Loans for Poor Credit Scores.

Yes. Our broker has lenders on their panel that specialise in providing poor credit personal loans. Applying for a poor credit loan via Payday UK will not harm your credit score. This is because lenders initially only perform a soft credit check, which leaves no mark on your credit report. However, it’s essential to make all the repayments as agreed on any loan you accept, or it can damage your credit score and affect your ability to get credit in the future.

Payday UK’s broker partner offers you access to a panel of industry-leading direct lenders. This means you can apply for a personal loan from £50 to £5000. This could be a short-term loan without a guarantor, a long-term poor credit personal loan, or anything in between. The exact type of loan that will best suit your circumstances is different for everyone. However, you can rest assured that Payday UK will find you the loan with the lowest rate of interest for your situation from our panel.

A guarantor may be required for you to meet the criteria for a poor credit loan. However, the need for a guarantor tends to depend on the direct lender that is offering you the best deal. Some will insist on a guarantor while others will not need one. The best way to find out whether you need a guarantor is to apply.

Your credit score improves typically with every loan or line of credit that is successfully completed as long as repayments are not missed or late. Taking out credit and making all the repayments on time demonstrates that you pay your way and can be trusted to manage your finances sensibly. The improvement to your credit score won’t happen as soon as you accept the loan offer, but it will count in your favour as every payment is made on time.

Lots of people miss a payment date for a variety of genuine reasons. For example, a payment date can be missed because a bill is being disputed. Missing a single payment on one item won’t automatically ruin your credit score. Continuing not to pay a debt or failing to pay several debts at once will harm your credit score.

Some companies may disregard a single missed payment if you have made all other repayments before and since on time, while also paying other debts on time.

Payday UK’s broker allows people to apply for poor credit loans on the same basis as ordinary payday loans. This means you can borrow from £50 to £5000 and repay your poor credit loan over a period from 3 months to 36 months. Shorter periods are typically selected by people that are borrowing a smaller amount. A larger loan is usually more manageable when repaid over a longer time.

The amount of your repayments is dependent on several factors. How much you borrow, and the length of the repayment term will be the most significant factors. If you borrow a large amount over a short period, the payments will be bigger. A smaller amount repaid over a longer period will lead to lower repayments. However, a more extended repayment period is likely to cost you more in interest overall, even though the payments might be more manageable.
It’s essential to be realistic about your monthly budget by selecting a term length where you know you can comfortably afford the repayments.

The interest rate for poor credit loans varies from lender to lender. The short term loans market has exploded in popularity in recent years. This is good news for consumers, as having more companies offering this type of loan makes the market more competitive. This means they will all offer exclusive deals or attractive rates to try to win your business.

One of the most significant factors in determining how much interest you are going to be charged is the risk you pose. If you have a poor credit score or a CCJ on your record, then lenders will see you as a higher risk. The more your credit score increases, the lower the risk. This can be reflected in the interest rate you’re charged.

Every lender has different terms and conditions for their loan. Typically, there won’t be any charges if you repay the loan early. Sometimes repaying a loan early can create a reduction in interest. Whether this applies to your loan will depend on the agreement you have with your lender. If you’re unsure what paying early means for your loan, simply ask your lender or read the terms of the deal. All out lenders are registered with the FCA (Financial Conduct Authority) and abide by the rules and guidelines set out by them.