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Best 8 Payday Loans for Bad Credit For 2019 in UK

05. January 2020

When an emergency strikes that calls for urgent cash but you suffer a poor credit history, your options for obtaining credit services grow narrower.

Banks and other lending institutions won’t advance you the much-needed cash even after taking you through the long and unhealthy loan application processes. So who do you turn to, especially in the case of time-sensitive emergencies? The online-based payday loans direct lenders or their loaning apps counterparts.

These help you sort your emergencies by advancing you the cash within the shortest time possible – as little as 15 minutes – on the promise that you will repay as soon as your next salary comes in. Unlike high-street banks, these don’t shy away from lending you cash because of a poor credit score.

They will even help you build or rebuild it by submitting information about your timely payments to the credit reference bureaus. And while some still pull your credit score to determine the interest rate for the advanced amounts, some don’t consider it.

You will, however, note that they are a bit stringent with their loan repayment terms. For instance, they will have higher representative Annual Percentage Rates (APRs) compared to your bank, shorter grace period to repayments, and high roll-over or late payment fees. Some may demand that you grant them a Continuous Payment Authorization (CPA) that allows them to deduct their dues directly from your bank account. You are nonetheless protected by the FCA that ensures you don’t pay more than £24 per month on every £100 borrowed or double the loaned amounts.

Try Our Recommended UK Payday Loan Provider 2020:

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*Subject to lender requirements and approval.

Table of Contents

    What is the process of applying for payday loans?

    Step 1: Visit a payday loan lender online, at their store or call them

    Step 2: Apply for the loan by providing the lender with such information as your bank details, contact information, employment status and details, contact information for your references

    Step 3: Agree to the terms of the loan and repayment period

    Step 4: The lender gives you a check for the loan amount or deposits it into your account

    Step 5: You repay the amount upon receiving your salary or ask for a rollover and pay the rollover fees

    What are the pros and cons of payday loans for bad credit?


    • They help sort your finances when no one else is willing to help
    • Have a relatively non-intrusive application process
    • Speedy and wholly online loan processing
    • No credit check and may help improve your credit score
    • Doesn’t require security or collateral
    • Short term repayment doesn’t tie you to a lifetime commitment


    • Carry a higher APR than most other personal loans
    • Have a short grace period to repayment
    • The easy application process and fast processing of payday loans make it tempt you into its misuse by applying it to sort non-emergency situations
    Note: Bad Credit loans come in handy when you are looking for immediate cash to solve a time-sensitive emergency. Plus, by giving you access to credit services and reporting your repayment progress to the different reference bureaus, these bad credit payday lenders help you rebuild your credit score.

    How we ranked the best payday loans for bad credit:

    • Representative APR
    • Maximum loan amounts
    • FCA regulation and reputation
    • Loan processing speeds
    • Other fees and charges
    • Credit score checking
    • Loan repayment period
    • Customer support

    Best payday loans lenders for bad credit:

    1. Uncle Buck – up to £1,000 at 1249.2% APR

    Uncle Buck is not just one of the most established but also a highly reputable payday loan direct lender to individuals with bad credit. Started in 2004, the online-based company will give a first-time borrower up to £1,000 pounds with a friendly and extended repayment period of up to 6 months. The lender is FCA regulated meaning that it abides with the Authority’s loan pricing regulations. It also maintains one of the most straightforward loan application processes where you only need to head over to their website and fill in your details and the required loan amounts. And to qualify for a loan here you will need to be a permanent UK resident above 18 years and in salaried employment. You will also need a salary bank account and you should not be in debt management or have filed for bankruptcy.


    • Fast loan processing – less than 15 minutes
    • No credit score check
    • No loan collateral required
    • Extended repayment periods


    • One may consider their £1,000 maximum lending relatively low
    • High APR
    2. Satsuma – up to £1,000 at 1294.3% APR

    Satsuma makes it to this list not just because of its rich history in the lending business but also due to its flexibility of repayments it awards its clients. Here, you can borrow up to £1,000 and choose a repayment period of between 3 and 12 months. And unlike most payday loan service providers that demand monthly payouts, Satsuma offers you a weekly, monthly, and bulk payment options. It also has an innovative screening platform – SmartCheck – that lets you check the loan approval requirements and confirm if your loan will be approved before you apply. You can complete the entire payday loan for bad credit application online and have the cash deposited to your account within 1 hour after approval and if you repay earlier, the direct lender will discount the interest.


    • Maintains highly flexible loan repayment terms
    • The SmartCheck feature helps you tailor your application for higher chances of approval
    • Lets you save on interest for early repayments


    • Low maximum loan advance
    3. Lending Stream – up to £1,500 at 1333% APR

    The maximum payday loan amounts you will get from Lending Stream if you suffer a bad credit score for your first application is £800. This will, however, improve gradually for every successive application to the direct lender’s £1,500 maximum. Some of the upsides of settling with Lending Stream for your pay loan application include the fact that they have a friendly repayment policy that allows you to repay the borrowed amounts within six months, and you also get to save on interests and all other associated fees if you make early payments. The loan application process is also relatively straightforward and you will have the cash within minutes after loan approval.


    • A straightforward loan application process
    • Overlooks your credit score in assessing your eligibility
    • Friendly and extended loan repayment periods


    • One may consider the £800 maximum loan amounts low
    4. Peachy – up to £1,000 at 947% APR

    We like Peachy because they have some of the lowest interest rates plus they also maintain one of the most extended loan repayment periods. Unlike most payday lenders that call for high repayment amounts and short periods, this FCA regulated direct lending company allows you to stretch the loan repayment period to between 15 days and 12 months. Their loan amounts range from £100 to £1,000 and this amount will be processed within an hour once approved. The loan can be applied online in a seamless 4-step process that starts with filling in your personal details, contact information, employment and then financial details.


    • Friendly and extended loan repayment schedules
    • Fast loan processing and cash transfer
    • Early payments save you interest and associated costs


    • One may consider their £15 fine for late payments relatively high
    5. Quid Market – up to £1,000 at 1297% APR

    A bad credit rating doesn’t stop the highly reputable Quid Market from advancing you a payday loan as the company takes into account more than your credit history in assessing your ability to repay. However, if you are a first-timer seeking funds from Quid Market, note that you will need to be over 23 years, a permanent UK resident and earning over £1,000 per month. And the maximum this will get you is £600 which tends to rise gradually to the company’s £1,000 maximum with every successive payday loan application. Some of the most unique features of Quid Market and their payday loans for bad credit include the fact that they don’t charge a loan application fee and neither do they impose a fine for late payments. Plus you will have between 3 and 6 months to repay this loan.


    • Licensed and regulated by the FCA and operates within the agency’s price protection regulations
    • No fines for late loan repayments
    • Helps you rebuild your credit score by submitting regular reports to the credit reference bureaus


    • The £600 maximum loan may be considered relatively low
    6. On Stride financial – up to £5,000 at 315.4% APR

    On Stride Financials maintains the highest maximum loan amount compared to most other equally reputable payday lending companies that overlook bad credit scores. Here, you can borrow between £150 and £5,000 and be exposed to some of the longest repayment periods of between 6 months and 3 years. The interest rates and monthly repayments amounts for the loan are fixed and agreed upon at the time of making the loan application. Late repayments will, however, attract a fine of £15. The direct lender also maintains flexible loan terms customized to fit every borrower’s needs. For instance, if your pay comes in fortnightly, On Stride financial will adjust the terms to ensure that you submit your dues fortnightly on the payday. Additionally, during loan application, the lender will present you with several options of highly customizable loans to choose from.


    • There are no deposit fees and early loan repayments help you save on interests and other fees
    • Highly flexible loan repayment periods
    • Helps rebuild your credit score by sharing your loan repayment information with the credit reference bureaus


    • While they overlook the credit score, they still maintain a very strict and restrictive loan qualification policies
    7. Sunny – up to £2,500 at 575% APR

    Sunny makes it to our list of best payday loan companies for individuals with bad credit because they maintain some of the lowest fixed interest rates. These currently stand at 16.8% per month with a representative APR of 575%. Here you can apply between £100 and £2,500 and enjoy a flexible payday repayment plan of between 1 and 8 monthly installments. One of the most unique features of this FCA registered and regulated direct lender is that they don’t charge loan application fees and neither do they fine you for late payments. The loan application process is also relatively straightforward and done entirely online 24/7. And successful applicants having the funds deposited into their accounts within fifteen minutes. Sunny also holds regular promotions where they offer payday loans at discounted interest rates and are currently running one such campaign that gets you 30% off the interest charged on a successful payday loan application.


    • If you change your mind within five days and refund the full amount received, you will not be charged any interest rates
    • Helps you rebuild your credit score by submitting your repayment information to the credit reference bureaus
    • Low-interest rates and regular promotions that push it further down


    • High APR
    8. 24-7 Moneybox – up to £800 at 1281.8% APR

    247 Moneybox takes pride in running one of the most transparent payday loans lending service. The loan application process here is relatively fast and straightforward with all loan details laid out. The direct lender, for instance, charges a fixed interest rate of 0.8% per day. This ensures that you have an idea of the loan repayment amounts right from the onset. To apply for the payday loan with 247 Moneybox, you must be an employed permanent UK resident operating a salary account and with a monthly salary of not less than £1,000. With these, the maximum amount you can get with the direct lender as a first-time borrower is capped at £80 that eventually grows to £200 before hitting the maximum allowed by the company of £800. The loan application and repayment are done purely online. You stand to benefit from saved interest rates and associated fees if you pay off your loan early or suffer a £15 fine for late repayments.


    • Pure transparency reduces instances of hidden fees
    • Relatively attractive interest rates
    • FCA regulated ensuring that your loans are protected from unnecessary charges


    • One may consider their £80 for new loan applicants restrictively low

    How can you increase your chances of getting approved for payday loans with bad credit?

    I. Only apply to loans you meet the qualifying criteria for

    The surest way of maximizing the possibility of having your bad credit payday loan being approved is applying to loans that you qualify for. After settling on one or a host of payday loan providers, proceed to check their eligibility criteria and ensure that you qualify. This involves checking such factors as the minimum monthly salary and age requirements.

    II. Pay off current loans

    You will also want to first clear any other loans, payday or otherwise that you may be having with same or another credit service provider. Applying to multiple loans when you already have a bad credit history says volumes about your financial planning and this may scare off potential lenders.

    III. Provide valid and updated information

    Most online-based bad credit payday loan service providers operate on a strict code of trust and transparency when it comes to customer verification. You might want to consider this when filling your registration details or turning in your loan application as simple discrepancies in what you provide and publicly available records may see you disqualified.

    IV. Ensure you pass the identity verification and fraud checks

    The bad credit payday loan provider may have mentioned that they won’t conduct a credit score check but this doesn’t mean that they don’t conduct a background search on you. They will first check with the publicly available voters register to confirm your identity. It is therefore imperative that you ensure that the details provided to the lender matches the publicly available records.

    V. Check the lenders minimum and maximum loan amounts

    Most payday lenders will always indicate the minimum and maximum loan amounts they can provide an individual with a bad credit score. Some will even specify the loan amounts available to first-time applicants. If, for instance, 247 Moneybox has their first-time loan applicant maximum set at £80, it doesn’t help to make a £100 application with the lender.

    Factors to consider before applying for a payday loan with bad credit:

    • Fees and charges: The Financial Conduct Authority is quite specific when it comes to capping the fees and charges imposed by the bad credit payday lenders. Ensure that your preferred payday loan provider is FCA loan-price regulation compliant.
    • APR: The Annual Percentage Rate of a loan takes into account the interest and other associated charges charged on a loan. You are better going for the payday loan lender with the lowest/most affordable APR.
    • Possibility of an extended repayment period: Theoretically, the payday loan is supposed to help carry you until the next payday at which time it should be paid in full. Some bad credit payday lenders are however empathetic to your situation and allow extended repayment periods where the loan is spread and paid during several paydays.
    • Credit score checking: If possible go for the ‘No-Credit Check’ payday loan providers. This is because every time a lender pulls your credit score record, they leave a digital footprint that other lenders may use to deny you loans especially if the case of multiple checks in a short period.
    • Reporting to the credit referencing bureaus: You should also only go for a bad credit payday lender who helps you build or rebuild your credit score. Ensure that they explicitly promise to share your stellar loan repayment record with the referencing bureaus.

    Bottom line

    A bad credit score should no longer be a hindrance to loan access, especially in the case of time-sensitive cash emergencies. The bad credit payday loan lenders are out to make this a reality by advancing loan services to different individuals irrespective of their current credit rating. When assessing your eligibility for payday loans, these brands look into more than just your credit score and credit history. Some don’t even pull out your credit record but still help you build a credit history if you don’t have one or rebuild a negative one by reporting your loan repayment progress to the credit reference bureaus, effectively helping you gain access to better loan services and high street lenders in future. Some of the upsides of these payday bad credit references are the fact they have some of the fastest loan application and processing services. But this is a double-edged sword seeing that without proper financial discipline, you will end up hooked onto these expensive loans –especially when you rely on them for non-emergencies.

    Try Our Recommended UK Payday Loan Provider 2020:

    • Get an Instant Quote
    • Apply within 2 Minutes
    • Friendly Support Service
    • FCA Regulated
    *Subject to lender requirements and approval.


    What is a bad credit payday loan?

    This refers to a short term loan service advanced to individuals with a bad credit score based on salary income. In most cases, the amount advanced is only a percentage of the individual’s monthly salary and is supposed to be paid back during the next payday.

    Must I settle the full loan amount during the next payday?

    In theory, YES. The bad credit payday loan should be paid back immediately the next salary check clears. However, most payday loan lenders have embraced more flexible payment terms and offer extended payday loan repayment periods based on the amounts advanced. On our list of best bad credit payday loan providers, Peach has the shortest repayment period at 15 days while On Stride Financials has the most extended repayment period of 3 years.

    How long does it take for the payday loan to be approved and deposited into my account?

    Different payday loan direct lenders have different approaches to loan processing. They, however, are faster than conventional banks and will almost always process all loan applications during the same day they were accepted and deposit cash into your account within minutes – average 15 minutes – of loan approval.

    What are the maximum amounts I can get for a bad credit payday loan?

    The maximum amounts you can get for a bad credit payday loans vary from one institution to another. Some have a solid limit to what they can advance a first-time applicant while others don’t. The bottom line to either is that if you are looking for higher loans, you must prove your ability to repay in the form of solid salary income and no other debt obligations.

    Will my bad credit payday lender run a credit score check?

    Check through the fine print of the bad credit lenders loan terms to see if they explicitly commit to not pulling out your credit score report. Note that this is different from the statement ‘we don’t just consider your credit score in determining your eligibility for a payday loan’ as most will still conduct a soft credit score check.

    Can timely bad credit payday loan repayment help improve my credit score?

    Yes. Note that even though most bad credit payday loan service providers will lay too much emphasis on your credit score when determining your eligibility, most will help you rebuild your bad score or build a new one if you don’t have any by sharing your loan and repayment information with the bureau.

    What are the most common causes of bad credit?

    A bad credit score is primarily as a result of two primary factors. Firstly, it can be as a result of past financial mistakes like delayed loan repayments or failure to repay altogether and that’s where rebuilding comes in as you are trying to salvage your already soiled borrowing habits. Secondly, it can be as a result of a lack of debt history. You are considered to have a bad credit score history if you have never borrowed loans and banks aren’t sure about your borrowing history and thus the term ‘building’ a credit score.


    Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.