The Home of Honest Lending

CCTA and FCA registered

Next payout in...


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.

Poor Credit Loans for Bad Credit – Finding Direct UK Lenders

Key points

  • Poor credit loans are designed for people with limited borrowing options due to bad credits scores. They are also tailor-made for unemployed people and university students.
  • Like other short term loans, poor credit loans are built to relief emergency financial situations. Hence they can also be compared to personal loans.
  • Bad credit loans do not always come with high fees and unrealistic deadlines. Collaterals may also not be needed.

You need to borrow extra money because sometimes things don’t happen the way we planned, as simple as that. Perhaps an unforeseen expense popped up, maybe you need to pay off rent that will be due in the coming days, or you need to purchase materials for a home improvement project. And sometimes the money you need isn’t that much – 500 pounds or maybe a bit more.

Ideally, you would want to have a healthy savings account that you can turn to in case you need to go over your budget. But the reality is, many of us in the UK don’t have enough in our savings to deal with emergency situations. To make matters worse, a lot of us have “bad credit” or a term loosely tagged to people who have poor credit scores.

So the question now is, if you had bad credit and need to borrow money right away, where can you turn to in satisfying your need for funding? The answer: poor credit loans!

What are poor credit loans?

A poor credit loan is a type of loan offered to borrowers with weak, bad, or no credit. There are numerous kinds of loans and financial institutions that provide them with banks, credit unions to specialist online lenders. Normally, poor credit loans have relatively higher interest rates as lenders charge higher rates to borrowers with bad credit than they would to borrowers who have excellent credit. This is because borrowers with bad credit are deemed “risky” or are more likely to default from their loans and to compensate for this risk, lenders will need to charge higher.

But what is a good credit score and what is a bad one anyway? Typically, if you have a FICO score under 600, it will be considered as bad credit. If you are unaware of what your credit score is, you can access it through your online bank account or credit card statement. You can also get a free credit score through different websites on the internet.

What to expect from Poor Credit Loans when you have Bad Credit

The most important thing that you need to prepare yourself for when you are considering taking out a poor credit loan is that the cost will be significantly higher. If you have bad credit, this reflects a negative history of paying off debts late or completely defaulting from them. Because of your problematic history in managing debt, this makes it riskier for financing companies to lend you the money that you are requesting. From their point of view, you have had issues with paying debts in the past and this could repeat once you take out another debt with them. If they lend you a thousand pounds, there is a very real risk that they won’t get their money back.

To compensate themselves for taking on the risk involved in your borrowing, lenders will charge higher interest rates (the cost of borrowing money) if you have bad credit. But higher interest rates are just one thing as there are also certain advantages that you can enjoy if you take out poor credit loans for bad credit which include:

  1. You can obtain legitimate funding even if banks and other traditional financing institutions have rejected you. This means that your rights as a borrower are still protected under law and the mandate of the FCA or Financial Conduct Authority (the governing body in UK’s loan industry.
  2. Because poor credit loans are normally designed to provide funding for people who are caught up in emergency situations but have bad credit, expect an application process that is tailored to be as quick as possible. It is even possible to enjoy same day funding once you are approved.
  3. The financial products are normally offered online which means you can easily access them at home or at work anytime you need to. You don’t need to fall in long queues or set up appointments as the application process can be completed at an online lender’s website.
  4. There are poor credit loan options like doorstep loans that will have your money delivered right at your doorsteps. So if you are looking for a convenient means of funding, you can consider the financial products as a viable solution.
  5. The type of loan will also help you to rebuild your credit back to favourable levels as long as you manage to pay it off in time and on the agreed terms and conditions. With a new and better credit score, you can access more loan options for better rates and terms in the near future.

Poor Credit loans with no guarantor

There are two basic types of poor credit loans that you can take out in the UK today if you can’t offer any form of the guarantor to co-sign your loan deal: secured and unsecured.

  • An unsecured poor credit loan means that you will sign a loan contract promising to repay the loan in the agreed terms and conditions. If you fail to repay your loan, the lender can pursue collection of the money that you still owe them through a collections agency or any other legal mechanism including settling it in court. Some of the most popular unsecured loans in the UK include personal loans, student loans, credit card loans, payday loans and Peer 2 Peer loans.
  • A secured loan for poor credit will require you to offer a valuable item such as a car or home that will serve as collateral tied to the loan. This means that if you are unable to repay your loan, the lender has the legal power to seize the collateral and sell it to recover the money that you still owe them. Typically secured loans include mortgages, logbook loans, and pawnshop loans.

Secured loans normally come with lower interest rates, bigger borrowing amounts, and longer payment terms than unsecured types because of the presence of collateral that provides security to the lender. However, there is a real risk that you would lose the asset that you offer as collateral in the event that you default from your loan. With that being said, try to determine which option is better suited to your needs or present circumstances.

Poor Credit Loans with a guarantor

A poor credit loan with a guarantor shares some similarities between an unsecured type of loan and a secured one in a way that you don’t need to offer some form of collateral to get approved but you will need to provide a guarantor who will co-sign your loan deal. The guarantor will literally guarantee that the loan will be paid back since in the event that you miss out from your payments or default from them, he/she will be the one to step in and take over the payment duties.

Your guarantor can be anyone like a family member, relative, or close friend as long as:

  1. The person is at least 18 years or 22 years of age at the onset of the loan
  2. Is a citizen or a legal resident of the United Kingdom
  3. Possess a strong credit rating and income level that is enough to cover the loan’s repayments
  4. A homeowner (although there are lenders who allow your guarantor to be a tenant)
  5. Someone other than your spouse

Once you find a suitable guarantor who can back up your loan deal and offset the risk involved in your bad credit, you can access a loan that:

  • Provides reliable funding anywhere from £1,000 to £15,000
  • Flexible payment terms tailored to your needs and present circumstances
  • No extra fees and charges for early repayments (you can pay off your loan in advance to save on interest rate payments)
  • One of the best interest rates you can get if you have bad credit
  • Instant funding if you apply for same day guarantor loans

Poor Credit Loans from a Direct Lender

Sadly, the bad credit loan market is riddled with loan sharks and dubious lenders who are ready to cash in on people who are desperate for quick funding due to their inadequate qualifications. It doesn’t mean, however, that you won’t be able to secure a safe and legit poor credit loan in the UK. Here are the steps you can use to find responsible, legitimate direct lenders who can get you’re the money you need today and even help you rebuild your credit score.

  • Find a lender who offers unsecured instalment loans. Personal instalment loans for poor credit allow you to borrower longer terms and lower rates that are designed to be repaid back with comfort. This ensures that you won’t be taking out a loan that will become an unmanageable debt to your life and make your credit history even worse than it is right now.
  • Consider your ability to repay. Your capacity to afford the loan and its repayments are the single most important factor that both you and your lender should consider before you agree to a loan deal. While loan sharks would want to entrap you with a short-term, high-interest form of credit that would be difficult for you to pay back (resulting to a deadly cycle of re-borrowing or extending the life of your loan in exchange for additional fees and interest), a responsible lender will always look at your income, bank statements, and other factors that will determine your ability to repay the loan before making an approval decision.
  • Choose a lender that conducts a soft credit check. You should refrain from dealing with direct lenders who conduct what is referred to as a hard credit check. This kind of credit check can alert credit bureaus and damage your credit score. Hard credit checks are normally performed by lenders or credit card companies but will need your authorization to do so. With a hard credit check, it can linger in your personal credit report for two years at most. Instead, find a direct lender who performs what is called a soft credit check. Soft credit checks can be performed by you, your lender, a potential employer or a landlord. Soft credit checks will not leave a mark on your credit report which means you or your lender can do it as much as you want.
  • Provides flexible terms and repayment schemes. When you’re searching for the right direct lender, be sure to consider the kind of payment term that you will follow once you opt for its loan services. Normally, reputable and responsible lenders will always provide a payment term that is ideal for your needs and present circumstances. They will never give you a payment structure that will be too heavy to your monthly budget. Simply put, they want to help you pay off your loan that’s why they will always give you a repayment scheme that you can genuinely afford and stick with.
  • Reports your payments to the credit bureaus. The direct lender you choose should report all your repayments to the credit bureaus since it will help you improve your credit score over time. Before you sign any contract with a potential lender, be sure to ask them if they report on-time payments to the credit bureaus. If they do, you can use that poor credit loan to solve your short-term problem and grow your credit over the long term. With a better credit score, you can gain access to more loan options with better rates and terms in the future.

Finally, make sure that the lender you choose is FCA registered. The FCA or Financial Conduct Authority is the governing body in the UK’s loan industry. If the lender does not have an FCA license, then it’s an illegal lender or a loan shark and it would be best to avoid such lender at all costs. You can check a particular lender’s license or credentials on the FCA’s website.

Poor credit loans in the UK and poor credit loans to enjoy instant funding

When your rent, monthly bills and insurance premiums are due in the coming days and the combined money left in your pocket and savings account is not enough to cover them, you will need to take out a loan. And if you have poor credit, is it possible to get quick funding? The answer is yes as there are plenty of online lenders in the UK who provide poor credit loans with instant funding with basic qualification requirements.

Poor credit loans with instant funding

Poor credit loans that provide instant funding are usually small emergency loans available in amounts anywhere from £100 to £1,000. And because its offered in small amounts, it also has short payment periods from a month to a few months depending on the type of loan and the lender providing it. The great thing about these quick and reliable loans is that you don’t need to have a perfect credit rating to get approved. In fact, you can get approved even if you have bad credit and are unemployed as long as you have some reliable source of income like government benefits that is enough to pay back the loan.

The instant approval

With the kind of financial products, you can expect an approval response from your lender in a matter of minutes. It’s almost instant and once your application has been approved, you can normally receive the loan amount that you requested for on the same day. Here are some important points to bear in mind with your funding though instant poor credit loans:

  1. There are lenders who can only provide you with same day funding for a particular fee
  2. There could be a time period in which you will be able to receive your funds e.g. until 3 P.M
  3. It can take several hours to receive your funds, but in some rare cases it may happen even in one hour

Ultimately, the speed in which you receive your loan amount will depend on the lender and the time in which you completed your application. There are many lenders who are not capable of same day funding and would transfer your loan proceeds to your bank account on the next business day.

How same day poor credit loans work

Let’s look at how same day poor credit loans in the UK work through a quick example. Say you are waiting for your paycheck to arrive but rent and bills are already due. Your paycheck may arrive tomorrow but you will lose utility services and housing if the bills are not paid today.

You need £500 today to pay off those urgent bills. You apply online for the same day poor credit loan like a payday loan through a direct lender. You are approved instantly and the funds are then direct deposited several hours later, with just enough time to pay the rent and bills.

The loan is quite expensive as you will need to pay £50 within the next month along with the original amount that you borrowed. However, this is a small price to pay compared to the catastrophic financial and emotional costs that you will possibly incur when you are evicted from your apartment.

Poor Credit Loan FAQ’s

What is a poor credit loan?

This is a kind of personal loan offered to people with poor, bad or no credit. There are different types of loans and different types of financial institutions that provide them-credit unions, banks, online lender, etc.

While this may vary depending on the financial institution offering the loan, bad credit loans are often very expensive. Some lenders feel more comfortable attaching high-interest rates to bad credit loans.

How Do I know if I have a poor credit rating?

If you have defaulted on a loan before, or you have a legal judgment against you because of unpaid rents, traffic tickets or utility bills, chances are that your credit rating is pretty low. Different online sources will give you an idea of your current credit rating.

What type of bad credit loan do I need?

While the nature of the financial emergency you have will determine the kind of loan you take, poor credit loans could come in the form of house loans, auto loan, personal loan, auto title loans, and payday loans.

All of these loans have their pro and cons, but some will be wise choices if they match your current financial situation. While some should be avoided completely.

Do I need collateral to secure a poor credit loan?

Secured loans are often backed by a piece of property belonging to the borrower, in most cases a house or a vehicle. The borrower stands to lose the property if he/she fails to keep up with the debt repayment plan. As a result, secured loans have lower interests. On the other hand, unsecured loans such as poor credit loans are high-risk loans that do not require a collateral. The lender bears a large portion of the risk of bad credit debt. This is why unsecured loans are usually very expensive.

Whether you’d need collateral for a bad credit loan depends on how much you want to borrow and the lender you choose to work with.

Can I get a bad credit loan if I am unemployed?

Yes, you can secure some loans while you are unemployed, but you are better off sourcing for funds through another means. It doesn’t make financial sense to take loans when you do not have a stable source of income, its risky and probably unnecessary. It makes more sense to build up your credit score and create some financial stability first.

How can I identify a poor credit loan scam?

Identifying loan scams is pretty easy if you keep your eyes open. There are obvious red flags to look out for, common ones include unrealistic guarantees, funny company names, upfront fees, un-initiated contacts, unrelenting persuasion to divulge personal information, and threats.

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.