Short Term Loans for Borrowers with Bad Credit

If your credit score is less than stellar you’re not alone. Nearly 15 million UK residents are currently struggling with bad credit, often through no fault of their own. Now, you might believe that a troubled credit history automatically means you won’t be eligible to borrow money. But that’s not necessarily the case. You may actually have more lending options than you realise.

If a poor credit rating is stopping you from applying for the loan you need we may be able to help. Bad Credit Loans offers short term loans for people with poor credit histories. These bad credit loans can help you to successfully deal with life’s little financial surprises, covering unexpected costs that can crop up while you’re waiting for your next payday to arrive.

What do We Mean by ‘Bad Credit’?

Credit ratings are based on a person’s borrowing history. They are used to assess a borrower’s creditworthiness. A poor credit history can adversely impact your ability to secure much the financing you need to purchase a home or a car. Bad credit can also limit your access to much needed emergency loans to cover unexpected expenses.

A poor credit score can be the result of a variety of different factors. For some people it’s simply a matter of having no real credit history at all. If you’ve never had an ongoing credit of any kind lenders have no way of knowing if you’re likely to keep up with your payments or if your a high risk borrower. That alone and be a mark against you.

A bad credit history typically reflects a history of financial difficulties, including:

  • Late or missed payments
  • Exceeding your credit limit
  • County Court Judgements
  • Bankruptcy

Short Term Loans for Bad Credit Borrowers

At Bad Credit Loans we understand that financial emergencies can happen to anyone, regardless of credit history. Short term loans for people with bad credit can help to relieve some of the stress, both financial and emotional, that comes with sudden unplanned expenses.

A bad credit short term loan is, at its most basic, simply a loan with a tightly structured repayment period. These small loans are designed to be paid off, with interest, within a short period of time. Repayment periods for short term loans are typically well under 12 months.

Short term loans include so-called payday loans which require borrowers to repay their loan within a matter of weeks (typically when they receive their next pay cheque) as well as small loans with a repayment period of a few months. These small loans help to address the specific finance needs of borrowers with poor credit ratings.

Are Short Term Bad Credit Loans More Expensive?

Unfortunately, a poor credit history (regardless of circumstances) technically classes the borrower as a high risk customer. In order to agree to the loan lenders will need to charge more for their loan products. So any short term loan for a customer with bad credit will almost always include higher interest rates than a loan for someone with a sterling credit rating.

However, short term loans for people with bad credit fill an important finance need in the UK. They provide much needed finance options for many people and, in the long run, can actually help borrowers to rebuild their credit histories.

How much would you like to borrow?

Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum loan length is 1 month. Maximum loan length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).

What Kind of Lending Options are Available?

Even if your credit history is less than stellar you should still have access to the funds you need in an emergency. When it comes to short term loans for bad credit there are three basic lending opportunities:

  • Peer-to-Peer Lending – Also known as P2P loans peer-to-peer loans are funded by individual investors who underwrite personal loans as an investment opportunity. These types of loans benefit both parties. The borrower receives the funds they need while the lender earns interest on the amount loaned.
  • Secured Loans – Secured loans require the borrower to put forward personal assets as a security for the loan amount. These loans are often easier to obtain because the collateral lowers the perceived risk for the lender.
    Secured loans often allow the borrower to secure a lower interest rate than other loan products. However, the risk can be greater. If the borrower defaults on the loan the lender has the right to seize the collateral assets.
  • Guarantor Loans – Guarantor loans do not require any assets to be offered as collateral in order to secure the short term loan. However, the borrower will need someone to co-sign the loan application. The co-signer is typically a family member or close friend. The co-signer assumes responsibility for the loan in the even the borrower defaults.

What are the Advantages of Bad Credit Short Term Loans?

In a financial emergency you may need to access cash as quickly as possible. If your credit history poor, or even nonexistent, a short term bad credit loan can get you the funding you need. The application process is easy and most customers will receive a loan determination almost immediately.

The benefits of a short term loan for people with bad credit are obvious:

  • Short Repayment Periods – The average repayment period of short term bad credit loans is 1 to 12 months. This helps borrowers avoid long term financial burdens.
  • Bad Credit is Not a Barrier – Short term loans are available to everyone regardless of credit history. Bad credit, or no credit, is not necessarily a barrier to approval.
  • Easy Online Application – At Bad Credit Loans we keep out application process easy and convenient. Simply complete the online and form to submit your loan request.
  • Quick Approval Times – All applications are reviewed in real time. If your loan application is approved you will instantly receive a loan offer to consider.
  • Fast Access to Cash – If you accept your personal loan offer our lenders can typically make funds available on the same day.
  • Improve Your Credit Rating – Short term loans can be a powerful tool when used to build, or rebuild, your credit rating. Responsibly managing your loan can borrowers rehabilitate their credit histories.

Why Use Us

  • PCAW Approved
  • £100 - £5,000
  • Instant Transfer
  • Same Day Cash
  • Direct Lenders
  • Flexible Terms
  • Reputable Lenders
  • No Guarantor
  • 1 - 36 Months
  • 98% Approved
  • Fast Application
  • No Paperwork
  • UK Service
  • 24/7 Support
  • Quick Decision
  • Bad Credit OK
  • Easy Repayments
  • No Hidden Fees

What are the Disadvantages of a Bad Credit Short Term Loan?

Short term loan offers bad credit borrowers valuable financial stability. However, they are not without risk. It is important that borrowers are aware of the restrictions that come with bad credit short term loans:

  • Smaller Loan Limits – Bad credit loans typically provide smaller cash sums to borrowers.
  • Higher Interest Rates – Bad credit borrowers are typically considered higher risk. To offset that risk lender will attach higher interest rates and lending charges to the loan.
  • Guarantors May be Required – For some borrowers with poor credit a guarantor, or co-signer, may be required to secure the desired loan amount.

Are You Eligible for Short Term Bad Credit Loans?

At Bad Credit Loans we accept applications from any UK citizen over the age of 18. In addition to being a UK citizen applicants must demonstrate their ability to repay any loan based on their current financial profile. Applicants will be required to provide accurate information concerning their current income as well as any and all outstanding debt.

In summary, to be eligible for short term bad credit loans applicants should be:

  • Permanent residents of the United Kingdom
  • Over the age of 18
  • Currently employed with a regular income

Any loan comes with risks. Before you commit to accepting a short term loan offer carefully consider your ability to repay the loan in accordance with the terms set out by the lender. Defaulting on any loan can adversely impact your credit rating making it even more difficult to secure funds in the future.

Advice on Debt and Financial Management

Short term loans for people with bad credit can offer the financial flexibility you need in times of emergency. However, they may not always be the best option. Consider your financial situation carefully and be sure you understand your rights and responsibilities as a borrower before committing to any loan agreement.

To learn more about sensible money management visit Money Helper, a UK government resource designed to help people manage their finances effectively and responsibly. For those currently struggling with existing debt, or who may be finding it difficult to keep up with the repayment of any outstanding loans, you can refer to the National Debt Line. These services are free to the public and are designed to help UK residents manage their debt and take control of their financial futures.

Apply Now

Simply select how much you'd like to borrow and for how long:

Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum loan length is 1 month. Maximum loan length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).