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Bad Credit Payday Loans

We’ve researched the Payday Loans for Bad Credit market and made a no nonsense guide and some top picks.

Check out our current hotpicks in the Payday Loans market for people with a poor credit rating.



Wonga are a well known Payday Loans provider and offer a range of short term loans for bad credit. They have a rating of 8.9 /10 for 1400 reviews on Trustpilot

Payday Loans Now offer payday loans up to £5000 for people with bad credit. A high ranking internet only provider, there is not a huge amount of reviews (or any) that we can find on this provider.


My Jar offer payday loans from £100 to £3600 for short term borrowing. They have an excellent rating on Trustpilot of 9.2 for 4200 reviews, check it out here


Sunny Loans are another provider worth considering. They offer £100 – £1000 loans with a low! (for a payday loan) representative APR of 380%. They have a 9.4/10 rating on trustpilot out of over 3200 reviews

How to get a payday loan with bad credit?

Bad credit does not necessarily mean you can’t get a payday loan, but if you have an outstanding County Court Judgement (CCJ), a bankruptcy in the last year, or if you are on a mandated management plan for debt, you will not be allowed to get one.


When should you get a payday loan?

You should get a payday loan only if you are able to pay it back on time, and still handle the upcoming expenses. There is little benefit in taking out a payday loan and having no money left to live on once you’ve paid it back. If you need to cover an expense right away though, and will be able to absorb the fees and interest without damaging your upcoming budget, then a payday loan is a possible solution.

Payday loans leave a mark on your credit, so only use them as a last resort.


Why a payday loan?

Payday loans are fast and available even if you have less-than-perfect credit.

bad credit payday loansHow much do bad credit payday loans cost?

The first cost to consider is the interest. It may not seem like a lot when viewed in pounds, but it can be a very high percentage when converted into an annual rate.

The second cost comes in the form of fees, especially for late or missed payments. If this happens, then your credit rating may be further damaged, which will have long-term costs when you try to borrow in the future.


Get the best payday loan deal

Shop around. Check Compare to Save for a handy list of the best deals out there. Once you have an idea of the different rates and services on offer, you can decide which is the best for you. Once that’s done, the best way to save money is to repay the loan quickly, avoiding further interest and fees.


How to apply for a payday loan with bad credit

If you have any major assets or security –

Be sure to list your major assets on the application form, as it may be worth enough points to off-set a poor credit rating.


Alternatives to a bad credit payday loan?

Logbook Loans for bad credit

If you own a vehicle, you can sign over ownership of the vehicle to the lender, for the duration of the loan. In most cases you will still maintain possession of the vehicle and be able to use it for work and personal needs, but official ownership can be claimed by the lender in the event that you do not pay back the loan as agreed.

Reputable lenders are interested in securing loans – not in setting you up to lose your car – so even in the event that a payment is late, you may still retain ownership of your vehicle. You will likely have to pay a late payment fee.

Logbook loans are usually limited to about half the value of the vehicle held, so if you default on your loan, you lose a lot more than what you owe, and the lender is more sure to recoup the lost money.


Secured Loans for bad credit ratings

A secured loan is similar to a logbook loan, but the lender will not take ownership of the item unless you fail to repay the loan.


Guaranteed Payday Loans for people with bad credit

If you have someone who is willing to sign on as a guarantor of your loan – that is, they agree to pay it back on your behalf if you fail to do so – then the lender will consider their credit rating and assets instead of, or in addition to, yours. This may greatly increase your chances of receiving the loan.

FAQ's on Payday Loans for Bad Credit

Is it harder to get a payday loan with bad credit?

Yes. In many cases, bad credit will mean that you won’t be able to get a loan. If you have assets, however, like owning your own home, your chances are greatly improved.


How long does it take to get my application approved?

Approval usually happens within a few seconds. Lenders usually work on a points system, and as soon as your application meets the required number of points, it is approved.


How fast does the loan money take to my account?

Money is usually transferred to your account within a few minutes, though this varies with your bank and other factors, such as day of the week, holidays, etc.


What if my poor credit payday loan is declined?

If your payday loan is declined, you may want to try other options. Logbook loans, where you hand over ownership of your vehicle to the lender until the loan is paid back, are an option. Offering security for the loan is another option; if you don’t repay the loan, the lender takes ownership of the security.


Do I need a credit check for my bad credit payday loan?

Yes, they will check your credit, and your credit rating will show this.


What exactly is responsible lending?

Responsible lending is the practice of only lending money to individuals who have a reasonable chance of being able to pay it back. It is illegal for a registered lender to lend money to an individual who has no reasonable means of repaying it.


Do payday loan lenders have to be regulated?

Yes, payday loan lenders are required to follow FCA regulations – but not all do. Be sure to check the FCA website to find out if a lender is regulated.

What shall I do if I cant payback my Payday Loan?

The first port of call is read up as much as you can on your situation. Money Advice Service has a lot of helpful information. Beware, Payday Loans are not a good option for you if you cannot always make repayments, you can end up in a far worse position than before you took out the loan.

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