Cashlady speaking to people on the street regarding financial emergencies

Bad Credit Payday Loans

If you are looking for a small, short term loan but suffer from bad credit, rest assured you are not alone.

Every day, thousands of people search the internet for short term credit solutions designed for people with an adverse credit history.

Discover your bad credit loan options with CashLady - Apply here
Bad credit payday loans for any purpose

Warning: Late repayment can cause you
serious money problems. For help, go to

Representative Example: Amount borrowed: £250 for 3 months.Number of repayments: 3.Interest rate p/a: 292% (fixed).Each repayment amount: £137.21.Total repayable: £411.63. APR 1272% Representative

The first question you should ask when considering any form of bad credit loan is: "Can I afford to repay my borrowing in full and on time?"

If the answer is yes and you are looking for a bad credit payday loan today, you can apply now with CashLady, using our secure online application form

What is a bad credit payday loan?

A bad credit payday loan is a small, short term loan designed to help customers overcome unexpected financial emergencies.

The interest charged on a bad credit payday loan can differ from lender to lender (as can the representative APR) but the FCA caps on fees and charges for always apply. This means that you should never pay more than £24 per month for every £100 borrowed and never more than double to original amount borrowed.

You may still be suitable for a payday loan. Even if you have poor credit

Bad Credit Payday loans are designed to meet urgent cash needs. They are one of the few short-term loan products available to people with an adverse credit history.

If you take out any form of short term credit, It is critical that you always borrow within your means and repay your loan commitments on time.

Bad credit loans - direct lender?

Bad credit loans should always be approved and issued from an FCA authorised direct lender. As a customer you have the option of making a loan application direct or through a credit broker like CashLady.

If you feel confident in your credit profile and believe you should be approved by most bad credit lending specialists, you may find it useful to research the marketplace and compare the various options available. It is important to look beyond the money and take things like customer service into account.

Fortunately, most direct lenders provide 3rd party customer reviews to help you make the right decision

Be aware that if your loan application is unsuccessful, you will need to start the process from the beginning and look for another direct lending option.

Using a regulated credit broker can help to alleviate the challenges of finding a suitable loan provider quickly and efficiently.

Below is a list of the bad credit loan partners we actively work with. All are established FCA regulated lenders for your peace of mind:

Lender Rep APR
Wageday Advance 1201.40%
Lending Stream 1325%
Sunny 1277%
Quick Quid 1295.50%
Satsuma 991%
Ferratum 1604%
Mr Lender 1256.5%
Safety Net Credit 68.70%
MyJar 788%
118 Money 99.90%
H&T 446.90%

watch the video understand badcredit payday loans

Why consider CashLady for my bad credit loan?

At CashLady we have a dedicated panel of FCA approved short-term credit providers, many of which may be able to lend you funds in an emergency, even if you have a poor credit history.

Applying for a payday loan with is completely free of charge. We will never charge you a fee for using our service.

When you apply for a loan with it means your application will be instantly seen by our panel of trusted lenders. As a borrower, this can mean more credit options and importantly, a higher chance of your bad credit loan application being approved.

Since 2007, We have helped more than 3 million people apply for short term loans and today we are proud to serve many thousands of customers applying for short term credit.

Bad credit loans could be used in an emergency

It is important to remember that not everybody who applies for a bad credit loan will be accepted. Payday finance is simply a loan product that can often help people when other types of lender may have turned them down due to their poor credit history.

As with any type of personal loan, responsible borrowing is important. You must be able to repay your loan commitments in full and on time. Doing so will help you avoid building up a cycle of debt, sometimes referred to as a spiral of debt or a debt trap.

What is bad credit?

Bad Credit is a term often used to describe the financial situation of somebody with a history of poor financial management or circumstances. People who have an adverse credit score are likely to have missed credit obligations (such as a loan, utility bill, or credit card)

Essentially bad or ‘adverse’ credit is the main reason why some borrowers find it difficult to obtain finance.

By definition, bad credit is an indication that suggests one borrower is riskier than another.

Although a poor credit score could be the result of financial mistakes made in the past, it can also be the result of not having any borrowing history. Either way, a history of bad credit can often be an obstacle to obtaining a personal loan.

Advantages of a bad credit loan

What are the advantages of bad credit payday loans?

  • Payday loans for bad credit are often available when you cannot get help elsewhere. They could be the difference between losing use of your car and being able pay for those emergency repairs.

  • The application process is relatively non-intrusive. You will unlikely need to reveal much detail about what you need the money for.

  • Payday loans are unsecured loans. If you cannot pay them off in time then you are likely to be subject to further charges. The credit provided won’t be secured against your house or car though. This means if you miss a payment you won’t risk losing a valuable possession, although there could be other financial consequences.

  • Applications can be completed online for speed and efficiency.

  • With some personal loans, you are tied into repayments for months (and even years). With a payday loan, your commitment will be over as soon as your short-term loan is repaid. You won’t have an ongoing commitment to pay back what you owe over many months.

  • Payday loans are for relatively small amounts of money. This means that you should not need to borrow more than you need. These small loans should be just enough to help you through a financial emergency. Smaller cash loans means there is less temptation to spend excess funds and also keeps the cost of borrowing to a minimum.

CashLady discuss the disadvantages of a bad credit loan

What are the disadvantages of a payday loan for bad credit?

  • Our top ‘advantage’ also features here. Payday loan are often available to consumers that might have applications rejected elsewhere. This can make a loan tempting in non-emergency situations. Rejections from other loan providers might force you to reconsider whether you really need or afford what you were planning to buy. Short term loans should be seen as emergency funds. Used them only when you know how you’ll pay the money back. It would be wrong to treat them as a handy alternative to a traditional long-term loan.

  • Payday loans usually come with a higher APR than other types of personal finance. They are high-interest loans designed for short term needs can seem expensive when compared to more mainstream borrowing. There are now restrictions and price caps in place to protect consumers, but it is always wise to be aware of exactly how much you’ll be paying in total.

  • The definition of a ‘payday loan’ states that it should be there to bridge the gap between your next pay cheque. As a result, you won’t have long to pay back what you owe. The traditional payday loan duration is anywhere up to 31 days. However in recent times, many lenders offer short term loan terms up to 6 months in length (although these can usually be repaid at any time without the worry of additional fees or charges).

Frequently asked questions

  • Will a poor credit history affect my chances of obtaining a payday loan?
    The answer in most cases is ‘yes’. But it does not mean your loan application will fail. This is where we can help because we submit your application to many lenders. Affordability will be based on your current financial circumstances and behaviour. It is also one of the best reasons to use a licenced credit broker. An FCA authorised short term credit broker (like us) could give you with a better chance of obtaining the finance you need. Especially if your credit rating is a concern.

    Bad credit history is an important factor in ledning decisions

  • Does it matter how bad my credit is?
    Your unique credit score will be an important factor in lending decisions. If your credit score is particularly low, it may prevent you from obtaining any kind of finance. This is because lenders assess the risks associated with providing money. If you have a long history of missed payments, it could be a preventative indicator. To get a better understanding of your credit report why not try a free credit reporting website such as noddle. The better your credit score, the better your chances are.

  • Does taking out a payday loan imply bad credit?
    Not necessarily, although we do find they are often applied for by to those with lower credit ratings. Most lenders will take this into consideration.

You can read more on how to avoid bad credit in the UK and our special guide about what is your credit score.

If you want more information about how to rebuild your credit rating, we created a series which should give you plenty of useful information.

Affordability is key to obtaining a bad credit loan

As of 2016, loan affordability is of huge importance. This is because of new rulings and stricter regulation from the Financial Conduct Authority. A short term loan provider must lend responsibly and only to those who can comfortably afford to repay the loan.

In the past, some payday loan companies have had a reputation for lending to people with poor credit. The determining factor for approving loan applications today is affordability. The key thing to remember is that you must always borrow within your means.

These legislative changes have meant a more ethical approach to funding bad credit loan applications. Regulated lenders must take a more responsible approach when assessing an individual’s financial circumstances. In doing so, consumers are less likely to take out loans they cannot afford and lenders can reduce the level of bad debt they are exposed to.

Make sure you can repay your bad credit loan in full and on time.

What are the differences with payday loans for bad credit?

Bad credit payday loans are usually designed for people who have had a repayment issue in the past. Often they are available from specialist lenders who look at more than just credit history.

When you apply for a loan with CashLady, our lenders will use the information disclosed on your application form to form a decision.

Some lenders are more versed at dealing with customers who have an adverse credit history and may need to have a much more investigative approach in their assessment of you.

Adverse credit loans are for people who made bad financial decisions in the past

The good news is that many lenders are able to offer more loans to adverse credit applicants than others, due to their unique customer assessments, data modelling and lending criteria.

You may find that the APR on your loan differs from the representative APR you see on their website. If in doubt, ask questions of the lender to understand your loan offer thoroughly, before you sign any commitments.

If I apply for a bad credit loan, will it affect my credit rating?

Applications for loans, whether they are accepted or rejected, will usually leave a footprint on your credit file. If you already have a bad history with credit, further credit searches could make your situation even worse. Multiple footprints on a credit file can indicate to lenders that you are unable to manage your finances effectively.

Making multiple loan applications in quick succession can damage your credit file. It is recommended that you don’t move on from one lender to another.

When you complete a loan application with a direct lender, you have no way of knowing if you will be approved or not until they have conducted the necessary affordability checks and credit searches.

If you are declined by one lender, you will need to repeat the process with another lender. This could lead to never ending cycle of loan applications until you find a lender that is happy to lend you the money you need.

Multiple loan applications can damage your credit file

Should I use a credit broker?

This is where a licenced credit broker (such as CashLady) can be an effective solutions. An online loan broker will usually have a panel of lenders to choose from and a single application form is required to submit your details to some, or all of them.

Because brokers filter applications based on criteria, they can show your application to the lenders who are more likely interested in working with you.

Importantly, no credit searches are conducted at this stage, meaning you do not have to worry about multiple credit searches appearing on your credit file and reducing your credit score.

How likely is it that my payday loan application will be approved?

Getting your payday loan application approved depends very much on your specific circumstances. To begin with, you should be:

  • In full employment
  • Over 18
  • UK resident

Also in most cases, you will need to take home more than £500 from your employment.

Any provider of bad credit finance has to make sure that the loan is affordable to you. They will look at your earnings and subtracts all your expenses. These include rent/mortgage, utilities, transport, food, credit expenses and any other recurring expense. The amount remaining needs to be enough for you to be able to repay your loan.

Since the FCA changed the HCSTC market with strict regulations to protect the consumer, the short term lending industry approve fewer applications.

In the past, Wonga proudly advertised high acceptance rate as a selling point. Now, they reject more than 80% of loan applications.

There are still many loan companies that mention high acceptance rates in their advertising. They do so to appeal to borrowers with poor credit ratings. Strict regulations from the FCA are in place to protect customers from irresponsible lending.

Alternatives to bad credit payday loans

If you are looking for other options to a payday finance, Here are some suggestions.

sidepiece Guarantor loans

If you cannot get a conventional unsecured loan you might be able to persuade someone to act as a guarantor. A guarantor is somebody who will be liable for your loan obligations if you are unable to pay the money yourself.

To discover more about guarantor loans, read our in depth series for Guarantor Loans.

Some alternative loan products for bad credit payday loans

sidepiece Secured loans

A secured loan is a loan secured against an asset – usually a car or house if it is a larger loan, although pawnbrokers offer secured funds against smaller items. A secured loan does carry some risk of losing that asset if you’re unable to make your repayments in time. Interest rates can still be quite high.

sidepiece Peer to Peer/ Social lending sites

These new sites allow people to lend directly to each other. They often offer better terms and are open to more people than conventional banks. Even so, if your credit score is particularly bad you might still have difficulty being accepted.

sidepiece Credit unions

These are clubs which offer loans to members at affordable rates. This type of lending can be a more affordable option than a payday loan if you can access one. There are approximately 500 credit unions in the UK, but not everybody is eligible to join one. Check online to see which unions are near you and if you are eligible for membership.

For a complete list of alternatives – see our guide to Payday Loan Alternatives.

How to find the best bad credit payday loan option for you

If you are currently looking at the options available, you should tread carefully and exercise some restraint.

Make sure you know what you are taking the loan out for and how you are going to pay the money back.

Interest rates for short term loans can be extremely high, so make sure you have a clear plan in place to avoid things getting out of your control.

Inevitably, a payday loan will be more expensive than conventional loan options. But there are benefits to having a short term loan that is easily (and quickly) paid back.

Shop around and look at the various lenders available to ensure you get the best deal.

Alternatively, consider using a non fee charging broker (Like CashLady) to do the work for you and save you time and hassle.

As a payday loan broker Cashlady don't charge any fees

How payday loans for people with adverse credit can help

This is where short term finance solutions for people with less than perfect credit histories could come in useful. Some creditors may be able accept applications depending on many considerations. They key factor is your ability to repay the loan.

Even if you’ve made mistakes with your finances in the past you might still be a good match for payday loan products. We work with lenders that will consider your loan application based on many factors.

You will still have to pass the basic criteria requirements. You need to be 18 years old and you must be UK resident with a UK bank account into which salary is paid.

It’s important to note that payday loans are designed to be responsibly borrowed and repaid. This is why you must be employed to get one.

Worried about your bad credit history?

Are you concerned that you may not be accepted for a loan because of your bad credit history?

Millions of people across the UK have experienced some financial difficulties in their lives. If these challenges have meant you have been unable to keep up with your financial obligations (credit card, loans, unauthorised overdrafts) you may find applying for credit a stressful period

At CashLady our free service allows customers to apply online for small bad credit loans without having to go through hard credit checks (there are the credit checks that stay on your file and are visible

to lenders in the future assessing your creditworthiness

Although you will likely need to have a ‘hard’ credit check before any loan is approved, it can help you identify the lender most likely to help you when your credit score isn’t as high as you would like it to be.

Many lenders have their own alternative scoring systems which mean they may approve you if you have a bad credit history. Just spend a few minutes completing the application form to find out. There is no obligation and you may be surprised at the outcome.

How to re-build your credit history

Making regular on-time credit repayments (loans, overdraft or credit cards) may help to improve your credit score over time as your financial activity is reported back to the various credit reference agencies. It is crucial that you maintain consistent good behaviour if you want to build up your credit score as any missed payments could have a negative impact on your credit score and make it difficult to borrow again in the future.

To find out more about improving your credit score - read our series of helpful guides on rebuilding credit.

Applying through cashlady takes only 5 minutes

Are there any bad credit loans with no credit checks?

Lenders are obliged to check your ability to repay the loan in many forms sufficient to satisfy affordability. This may in involve a credit check so you can’t avoid being credit checked.

For alternatives and to find out more read payday loans no credit checks.

Summary: Payday loans for people with a poor credit rating

If you need to borrow money for any reason, but are unfortunate enough to have an adverse credit history, a bad credit loan can be very beneficial.

A payday loan is designed for emergency borrowing and if your credit history is preventing you from accessing other types of personal finance, this option may be the only avenue available.

Always be aware of what you are signing up for and how you’re going to fulfil your financial commitments. If you take out a loan and do not pay it back, it will further impact your credit score and may prevent you even more in the future.

If your credit history is not great and you have a poor credit score, you should look to see what options are available to you so you can start to repair your credit score.

Not only will a better credit score help you obtain finance in the future, it should also help bring the cost of borrowing down.

If you are able to pay back your loan repayments each month, you may start to see your credit score rise. This can mean better loan offers in the future (with more competitive APR’s) or even access to more mainstream loan products.


Short Term Loan Charges

Loan Amount (£):  

I have read and accept CashLady's
  Privacy Policy and Website Terms
I wish to opt in to SMS, telephone and email marketing.
Representative 1272% APR
Representative Example
Amount borrowed: £250 for 3 months
Number of repayments: 3
Interest rate p/a: 292% (fixed)
Each repayment amount: £137.21
Total amount repayable: £411.63
Secured By Comodo EV SSL CFA logo
Bad Credit Information
Good loan companies for bad credit
How to get bad credit loans
Where to get bad credit loans
What are bad credit loans?
How to judge the safety of bad credit loans
Best credit cards for bad credit
Guide to bad credit debt consolidation
Are bad credit loans ethical?
Choosing a bad credit mortgage broker
Bad credit business loans

Customer Satisfaction and Reviews

CashLady is rated 4.5 stars by and Smart Money People based on 1827 merchant reviews is a credit brokerage website owned and operated by Money Gap Limited. We are not a lender and do not provide credit to consumers. If you make an application through this site it will be shown to a selection of UK based lending partners for careful consideration. Applicants must be 18 years or over and approval is subject to status. We will never charge a fee for our service, but do receive a commission from lenders following successful introductions originating from this website. Any information we provide is for the strict purpose of illustrating the lending process only and does not constitute any form or financial or legal advice.

Money Gap Limited is a company registered in England and Wales with company number 6617413.
Registered Office: 89 New Bond Street, London W1S 1DA. Correspondence address: 14 Grays Inn Rd, London WC1X 8HN. Authorised and regulated by the Financial Conduct Authority. You can find us on the FCA Register with Reference number 726151. Data Protection Registration Number Z1696368. is a trademark and trading name of Money Gap Limited. Copyright ©2018 Money Gap Limited. All Rights Reserved.