Have a Bad Credit Score But Need a Loan?
It’s common for those with poor credit scores to be rejected for lending when they need it most. Our mission is to ensure lending is available quickly and safely, providing fixed-cost loans to help solve everyday short-term cash flow issues and financial headaches.
Why Bad Credit Makes Borrowing Difficult
Most lenders regard your credit score as the most important factor in assessing a loan application – making borrowing with a poor credit history next to impossible! We work differently and look at each application’s bigger picture.
How Cashfloat Evaluates Affordability Over Credit Score
Responsible lending checks are vital, but unsecured bad credit loans that you can comfortably afford and that help you overcome an unexpected expense can be a lifeline – and we’ll confirm you’re able to repay without stretching your financial health as our top priority.
Realistic Approval Expectations for People With Poor Credit
While personal loans with bad credit are hard to come by from conventional lenders, our approval ratings are high, even if you’ve been turned down before, because we’ll assess your individual circumstances and make a fair assessment from there.
Example of a Cashfloat Bad Credit Loan
What Are Bad Credit Loans?
Bad credit loans in the UK are a type of short-term, unsecured personal loan available to applicants who may be struggling with their credit score or have previous credit issues.
Who Bad Credit Loans Are Designed For
We can consider most applicants who need help after being declined elsewhere, from first-time borrowers with no credit score to those recovering from past bad credit and looking for safe borrowing options.
How Income and Recent Financial Behaviour Influence Approval
Cashfloat may ask for copies of your bank statements and payslips, which helps us verify your income and ensure we can see a track record of responsible financial management rather than repeat patterns of borrowing.
Myths and Misconceptions About Bad Credit Lending
Assume you’ll be turned down for a loan because you receive benefits? This isn’t an issue, as long as you have another income source and stable earnings that will manageably cover your repayments.
Can I Get a Loan with No Credit Check?
It’s advisable to steer clear of direct lenders offering loans for bad credit that promise no credit checks, because credit checks are mandatory for approving loan applications!
Why Full Credit Checks Protect Consumers
Any reputable direct lender in the UK must perform a hard credit check to ensure we’re not lending to a customer who cannot keep up with their repayments, and not allowing anyone to overstretch their finances beyond what they can afford.
The Risks of Lenders Offering No-Check Loans
Short-term bad credit loans that offer only a soft credit check, or none at all, will almost always come with prohibitively high interest rates and are often provided by unregulated, unlicensed lenders.
How a Credit Check Affects Your Score (And How it Doesn’t)
Hard credit checks show up on your credit file, but taking out a safe, low-credit-score loan and making on-time repayments is a good way to rebuild your credit score, whereas soft checks won’t be reported at all and aren’t visible to any third party.
Eligibility Criteria for Bad Credit Borrowers
Finding responsible emergency loans for bad-credit applicants shouldn’t be complex, and we apply straightforward lending rules to help you see if you’re likely to be approved.
Minimum Requirements for UK Borrowers
Our loans for poor credit are suited to applicants who:
- Are at least 18 years old
- Have a UK bank account
- Are legal residents of the UK
- Can demonstrate a stable income
If you can tick all these boxes, you’re welcome to apply for our same-day loans and complete a quick creditworthiness evaluation!
What Lenders Look for Beyond the Credit Score
We have a duty to lend responsibly, and while we’ll offer a fast decision, it’ll be based on the health of your finances, the stability of your income, and your repayment history – regardless of whether you’ve had money issues due to a low score before.
Why Affordability Is More Important Than the Score Itself
Creditworthiness is the key aspect when we’re assessing no-guarantor loan applicants. We need to know that you’re certain you can manage your repayments without getting yourself into further financial difficulties.
APPLY NOWWhy Cashfloat Is a Trusted Option for Bad Credit Loans
All too often, people looking for the best direct lenders for bad credit loans end up resorting to high-interest lenders that further damage their credit, primarily because conventional lenders automatically reject applicants with adverse credit history.
We’re an FCA-regulated lender and make short-term loans fair, quick and accessible, with every client benefiting from:
- Direct lending from us to you – no brokers, no third parties and no hidden intermediary fees
- Flexible loan values from £250 up to £1,500
- Fast, verified decisions with most applications confirmed in two to three minutes
- A single online application process for speed, clarity and a lack of stress
- Varied repayment periods to suit your budget and affordability
- Able to consider a range of credit profiles as an independent direct lender
- Transparent, fixed and upfront costs with zero early repayment penalties
- Fair loan decisions based on more than just your credit score
- UK-based customer support team to help and advise
- No requirement to have a guarantor and no application costs
We’re proud to be highly rated on several trusted third-party review platforms and welcome prospective applicants to check out our customer feedback for more insight!
Apply for a Bad Credit Loan
Repay over 3 months, 2 monthly repayments of £230.26 , last month repayment of £230.27
APPLY NOWRepay over 4 months, First month repayment of £ 136.62 , 2 monthly repayments of £ 212.55 , last month repayment of £ 129.07
APPLY NOWHow Cashfloat’s Bad Credit Loans work
Need a loan after missed payments, but unsure how to get started with your application? We’ve made it as easy as possible to find the funding you need.
Step 1 – Simple Online Application
Fill in some information about you, the borrowing you need, your income and contact details, and click submit – there are no long call queues, and you’ll only need to fill in one online form.
Step 2 – Instant Decision Process
The Cashfloat team will get back to you quickly, with most decisions made in just two to three minutes.
Step 3 – Payout Within an Hour if Approved
If we’re able to approve your loan, we’ll get the funds on their way and make transfers to customers’ accounts every hour!
Step 4 – Monthly Instalment Repayments
Choose when you’d like to repay, and we’ll set up a monthly direct debit with a transparent repayment structure to avoid any doubt or uncertainty.
Step 5 – Option to Repay Early and Save Interest
Taken out a six-month loan but found yourself in a better financial position than you’d thought? Take advantage of our easy repayment option and lower your overall interest costs, with no penalties or early-exit charges in sight.
Easy & Flexible Repayments
Pick your preferred loan duration, use our calculator to compare repayment periods, and decide whether you’d like to apply Easy Start for a little extra breathing space for your first instalment!
How Instalments Work Over 3–9 Months
Same-day loans for bad credit applicants can be repaid over three to nine months, depending on the value and our eligibility criteria, which means you can spread emergency costs for longer if you need to.
Early Repayment and Saving Interest
Short-term cash problems don’t always last, and if you’re able to repay early, we’ll be happy to close your account and reduce the interest you pay.
Support Available if You Struggle With Repayments
Our UK-based support team is genuinely here to help. If you’re worried or know you’ll miss a repayment, please call us or get in touch another way, and we’ll put a plan together.
What is a Bad Credit Score vs a Good Credit Score?
There are several credit report agencies that lenders will use to assess your creditworthiness, and each has its own credit scoring scale. Here are some of the most popular ones for you to compare:
| TransUnion Score | Experian Score | Equifax Score | Credit Rating | What that means |
| 300–600 | 0–560 | N/A | Very Poor | Most lenders will reject your credit application |
| 601–660 | 561–720 | 0–438 | Poor | You’ll likely be accepted for bad credit loans, but may be offered high interest rates and low credit limits |
| 661–720 | 721–880 | 439–530 | Fair | You’ll qualify for fair credit score loans with reasonable rates, but you’ll still have a low limit |
| 721–780 | 881–960 | 531–670 | Good | You’ll be able to access a higher credit limit, but not the most competitive rates |
| 781–850 | 961–999 | 811–1000 | Excellent | You’ll probably get competitive credit offers with excellent rates and high limits |
From April 2021, Equifax changed their credit scoring system so there is no longer a ‘Very Poor’ band. Equifax scores also now come with a ‘Very Good’ band for scores of 671-810.
Are you concerned that your credit score isn’t up to scratch? Don’t worry — you can still apply with Cashfloat! Your credit rating is just one of the many factors we consider when reviewing your loan application. At Cashfloat, you can get a loan for good credit, fair credit, average credit, bad credit or even with no credit history at all.
As long as we see from your budget that you can afford the loan, we’re happy to help you access the emergency funds you need.
Does Cashfloat Provide Loans to People with no Credit History?
If you have no credit history or a ‘thin file’, as it’s otherwise known, it will be harder for us to approve your loan. This is because, due to the high-risk nature of our loans, we need some sort of evidence that you have been responsible with credit in the past. This is especially important because our credit products are more expensive than most others!
If you are looking to borrow money online but are struggling to get approved because you have no credit history, we suggest you start off with a credit building credit card. By making timely repayments on your card, you’ll prove to credit rating agencies and future lenders that you can handle credit responsibly.
————
What is a Soft Search for a Loan?
A soft search for a loan is when a ‘soft credit check’ is performed to determine your eligibility for a loan. Soft credit checks do not affect your credit score and are invisible to lenders, employers, and companies who may perform credit checks on you in the future.
Lenders might use soft searches on your credit file to offer you pre-approved credit offers or to allow you to check your eligibility for a certain credit product without impacting your credit history.
If you complete an actual credit application, however, lenders will perform a ’hard credit check’. Hard searches entail a more thorough review of your credit profile and they do leave an imprint on your file. Hard searches can potentially affect your credit score, especially if the search is from a creditor for a loan or from a credit card application.
Being an FCA regulated and trusted UK lender, Cashfloat will conduct a hard credit check on completed applications. This is to ensure the financial safety of potential customers and protects them from taking out a loan they can’t afford to repay.
Understanding Credit Scores in the UK
Bad credit happens for countless reasons and can often be down to overstretching in the past, defaults on loans or credit cards, borrowing more than you can afford, or being hit by an unexpected event like ill health or redundancy that means you’re left adrift.
Cashfloat’s underwriting team knows that the average debt of a person with a poor credit rating is £9,000 and advises that you can assess your credit profile directly with agencies like TransUnion, Equifax and Experian if you’re unsure where you stand.
What Affects Your Credit Score Most
Some of the most common challenges we hear about include:
- A late payment history: 32%
- Loan defaults: 25%
- County Court Judgements: 7%
We’re happy to consider applicants with defaults, but can also lend to those with no credit history who’ve simply never taken out a loan or credit agreement before!
Why Poor Credit Is More Common Than Many Think
Rest assured that poor credit isn’t unusual or even rare, and about 15% of the UK population has a low credit rating – which is why affordable, safe and responsible borrowing options are so important.
How Lenders Interpret Your Credit Profile Differently
Lenders always have different eligibility criteria, which is why most big banks will reject any applicant without a good or excellent score out of hand. Around 25% of Cashfloat’s approved borrowers have low credit scores, and we’ll ensure we offer clear interest costs and no hidden fees as standard.
Improving Your Credit Score Before and After Borrowing
Found it had to secure instalment loans for bad credit, and think you’re in an endless spiral? Think again! There are lots of things you can do to improve your credit score to boost your chances of approval and keep building it higher.
Small Habits That Improve Credit Over Time
The best way to tackle a low credit score is to be responsible with your borrowing and to keep chipping away at debt while avoiding applying for further loans unless necessary.
How Making Regular Repayments Helps Your Score
Every little adds up, and a history of on-time repayments works in your favour. That’s because lenders can see you’re managing your money and keeping pace with your commitments.
Practical Steps to Improve Before Applying
Unsure whether your credit score is good or bad? Download your file from the three main bureaus and check for mistakes or inaccuracies that can be corrected.
Bad Credit Loans vs Other Borrowing Options
Direct lender bad credit loans blend the best of all worlds, with fast approvals, individual assessments of your circumstances and the assurance of up-front costs and interest charges for you to review before you decide whether to proceed.
Speed and Accessibility
We created our range of loans for borrowers with poor credit to ensure borrowing is safe and easy, and you’ll be able to apply online and get a decision in minutes.
Eligibility Requirements
Your credit score is just one aspect of your finances, and we’ll review your overall situation before deciding whether to approve your loan.
Repayment Flexibility
Choose from flexible instalments over your preferred period and pick your monthly repayment date. If you can repay early, you can reduce the interest with no penalties or charges.
Suitability for Financial Emergencies
Short-term loans are ideal for applicants with sudden bills, emergency repairs or other unexpected challenges, and can be a good way to spread those costs over up to nine months.
Alternatives to Bad Credit Loans
While we advise against high-risk, high-cost bad credit loans, there are several ways you might be able to access financial difficulty support or cover unexpected bills, even if you have poor credit.
Personal Loans From Banks
Personal loans are available from most high street banks, and your likelihood of approval will depend on their lending policies – you can normally check these online before you apply.
Guarantor Loans
If you have someone who will act as your guarantor and commit to repaying your loan if you can’t, you can consider a guarantor loan, although you may need to wait longer for an application to be approved.
Secured Loans
Secured loans are tied to an asset the lender can seize if you don’t repay, such as a property, vehicle or something else.
Credit-Building Credit Cards
Credit builder cards and accounts offer low amounts of credit you can borrow and repay to help improve your score – most have a maximum lending value, but can help repair a low credit rating.
Why choose Cashfloat?
Cashfloat offers direct bad credit loans, which means you’re borrowing straight from us, won’t ever speak with a broker, and can chat with our in-house customer support team at any time.
Direct Lender Advantage
When you pick Cashfloat, you work with us and only us. Our loans are flexible and straightforward, with an Easy Start option that gives you an extra month to repay with no additional interest!
Clear, Transparent Rates
We’re a fully FCA-regulated, established lender who works to ensure responsible loans are accessible to all, applying fair eligibility assessments and ensuring you’re never exposed to hidden fees, extra charges or uncertain interest rates.
Secure Handling of Personal Data
Keeping your information safe is crucial, and we ensure your data is secure and confidential through comprehensive GDPR and data protection compliance, and by being a company registered with the Information Commissioner’s Office.
FAQs: Bad Credit Loans in the UK
How fast can I get a loan for bad credit?
If you need an urgent loan for bad credit, you can apply with Cashfloat and get the money funded to your bank account within one hour*, if approved. The application form is simple and quick to complete. Most people complete it within 2-3 minutes. Once you’ve applied, you’ll get an instant decision. Cashfloat are here to help you get the urgent loan you need.
Can I get a cheap loan for bad credit?
Low apr loans with bad credit can be hard to find because poor credit loans often come with higher interest rates. The good news is that Cashfloat offers lower interest loans for bad credit than many lenders on the market. We believe in giving everyone a fair chance to obtain credit at reasonable rates, even if you have a lower credit score. The good news is that Cashflboat offers lower interest rate loans for bad credit than many lenders on the market. We always try to give everyone credit at reasonable rates, even when they have a low credit score.
Why is it better to borrow from a direct lender?
Here are some of the pros of getting a loan from a direct lender:
- Know who you’re borrowing money from!
- Have any queries? Ask your lender directly.
- You won’t pay any broker fees.
- You only have to share your details with the lender, meaning they’ll be kept secure.
Can I pay back my loan in easy to manage instalments?
Yes! At Cashfloat, we provide flexible repayment instalment loans that can be paid back over a 3–9 month period. With an instalment loan, you can repay your bad credit loan in regular instalments over a few months. This makes loan repayments simple and easy to manage and removes any uncertainty about what payments you need to make.
If you’re looking to apply for a bad credit instalment loan up to £1,500 from a UK direct lender today, we can help. Our straightforward application form ensures a hassle-free process, and if you’re approved, we’ll deposit the money in your account within an hour*.
Am I eligible for a bad credit score loan if I’m on benefits?
You can apply for a loan for bad credit from Cashfloat if you:
- A UK resident
- Have a UK bank account
- Above the age of 18
- Have a steady source of income – this can includes benefits
Your income can include benefits, but you will need to have another source of income besides this. If the only income you get is from benefits, you won’t be able to apply for a loan with Cashfloat.
If you get a salary or have another regular source of income, and you get additional income from benefits, you can apply for a loan with us. Keep in mind, however, that we might ask you for information about your benefit payments alongside information about your other sources of income.
As a trustworthy direct lender, we want to make sure that you can afford a loan before we’ll fund it. Therefore, we’ll make a comprehensive check of your financial details before giving you a loan. This will include carrying out a credit check amongst other things. To see if you could qualify for a Cashfloat loan today, you can do a quick affordability test with our loan affordability calculator.
If you’re unemployed or living on benefits and you’re struggling to pay for essentials, please don’t apply for a loan from Cashfloat. It’s much better to:
- Reach out to Citizens Advice for help with your finances
- Contact Shelter if you need help paying for essentials
- Get in touch with Stepchange for debt advice
You may also be eligible for additional benefits from the government. You can read our complete guide to the UK benefits system here for further information.
Can I get a loan with poor credit without using a credit broker?
Yes, definitely! Cashfloat is a leading direct lender, and we offer bad credit loans with no brokers involved. All you need to do is make sure not to tick the ‘brokerage’ tick box on the application form and we will not share your application with anyone else!
Can getting bad credit finance improve my credit rating?
Yes! In contrast to what most people think, getting bad credit financing can improve your credit
score. If you show that
you can pay back your loan on time after you take it out, your credit score will improve.
Another type of loan provided to people with poor credit scores is a
‘credit-builder loan’. These
are loans that can be used to repair a damaged credit score. You can find out more about credit
builder loans
here.
Should I try to improve my credit rating before applying?
If you don’t need to borrow money urgently, you should look at trying to improve your
credit score. Check
out our advice
here.
You can get a credit report from different
credit reference agencies to see how your credit rating changes as you
take steps to improve it. If you manage
to improve your credit score enough, you might find that you’re accepted for a personal
loan with lower
interest rates. If you do need a loan quickly, however, you can apply here with Cashfloat!
Can I get a bad credit loan with guaranteed approval from a direct lender?
People who are worried about getting rejected for a loan because of their poor credit score often look for loans with guaranteed approval. We don’t recommend guaranteed approval loans, however, because lenders that offer them take an irresponsible attitude towards their customers’ financial wellbeing.
A lender should always assess your personal situation to see if you can afford to borrow money, just like Cashfloat do.
Unfortunately, we can’t guarantee you’ll be approved for a Cashfloat loan. The good news, however, is that we can lend to people with all types of credit scores. Even if you have a very bad credit history, we’ll do our best to get you the funds you need. We also won’t ask for a guarantor or collateral, and you can also get funded in one hour if you’re approved*. Beat that!
Where can I get help with my application form?
Can I get a bad credit loan from Cashfloat if my credit score is very low?
Potentially, yes, if you’re able to comfortably manage the repayments. Cashfloat is an independent lender, which means we can consider applications from people with poor or very poor credit, provided their affordability checks show the repayments will be affordable and they meet our responsible lending criteria.
How much can I borrow with a bad credit loan?
Cashfloat can offer borrowing for applicants with low credit scoring of between £300 and £1,500. The exact amount we’re able to lend may depend on your income, spending commitments and overall financial stability.
Does Cashfloat run a credit check on bad credit loan applications?
Yes. A full credit check is important to give us a complete picture of each applicant’s circumstances. However, credit checks are conducted only on completed applications to ensure the loan is suitable and affordable.
Do Cashfloat’s bad credit loans require a guarantor?
No. Cashfloat provides unsecured loans that don’t require a guarantor, but creditworthiness checks must be completed before we can make a decision.
Will applying affect my credit score?
Credit searches are a necessity for reputable, regulated lenders. Cashfloat performs just one hard search before a bad credit loan can be finalised, and emphasises that making repayments on time can help improve your credit record.
Why might Cashfloat ask for extra documents like bank statements?
We won’t always need to request additional information, but this might be required to confirm your income or other details and to ensure that taking out a loan won’t place pressure on your finances.
Can I repay my loan early?
Yes! We allow all borrowers to repay early with no additional fees, and if you’re able to settle the balance sooner than you’d thought, you’ll also reduce the overall interest paid.
What helps Cashfloat approve someone with a low credit score?
Applications are assessed on several criteria, rather than solely on your credit score. We’ll take into account your budget, income sources and stability, history of on-time repayments, and your overall financial situation, all of which play a role in the decision.
If I have been declined elsewhere, can I still apply here?
You can, and it’s possible that one lender will happily approve an application that another has automatically declined, because each lender uses different criteria. Having had a loan rejected in the past doesn’t mean a new application will definitely be turned down, but applying to multiple lenders can impact your credit score if you accumulate numerous searches in a short space of time.
How are repayments structured on a Cashfloat bad credit loan?
Repayments are made every month and deducted by direct debit on your preferred day in equal monthly instalments over your chosen term. This helps you spread the cost of your borrowing more comfortably while knowing exactly when each repayment falls due.
Can a loan from Cashfloat help rebuild my credit score?
It can, and you’ll find lots of tips and guidance on how responsible borrowing, on-time repayment history, and keeping up with your repayment schedule can improve your credit profile over time in our guides and lending pages.
What is the maximum duration for a bad credit loan?
Terms range from three to nine months, depending on the amount borrowed and how long you need to repay affordably. Repaying a loan over a longer period means each instalment is lower, but the total amount you’ll repay may be higher.
What should I consider before borrowing with a bad credit score?
It’s important that you are sure the repayments you’re agreeing to fit within your budget, know that you’re borrowing only the necessary amount, and have checked all the options to ensure you’re applying for a loan that will genuinely help your situation.