possible.


Fairly self-explanatory and so easy to get, a £100 loan is for those times that you need a little extra cash and quickly. Nearly anyone can get one of these loans with no issues at all, regardless of your credit history.

6 Month Loans can be a variety of amounts, whatever you think will suit your needs. The term, however, is fixed at 6 months. What this means is that the rate is fixed, allowing you to get the best out of your money. If you are looking for a slightly longer term length then this is a great option for you.
We all know how hard it can be to save, each time you get some a new issue will arise and bring you a step back. It doesn’t have to be that way though, a car loan is perfect for when you are looking at getting a new vehicle. Car Loans allow you to get the vehicle you are looking for without the usual hassle. This way you can pay as you go with your car
Very much like a payday loan, the Cash Cow Loans market has become popular with those that have a bad credit history. The difference is that a Cash Cow Loan does not have to be repaid in one instalment at the end of the month but can instead be over a 3 month period for example.


This type of loan is designed specifically for those that have an extremely bad credit score and are very likely to be refused by any normal lender due to their high risk. A Guaranteed High Risk Loan means that anyone that has been refused multiple times in the past or those that have been blacklisted will still have the chance to get the money they need.


An Instant Cash Loan is for those that are in a hurry to get the finance now. By using this sort of loan you will find that you get the funds in no time at all. Once approved you will get the cash straight into your account within 15 minutes. Fast Loans is one of the fastest ways to gain access to money on the loan market. Even those that have been blacklisted will be able to apply.

These loans are very small by their nature, often the amounts borrowed are around the £100 mark and no more than £500. They are usually only taken out for a couple weeks and never more than a few months. Mini-credit Loans were designed for those unexpected moments like a surprise bill or a car problem.
In the modern world, we are able to use our mobile phones for so many different things. We can use them to order food or other items from the internet. We can use them for looking at our bank accounts, sending and receiving money on the go. We can use them for so many things, so why not for borrowing. Whether you have an internet connection and feel like doing a £100 Text Loan or whether you want to use an SMS Loan instead, both are easily done today.