Short Term Loans for Bad Credit

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  • Borrow up to £5,000

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  • Bad Credit Accepted

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  • Representative Example: Rates from 35.9% APR to max 1304% APR. Minimum Loan Length is 3 months. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 3 months. Total amount repayable is £411.63 in 3 monthly instalments of £137.21. Interest charged is £161.63, annual interest rate of 292% (fixed). Representative 1192% APR (variable). *HappyPenguin will not perform a credit check but lenders will determine your loan eligibility by performing a soft search. If you accept the loan offer presented to you, a hard credit search will be performed.

    Your Guide to Short Term Loans for Bad Credit

    It’s difficult to prepare for every financial emergency you might encounter in your life. Even if you’re relatively good at living a frugal lifestyle, something as simple as a broken-down car or a problem with your boiler could leave you in a tight spot. If you’re not lucky enough to have a friend or family member who can bail you out of trouble, your best bet might be to look for a loan that you can use to keep you on your feet until payday.

    Of course, if you don’t have the best credit rating, you’ll know first-hand just how difficult it can be to earn approval for the cash you so desperately need. Even typical short-term and payday loan lenders may avoid people with a poor credit history.

    The good news is that there are lenders out there that specialise in helping people with a questionable background. These loan providers realise that just because someone had difficulty with money in their past, doesn’t necessarily mean they can’t be trusted now.
    These loans give you a quick and easy source of capital when you need to get your life back on track as fast as possible. Here’s what you need to know about this kind of lending solution.

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    What Are SThey?

    They aren’t just personal loans that you can take out for shorter periods. These unique lending options are designed specifically for emergencies. Otherwise known as online loans for bad credit, short term loans offer support when you can’t afford to wait around for months before you can access a cash advance. They’re ideal for people who need money quickly, and they don’t ask you to jump through countless hoops for approval.

    Fortunately, the world of short-term loans has evolved in recent years. You can now borrow anywhere up to a few thousand pounds from some provider, and you may be able to stretch the term of your loan over several months. This gives you more time to repay the money you borrow if you need to collect money from more than just your next payday.

    If you’re wondering whether you’re suited to a short term loan for bad credit, ask yourself how your credit history looks right now. You can always check your credit report with a free service to double check your rating. Remember, don’t use a service that leaves a mark on your file, as this can reduce your chance of getting the money you need.

    If you have a file with a history of missed or late payments, then you may need a short term loan for bad credit. You can also benefit from this kind of ending if you’ve had a county court judgement or CCJ to deal with in the past. When your background would stop you from being successfully approved for traditional payday loans and short term cash advances, bad-credit providers step in.

    These specialist lenders and brokers are extra sympathetic to people who have a history of financial difficulties. With these kinds of lenders, you don’t have to worry about the risk of potentially making your credit history worse by applying for loans that you won’t be able to get.

    How Do People End Up with Bad Credit?

    When you apply for a loan from any provider, including a credit union or a bank, most companies will check your credit score. This score gives lenders insight into the relationship you’ve had with money over the years. If you ever defaulted on a payment, or you failed to pay the money you owed lenders on time, then that information will show up on your credit report.

    When people have good credit, they often find it’s much easier to successfully apply for the financial support they need. Whether you need a mortgage deal, a car finance loan, or just a personal cash advance, lenders will be willing to give you a better interest rate, and often better terms. However, if you have bad credit, then your chances of getting access to borrowed money begin to suffer.

    If a lender sees that you have bad credit, then they won’t feel comfortable giving you a good deal on your loan. The more risk a lender needs to take by giving money to you, the higher your interest rates and fees become. In fact, in some cases, lenders will refuse to provide you with the money you need altogether because they’re concerned, they won’t get the capital back.

    You can end up with bad credit caused by bankruptcy, poor spending habits, maxing out your credit cards, and more. While it’s straightforward to damage your credit, repairing it takes a lot of time and effort. It may take years before your credit score is up to par again. Of course, if you’re facing a financial emergency, you don’t have that kind of time.

    These loans were designed to give people with poor credit a way out of a tight spot when they need it most. They ensure that you don’t lose your opportunity to fix financial problems just because you had money issues in the past.

    How Does Happy Penguin Compare?

    Why Use HP?
    What's the max loan amount?
    Up to £5,000
    No hidden fees.
    Is approval instant?
    Yes, immediate.
    On Screen Decision
    Poor Credit Possible?
    Yes. Bad credit too.
    All considered.
    Same day transfer?
    Within the hour!
    Direct to bank!
    Flexible Repayment Dates?
    Flexible terms.
    Quick and easy.

    Is Thin Credit the Same as Bad Credit?

    If you’ve never checked your credit history before, because you’ve never taken out a loan, or worried about capital, then you may still have problems getting a cash advance. To find a credit score, you’ll need to get a report from the credit reference agencies Equifax, Experian, and TransUnion. In some circumstances, the reports held by each agency will differ. It may help to look at your report from each different provider.

    Remember, though there are websites out there that can give you the details on your credit score, not all of them are alike. Some will perform a “hard” credit check, which leaves a mark on your file. This isn’t something you want when you’re already worried about your score. The more marks on your record, the more reluctant lenders will be to give you money.

    When you’re checking your credit history, you may find that although your credit rating isn’t terrible, it isn’t good either. This is usually the case for people who haven’t taken any loans out in the past. While it’s easy to assume that all loans are bad, the truth is that having some credit history is often better for you in the long term. If you’ve never taken out a loan before, then lenders won’t be able to see whether you’re a reliable lender.

    Although a thin credit file doesn’t automatically mean that you’re a risk to credit unions and banks, it could mean that you also have to apply for bad credit loans in some cases. Thin credit files make it difficult for you to access the best fees and interest rates offered by banks. Additionally, you may not be eligible for certain short-term loans.

    How Do Short Term Loans for Bad Credit Work?

    When you need money fast, theyt can be an excellent source of support and assistance. However, even for people without bad credit, they have a lot of value to offer. They ensure that you can get rid of your debt as quickly as possible, which is a great thing for people who want to build up their credit rating fast. What’s more, applying for a short term loan with bad credit is easier than you might think too.

    The first thing you need to remember is that these loans are specifically intended for people with poor credit histories. That means that you won’t have to worry as much about jumping through hoops as you would if you were applying for a loan from a regular provider. Additionally, there are often fewer questions to answer with short term loans for bad credit. Most providers know that the people accessing these cash advances need money fast. As such, they won’t make you spend days waiting for forms to be processed.

    A number of loans available today can be applied for online. In this case, all you’ll need to do is enter the amount of money that you need to borrow and choose a term length. The term length indicates how long you’ll have to repay the money that you borrow from your bank or payday loan company. Terms can range from a few days to a few months depending on who you borrow from.

    Make sure that you check out all the details on the lender’s website to ensure that they’re compliant with the rules of the Financial Conduct Authority before you submit your application. One piece of good news is that most short term loan providers that specialise in people with bad credit will not focus on your credit history when deciding whether to give you the money you ask for. However, they may still perform a soft credit check to get an idea of your relationship with money today. A lender that performs a credit check can be a good sign – as this indicates that they’re taking your ability to repay the loan seriously.

    Your lender may also ask you for details about your current income and expenses. This will help them to see how much money you have to put into the loan repayments each month.

    What to Look at When Getting a Short Term Loan

    When you’ve entered your details, you should be able to see an overview of how much your loan is going to cost you. Remember, the Financial Conduct Authority (FCA) in the UK has placed a cap on the total amount of interest and fees you should pay with any payday loan. This means that when you’re applying for a short-term loan – even when you have poor credit, you shouldn’t need to pay more than £24 in interest for every £100 borrowed.

    While there can be additional fees to consider, some of these are capped as well. For instance, if you’re late making a repayment for any reason, your provider will only be able to charge you a fee of £15 at most. Although all short-term lenders for people with bad credit are governed by the same FCA standards, different providers can offer unique deals. With that in mind, it makes sense to check out all of your options using a comparison website.

    Many lenders make the mistake of automatically accepting an offer for credit from any provider that is willing to offer one. Unfortunately, this can mean that you end up paying more in interest than you need to. When you compare your options, remember to look at:

    • How much money you can borrow: Some loans for bad credit can offer more money than others. If you need to borrow a larger-than-usual amount like £2,500, you may need to spend longer looking for a lender than if you were trying to borrow £500.
    • The terms you can choose: Ideally, the faster you can pay off your payday loan, the better off you’ll be. However, to make your life a bit easier, you might decide to spread your repayments out over a few months. To do this, you’ll need to make sure that you know what kind of terms your provider can offer.
    • Additional fees: There are various additional fees that can appear in some short-term loans which can help you decide who to borrow from. These fees might include expenses for late payments, and “set up” costs.
    • Reviews and testimonials: It’s important to know what kind of service you’re going to get from your cash provider. Make sure that you check out any reviews you can find online to see what other people think about the business you’re thinking of working with.
    • Ethics and FCA compliance: Make sure that the company you choose to borrow from complies with the standards laid out by the financial conduct authority. This will protect you from any bad loan experiences.
    • Additional deals: Some short term loan providers will be able to offer special deals to people who are new to their services.

    Can You Improve Your Credit Rating?

    If you need money fast, then you won’t have time to spend months building up your credit score. Short term loans for bad credit will give you the extra support you need to ensure that you don’t get into more financial trouble. They can also make your life a lot easier by ensuring that you don’t’ end up defaulting on payments or going into an expensive overdraft.

    However, after you’ve finished paying off your short-term loan, you might decide that you want to start working on your credit rating. There are various steps that you can take to improve your score. Even taking out a short term loan in the first place can help to increase your credit rating. Although it’s probably not a good idea to take out a loan just to boost your credit, a short-term loan for bad credit serves an essential purpose with your credit history.

    When you pay back the money that you borrow on time, and according to the guidelines of the lending institution, you show that you can be trusted with money. This instantly sends your credit score trending upwards. Aside from taking out a loan, some of the other things you can do to improve your rating include:

    • Registering on the electoral roll: When you register on the electoral roll with your current address, this ensures that you can begin developing your credit score.
    • Check your score regularly: Make sure that you keep an eye on your rating with tools that perform “soft” checks. This will help you to pinpoint any errors in your history that could be stopping you from getting better terms and deals on your loans.
    • Update your information: Remember to check that your information is correct. Whenever you start a new direct debit or move to a new house, you’ll need to ensure that all of your information is current with the credit authorities.
    • Set up direct debits: Setting up direct debit payments for things like your mortgage or smartphone bill shows the credit agencies that you’re committed to paying your debts on time each month. It’s also an easy way to make sure that you don’t get into trouble because you’ve forgotten to pay for something.
    • Avoid paying for loans you won’t get: If you know that you have bad credit, then avoid applying for loans for people designed with better ratings. Although it’s tempting to seek out the best deals on your loans, a rejection in your file can linger and drag your credit report down even further.

    Of course, above all else, the best way to transform your credit history is to make sure that you always strive to pay your bills on time. If you never default on your loans and make sure that you’re still following the rules of any loans that you take out, you’ll begin to earn the trust of the credit authorities. Remember that missed repayments can stay on your file for up to 7 years at a time. The more careful you are with your money, the better off you’ll be.

    How to Be Approved for a Short Term Loan

    Bad credit short-term loans aren’t just a “last resort” when you’re in need of money fast. There are numerous benefits to taking out this kind of cash advance. First and foremost, you can get a second chance when bad credit has been holding you back. With your short-term loan, you get in and out of debt very quickly, showing the credit agencies that you know how to manage your money. This can make it easier to begin building your credit score again.

    Additionally, all short-term loans are designed to be quick and easy to apply for. This means that you don’t have to waste hours filling out forms, or days waiting for a response. Many of the short term loans for bad credit that are available online can deliver money to your bank account within 24 hours or less. When you’re facing an emergency, this speed can be critical.

    Of course, as with any loan, it’s important to remember that there are a few restrictions on who will be able to apply for a short term loan with bad credit. For instance, you’ll need to be at least eighteen years old and a resident of the United Kingdom to apply. You’ll also have to show the lender that you choose that you have a consistent form of income.

    If you want to make sure that you can improve your chances of being approved for a short term loan, visit the credit company that you’re hoping to borrow from. You should be able to find information on their website about the information you’ll need to fill out an application.

    Should You Get a Short-Term Bad Credit Loan?

    While no loan type is right for everyone, there are certainly benefits to short term loans for bad credit applicants. From a quick and easy application process to the ability to get money when you need it most, these cash advances can offer an excellent opportunity to a wide range of people. You may not even have to tell your lender why you’re borrowing the money when you’re filling out your application. This means that you spend less time filling out forms, and more time getting yourself back on your feet.

    Although terms like payday loan have had a complicated history, it’s important to remember that the regulation of the financial conduct authority ensures that all short-term loans are just as safe as any other lending opportunity today. Just like any other loan, as long as you do your homework and make sure that you’re getting the right deal, you shouldn’t have any problems.

    Get comparing your loan options today.