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Things happen, and you may suddenly be in a situation where you need to pay off an expense that just popped up. The money you expected from a job that you have completed long ago is delayed but you have an urgent bill to pay, such as the rent for a moving truck because your new job requires you to relocate.

In a perfect world, all you have to do is dip into your savings account. But the financial reality is many people do not have that benefit. What’s even more alarming is that you have employees and workers who often live from paycheck to paycheck. When an emergency or an extra expense comes up, they need to borrow – from friends, family, or the bank.

When there is no saving account to dip from and your credit cards are all maxed out, people try to get a guaranteed loans bad credit. Unfortunately, a large percentage of the population has very bad credit or living on benefits. Having bad credit and needing money badly places you in a difficult situation.

Why do we need very bad credit loans?

In the financial world, transactions are largely decided based on a person’s credit.

This is why we often hear people talking about their good or bad credit score. There is no clear definition of what good credit is. Different financial institutions give a person a different credit score based on their own set of criteria.

The same bank may give you a different score when applying for various financial products. Your credit score will be different when you apply for a mortgage compared to when you apply for a credit card or some type of guarantor loans. What is important is for you to get the highest credit score possible. This means that you are likely to get approved for the financial product you are applying for.

A higher credit score entitles you to better interest rates or better deals. A low score means that you have bad credit, this will make it difficult for you to get approved for a financial product such as a payday loan with bad credit unless it is payday loans bad credit designated.

Scores Bands


Guideline of Score Bands and their Rating

  • 0-279 Very Poor
  • 280-379 Poor
  • 380-419 Fair
  • 420-465 Good
  • 466+ Excellent

While the bands indicate how good your credit score is, it only serves as a guide for financial institutions. There are people with very high credit scores but are still rejected for credit.

Financial institutions have their own guidelines on how they extend credits, and there could be instances when, even with a high credit score, you will be denied a loan because you did not meet their other requirements.

Fee Table
Borrow £50 - £5,000
Loan type Short Term Loans
Approval Time Instant
Interest Rate 292% PA

Importance of Good Credit Score

It is important that a person understand how to keep his credit score high. Number one on the list is how you manage your finances and debt to avoid poor credit rating.

Your loans, monthly repayments, and credit history are all reported to the credit bureaus. You have to show the credit bureaus that you are responsible enough for the repayment of your financial obligations. Some people wrongly think that good credit could be achieved by not borrowing.

This is a wrong idea because the credit bureaus are looking at your financial history. If you do not borrow anything, your financial history will be empty. For example, you can build your credit history by charging small amounts to a credit card each month and always pay it back in full. When this shows up in your credit report, you are proving that you can responsibly manage your credit.

Bad credit scores explained

Loans for Very Bad Credit are generally expensive because the lender charges higher interest rates. The same lender may grant a loan of the same amount at a much lower interest rate to borrowers with good credit.

The interest rate charged to a borrower with poor credit, bad, or no credit is relatively higher than the normal interest rates because the lender is taking higher risks in extending his loans to you. If you have bad or no credit, it means that you have a history of paying your debts late or not paying at all. From the perspective of a lender, if you already have a history of late payment or non-payment of debts in the past, you may do the same thing to them.

The higher interest rates charged by lenders to borrowers with loans bad credit aim to compensate for the risk that they will not be repaid. Remember that the interest rate is the cost of borrowing money. The cost of borrowing money is higher for those who have a history of not paying back what they owed.

The lenders need to compensate for the risk of extending loans to borrowers with bad credit by charging higher interest rates.

If 100 people with bad credit borrow money from a lender and 20 of them fail to pay the loan back, the lender still makes enough money on the other 80 borrowers to cover the loss on the 20 that did not pay and still make a little profit.

It is a different story when they lend to borrowers with good credit. These pay their debts in full and on time more often, hence there is no need to charge them as much.

A bad credit loan could either be an unsecured loan or a secured loan. In an unsecured bad credit loan, the borrower has to sign a contract with the promise of repaying the loan in accordance with the terms and conditions of the loan.

Failure to repay the loan will cause the lender to pursue collection through a collection agency or legal mechanism, which will be costlier for the borrower.

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Bad Credit Ratings

If you are not able to create a credit history or if your credit history is quite bad that your credit score is very low, it will be difficult for you to apply for a loan from a bank or a credit union. However, there are financial institutions that offer personal loans to borrowers with poor credit, bad, or no credit. These type of personal loans are usually offered by payday loan companies, both storefront and online lenders, some banks, and credit unions.

Payday Loans Now works with such companies by identifying the right lender for your situation: bad credit ratings.

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Secured Payday Loans

A secured bad credit loan requires collateral (also known as security) such as a piece of jewellery, a car, or a home. The collateral secures the loan, which means that failure to repay the loan will allow the lender to confiscate the collateral as payment. In the unfortunate event that a person is in a situation that he is not able to continue the repayment on a secured loan, it might be an option to have a small guaranteed loan to cover those expenses. This is especially ideal if you are expecting a settlement in the near future which will get you back on your feet. Just make sure to keep paying these repayments as it can easily get out of hand. If you are a student you can apply for a UK Student loan.

What are Loans for bad credit no guarantor and how can they help you get by?

Loans for bad credit no guarantor are a type of secured loans. While you do not put up your car or house as collateral, you are securing your loans with a post-dated personal check. Failure to repay loans will cause the lender to cash your post-dated check. 

How Does Payday Loans Compare?

PLDNWhy Use Us?
How much can new customers borrow ? Up to £5,000 Find good lenders in minutes
What are the repayment terms? 3 - 24+ Months No paperwork
Representative APR 292% pa (variable) No obligation quote
Can I apply with bad credit? Yes Instant decision
Do we credit check?* No No credit footprint
Can I repay in instalments Yes Flexible repayment

How can Debt consolidation loans be useful?​

Debt consolidation loans are a type of service that binds the customer to a single fixed monthly fees contract in order to merge all pending loans into one. That means that an individual can choose to consolidate his bank account loan with his car lending and other pending loans with high rates. Usually, this option is most common among middle-age customers. If you agree you can sort out your emergency finance circumstances in minutes. Just choose the day and provide your details as long as you agree to the terms. 

Is PDLN a Direct Lender and how can they help?

PaydayloansNow is a London-based loan introducer that will help you find a direct lender that will give you loans at the lowest interest rate possible. They will help you apply for the type of loan that applies to you after completing a short online application. The company has a network of more than 50 lenders, increasing your chances of getting approved for a loan quickly and effortlessly. We are Authorised and regulated by the Financial Conduct Authority.

FAQ on Very Bad Credit Loans

If your loan gets approved, you can get funds in your account on the same day. Sometimes it is as quickly as just a few minutes. We have a simple and fast application form. The application can be filled and submitted in, literally, a couple of minutes. Once submitted successfully, you will get an immediate decision.

With PDLN, you can get a bad credit loan quickly. You have to fill our online application form with your basic details such as name address, income, and answer a few more questions. Once you complete the form, you can expect an instant decision. You can get a loan from us even if you have bad credit but meet our loan eligibility criteria. If we find out that you can repay the loan successfully and on-time, we won’t hesitate to transfer the money to your bank account.

Yes, a loan with bad credit can help your credit rating if you repay the loan on-time. Such loans are also known as credit builder loans. Repaying your bad credit loan at the decided time can improve your credit rating.

If your loan with bad credit gets approved, you can expect to get the required funds in your account in as little as 15 minutes. Since payments aren’t processed 24/7, you can expect to get the funds the next morning if the loan is sanctioned late at night.

No, you can’t. No matter the kind of loan you apply for, a credit check is necessary. It is because, without a credit check, the lenders won’t get an idea about what type of borrower you actually are. By viewing your credit file, the lender will get an understanding of the kind of risk and whether they will get their full money on time and without any hassle. A credit score will help you to avoid unmanageable borrowing, and give you a loan that makes sense for your situation.