Small Loans – Even With Bad Credit
Borrow £250 to £3,000
- Bad Credit Accepted
- Fast Payout
- No Fees
- Secure Application
Short Term Loans
£250 – £3,000
Rates from 278% to 1576% APR*
3-12 month repayment
£1,050 – £3,000
Whole of Market panel
Trusted panel of lenders
Rates from 5.7% to 278% APR*
3-36 month repayment
Representative example: £500 borrowed for 5 months. Total amount repayable is £991.85 in 5 monthly instalments of £198.37. Interest charged is £491.85, interest rate 238.1% pa (variable). Representative 481.6% APR.
- Loans up to around £1000 tend to be considered small by most UK direct lenders.
- They can usually be accessed quickly online in a matter of minutes depending on eligibility.
- As the amounts are relatively small, even applicants with bad credit can be considered.
There will come a time when you will need a loan to take care of a short-term financial problem. Our goal is to help people get a short-term loan for small amounts online with ease and convenience.
If you want to take out a small loan (lower than £1000), our trusted network of credit providers will grant small loan requests payable for a few months up to 12 months. Should you be granted a small loan, you can repay the debt earlier than agreed upon – doing so will save you some money from reduced interest.
Unlike other loan products, you will enjoy the freedom to choose the loan amount as well as the repayment period.
Get yourself a small loan today.
Quick online application takes minutes.
What is a Small Loan?
Small loans are financial products suitable for people with an urgent financial emergency and require a fast but effective short-term solution.
A small loan can give you as much as £1,000 and payable within a year. Borrowers will usually pay back a small loan in several weeks because the borrowing usually only serves as a temporary financial fix.
Why should I apply for a small loan?
There are several reasons why a small loan is a good idea; a medical emergency or unexpected repairs are good reasons to apply for a small loan. In times when you do not have enough cash in your wallet, a small loan is an excellent option.
What benefit will I get from a small loan?
When used the right way, a small loan will help you take care of any emergency expenses especially is there is not much left in your bank account. Small loans are great for paying off sudden repairs such as a broken boiler or a damaged roof. It can be very daunting to not have enough money to take care of financial emergencies. Many people experience anxiety in having to wait for their next payday not knowing that there are viable solutions out there.
When do you need to obtain a small loan?
Getting a small loan can be handy in different emergency situations, such as:
- To pay off an urgent bill
- To repair a broken-down car
- To fix a boiler that is not working properly
- To get immediate medical treatment
- To take care of sudden and important home repairs
You can expect to get at least several hundred pounds when you apply for a small loan. These types of borrowings are convenient and suitable for short-term cash emergencies because you can opt to pay them back in a few weeks or in several months.
Many people do not have enough saved for emergencies – which are difficult to predict in the first place. Financial advisers will recommend setting aside at least three months’ worth of salary. However, a lot of people have difficulty doing this because of the cost of living.
A small, short-term loan allows you to take care of your financial woes in an instant while letting you pay back the loan in a fixed monthly schedule.
How does the small loan process work?
A borrower must meet the minimum requirements of the loan provider to be granted a small loan.
If you are interested in getting a small loan, you will need to submit an online loan application which will be reviewed by our trusted loan providers. These lenders will look at your application to review your capability to pay off a loan.
An applicant should be a UK resident and must be 18 years old or older. One of the minimum requirements of small loan providers is that the borrower is gainfully employed, whether full-time, part-time, or freelance. Most direct lenders require the borrower to earn at least £750 each month to be granted a small, short-term loan.
The applicant should also have a working mobile phone number and email address. You must be available to answer the lender’s calls so that your application can be processed quickly. The loan agreement can be digitally signed as acceptance of both parties.
Lastly, the loan applicant should possess an active bank account where the loan payments can be collected by the lender through a CPA or continuous payment authority.
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How can I obtain a small loan?
You can apply for a small loan in two ways: online or in-store. Many people prefer applying online because of its convenience.
Getting a small loan is easy when done online – either through your desktop computer, tablet, or smartphone. There are numerous service providers offering small loans online either as a loan broker or a direct lender.
You need to supply vital personal and financial information on the online application form. It is best for you to be honest and provide accurate information in your application. Providing half-truths will likely affect your application in a negative way.
Filling up the application form will take about 3 to 5 minutes and you can expect a decision from the loan provider in a few minutes after submitting your form.
Submitting a loan application form in-store is not as convenient or quick as the online route, but an in-store service provider may offer more chances of getting your loan approved.
The application form will be reviewed by a group of trusted lenders and then you will be matched to a loan provider who is willing to grant you a small loan.
When you apply through us, your application will only be reviewed by direct lenders that are regulated by the FCA or Financial Conduct Authority. We are committed to providing the best service to our customers so we make sure to work with lenders who follow ethical lending practices.
An in-store application and an online loan application will require the same information from you, such as your salary information. It is best to bring your latest 3-month payslip for your in-store loan application, along with your latest utility bill and a valid photo ID.
When do I need to repay my small loan?
When you take out a small loan, you are required to pay back the loan based on the agreed-upon schedule. A small loan, just like any type of loan product, is bound by a credit agreement. Fortunately, you can pay back the loan earlier or make additional payments against your loan. Doing so establishes your creditworthiness which will eventually help you obtain future loans deals with better rates and terms. It is a must, therefore, to understand the loan’s terms and conditions to make sure you do not violate or misunderstand any of the policies surrounding it.
How can I be eligible to obtain an online small loan?
Anyone can take out a small loan over the Internet. If you are in need of a small loan, you should fill out our online loan form so that you can get an immediate decision from any of our trusted loan providers. Once your loan application is successful, you may be able to receive the funds on the day it was approved or the following banking day.
What will be the cost of my small loan?
The total cost of your borrowing depends on the lender offering the loan. In general, a small, unsecured loan is more expensive than a personal loan from a bank because of the higher interest rates and the shorter repayment terms.
What is the applicable interest rate for my small loan?
The annual percentage rate or APR of a small loan can be over 100%, so it is possible to have a representative APR of more than 1000%.
There are price caps put in place by the Financial Conduct Authority, however, to ensure that small loans will not exceed a daily interest rate of 0.8%.
The interest rate of the loan, however, is only a portion of the total loan cost. You should analyze how much you are required to pay every month for the entire loan duration. This will help you better understand the total cost of your loan each month.
Will a small loan affect my credit score?
Your credit score is significantly affected by how you manage your loan payments. If you pay out the loan on time and in full, your credit score improves. This payment behavior is noted by credit bureaus and loan providers which means you may get better deals on loans in the future.
However, if you do the opposite, your credit score will be adversely affected. Non-repayment or paying late will make it challenging for you to obtain credit in the future. It is therefore pertinent that you handle loan repayments responsibly to avoid breaking the trust of your loan provider.
What are bad credit small loans?
If you earned bad credit due to some financial mistakes in the past, you can still apply for a small loan. However, your low credit rating indicates to lenders that you are a high-risk borrower. Small loans for bad credit often carry higher interest rates to compensate lenders for their risks in giving credit to borrowers with imperfect credit histories. Direct lenders who offer bad credit loans may want to widen their customer reach and also provide financial solutions to people with various credit scores.
What are the available types of small loans?
You will find different types of small loans in the market for different purposes. There are other small credit options available, such as:
- Credit cards
- Logbook loans
- Payday loans
It does not matter what type of small loan you are planning to take, it is important to understand the loan agreement to ensure that you can comply with your financial obligations.
What are the benefits of taking out a small loan?
- A quick and convenient loan application process
- Flexible repayment terms
- Loans regulated by FCA price cap
- You can borrow only what you need
Final Word on Small Loans
Small loans are easy to obtain no matter what purpose you have in mind. However, you should not consider a small loan as a solution to your long-term financial problems. A small loan must only be obtained for emergencies as much as possible. In a nutshell, a small loan is only a short-term financial solution.
People who find themselves struggling with long-term financial dilemmas should seek advice from Stepchange, Money Advice Service, and other similar organizations.
Most of use encounter cash emergencies every once in a while. If you have insufficient funds or do not have anyone else to turn to, a small loan may be a quick and suitable option.
Remember that small loans are high-cost loans that can help only with sudden, unforeseen short-term financial shortages. Do not use small loans to fund frivolous and unnecessary purchases.