Payday Loans for Bad Credit

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There are times when we’re all faced with a bill we didn’t expect. From a broken-down car to a packed-in boiler or just a particularly expensive month, getting your hands on some extra money could always help, and everybody has been in the same position at some point.

If this all sounds familiar, you might just be one of the many people who frequently search online for ‘bad credit payday loans’. For those who struggle with a poor credit history, borrowing money can be harder than for people who have a more positive credit record, but that does not mean that applying for a loan has to be difficult.

What is a bad credit payday loan?

A bad credit payday loan is a high-cost, short-term credit solution that is specifically designed for borrowers who have a poor credit history. Today, payday loans for people with bad credit often refer to loans where repayments are stretched out over several months, but that still come with significant interest rates which can add up to a fairly expensive total repayment sum. 

Payday loans were a common form of borrowing that became the subject of particularly bad press during the mid-2000s. They were designed to be a short-term solution that was paid back when the borrower was next paid by their employer. Nowadays, the term is more frequently used to reference short-term credit that comes with high levels of interest attached. 

Does Adage Credit Offers Payday Loans?

Adage Credit does not offer payday loans, but we do offer what many people think is a better and more flexible alternative. Unlike payday loans, which require borrowers to pay back what they owe with interest when they next get paid, Adage Credit works with a panel of lenders from which you could borrow between £100 to £10,000 and choose a repayment term from 3 up to 60 months (5 years) dependant on the amount requested.

What this means is that rather than setting yourself back by eating into next month’s wages before it even hits your bank account, you could pay back what you owe over a longer period of time. Whilst in some circumstances this approach could work out more expensive in the long run, it can also help with budgeting as you won’t have to make a substantial repayment all in one go.

Can you get a payday loan with a bad credit rating?

Many lenders in the UK are willing to work with borrowers who have a less than credit perfect history. Whilst you may therefore be able to get a payday loan with a bad credit rating, that doesn’t necessarily mean that doing so is the best decision, as it can be expensive and failing to pay what you owe on time can be even more detrimental to your credit score.

Whilst your credit score is still important to many direct lenders, what also matters is whether or not your current personal and financial circumstances will realistically allow you to repay what you owe in full and on time.

Whether you can get a loan will depend on how closely you meet the eligibility criteria of the lenders that we have on our panel. By making an application via Adage Credit, you’ll be matched with a lender from our panel that is most likely to approve your application. All this means is that even though nobody is guaranteed to get a loan with a bad credit rating, applying with Adage Credit could give you a better chance of securing the credit you need.

What’s the difference when applying to a lender or through a broker?

Applying for a loan can be challenging if you struggle with bad credit. There are several ways to go about making an application, but the two most popular approaches are to apply either through a credit broker or directly to a lender.

Applying directly to lenders

When looking for a quick cash injection, people often feel that applying directly to a lender is the most straightforward thing to do. The problem with this is that there are hundreds of different options available when applying for a loan in the UK, and choosing which to pursue can be a thankless task.

Even though some lenders claim to offer loans without the need for a credit check, all UK credit providers are obligated to conduct these checks by the Financial Conduct Authority (FCA). If you’re applying directly to a lender who then rejects your request for a loan, the hard credit check they conducted on your file could damage your credit rating further and numerous checks within a short space of time (if, for instance, you applied directly to multiple lenders) could result in your credit score taking a significant hit.

Applying with a broker like Adage Credit

We can’t speak for other brokers but applying via Adage Credit could help you to secure the money that you need with a single hard credit check. For one thing, applying for a loan through a broker will grant you access to multiple lenders rather than just one. Following a quick affordability checker, our application process involves only a soft credit check which means that your credit rating will not be impacted until you make an application directly to one of our lenders (at which stage they will conduct a full credit check).

What is bad credit?

Having bad or poor credit rating usually means that there are negative features in your credit history that indicate to lenders that you could be a risky borrower. Your credit score is the product of many factors, and some that can cause a person to have poor history include high debt balances, recent bankruptcy or other insolvency solutions, or a history of late payments or defaults on outstanding debts.

Although a ‘bad’ credit score could be the result of financial mistakes you made in the past, it could also be that you simply haven’t taken out enough credit over time for credit agencies to build up a picture of your borrowing habits. Poor credit history is something that can be improved upon, but it won’t necessarily prevent you from accessing credit when you need it.

Will applying for a bad credit payday loan have an impact on my credit score?

Making an application for a payday loan could impact on your credit score, but unfortunately, things aren’t quite that simple. As we mentioned before, all authorised and regulated lenders in the UK are required to conduct credit checks on applicants as part of their affordability checks and the results can influence their lending decisions.

Bad credit applicants might start to run into trouble if they make multiple applications to various lenders as a result of being rejected. This is because each full (or ‘hard’) credit check will leave a marker on the applicant’s credit record which could be damaging to their rating.

How do payday loans for people with poor credit history work?

It used to be the case that payday loans were high-cost credit that people used to keep them going until they next got paid. On receipt of their paycheque, borrowers would then be required to pay back the amount they borrowed in addition to any fees and interest charged.

Nowadays, when people talk about payday loans, they’re often actually describing high-cost short-term credit that is repayable over several months rather than just on next pay day.

Learn more about how payday loans work

What are the disadvantages of bad credit loans?

They are often the last resort for people with poor credit, and there are some significant disadvantages to payday loans. For one thing, they often come with a high rate of interest that outstrips other forms of borrowing. These days, firms are restricted in how much they can charge borrowers, but it’s important to make sure that you can actually afford to make the repayments in full and on time before you take the plunge.

Another major disadvantage of payday loans is that they are designed to be a very short term form of borrowing. This means that borrowers do not have long to pay back what they owe, and this can lead to financial issues and even defaults.

How To Apply?

1. CALL Adage credit TODAY
To book your appointment with our Loan Manager, once booked we will need to see certain documents.

2. Meet your Loan Manager
(Face-to-face meeting)One of our loan Managers will sit with you to discuss your loan and fill in application.

3. Get your loan
If approved we will release the funds directly into your designated bank account

4. Repay your loan
Repayments are collected either on Weekly, Fortnightly, Four-Weekly or Monthly basis via Direct Debit from your bank account.

APR Representative example:

£200 Loan repayable over 24 week;
24 weekly payments of £13.33;
Rate of interest 86.7% p.a. fixed;
Representative 731.7.6% APR;
Total amount payable is £320