Bad credit payday loans for the UK. How does it work?
If you’re faced with a sudden unexpected expense or family emergency, a payday loan for those with bad credit can provide you with fast access to cash. There are various reasons why people apply for a payday loan for bad credit. However, most of our applicants are looking to borrow because they are faced with an unexpected bill or unforeseen circumstance and need access to some extra funds to help make ends meet.
Bad credit payday loans are created for people who need small loans quickly and would normally struggle to get such loans because of their poor credit history. These types of loans are designed for unexpected, one-off expenses, and have been created to help people until their payday. Payday loans, also sometimes referred to as a payday advance, are most commonly characterised by a short repayment period, small credit limit and a relatively higher APR. A payday loan for someone with bad credit is specifically designed to help individuals get quick access to the money they need.
Whatever the reason, whatever your circumstances, New Horizons can help. We receive over 5,000 applications every day, and we’re able to give many applicants’ access to a bad credit loan that is suitable for their circumstances. It means there is only a tiny percentage of people we can’t help, so the odds are stacked heavily in your favour.
No Credit? No Problem
More and more lenders at New Horizons now help customers with low credit scores or no credit history.
There are times when we could all do with a little extra cash to help keep our heads above water, whether we have bad credit or not. We don’t believe you should be punished for many years because of a past mistake.
At New Horizons, we do everything we can to help you find payday loans for bad credit. We provide access to bad credit loan providers in a user-friendly way that’s straightforward, quick, and transparent.
What does this guide answer about payday loans?
Q1 – Will my credit score affect my loan?
Q2 – Can I check if a bad credit loan is right for me?
Q3 – Does having a bad credit rating mean I will be automatically declined?
Q4 – Am I guaranteed to get a loan at New Horizons?
Q5 – I have a CCJ, can I still get a loan?
Q6 – I have been bankrupt in the past, can I still apply?
Q7 – Will I be accepted with no credit check?
Q8 – Can you apply online for a bad credit loan?
Q9 – Will the lenders New Horizons work with use Soft Search?
Q10 – If I have a bad credit score, will I need a guarantor?
Q11 – What should I do if I am struggling with debt?
Will my credit score affect my loan?
Our panel of lenders includes many that specialise in providing payday loans for bad credit in the UK. We understand that it doesn’t take much to damage your credit report, and we don’t believe you should be denied access to credit because of a past mistake. Most applicants that make an application for a loan via New Horizons have the funds transferred to their bank account in around 15 minutes*.
Can I check if a bad credit loan is right for me?
You can apply and get an instant decision without being under any obligation or affecting your credit score. We can do this because lenders only initially perform a soft credit search, which leaves no permanent mark on your credit report for other lenders to see. You can have as many soft credit searches as you like without affecting your credit score. You can search for lenders who are most likely to approve payday loans in the UK without the worry of this check leaving you with bad credit. Not only does this allow you to search a wide range of lenders for the right deal, but it also enables you to do so without having to affect your credit score negatively.
Failing a credit check, unfortunately, creates a damaging, negative cycle in which people with bad credit scores are not only turned down for payday loans, but loan lenders will downgrade their credit score even more. One consequence of this is that it can become even more challenging to get a loan in the future. Traditionally a loan application would involve a full credit search. If an applicant is denied credit, it shows on their credit record. Any subsequent lenders who performed a credit search would see another company has already refused you, and this would reduce your chance of them accepting you. It can compound the problem, as every denied application would leave another mark on your credit report, lowering your score and decreasing your chance of being accepted in future.
If you accept a loan offer, the lender will do a full credit check. However, at this stage, you will already know you meet the lender’s criteria. With a full search performed, making the repayments on time should only improve your credit score.
Does having a bad credit rating mean I will be automatically declined?
Not at all. If you have a poor credit rating, there are lenders, such as many banks or building societies, that will not consider lending to you. However, there is a growing volume of lenders that specialise in providing payday loans for bad credit. New Horizon’s has a huge panel of lenders who are all authorised and regulated by The Financial Conduct Authority. The lenders they work with offer bad credit loans and help people of all circumstances. Our partner’s lenders can also provide you with an instant online decision for an application.
Am I guaranteed to get a loan at New Horizons?
New Horizons gives you simple, instant access to a vast selection of loans; unfortunately, none of these is a guaranteed loan, because they don’t exist. These lenders are selected based on the information you provide us and are those that are most likely approve your payday loan quickly. Allowing you to choose the direct lender for you, you can be confident in the knowledge that you have a high chance of being approved.
I have a CCJ, can I still get a loan?
Yes. A CCJ stays on your credit record for six years, and we don’t believe you should be excluded from the personal loan market for this length of time. Many of our lenders specialise in bad credit loans, even for those with a CCJ against their name. Apply today and discover how Greater Things can help. You’re under no obligation and applying won’t affect your credit score in any way.
I have been bankrupt in the past, can I still apply?
Yes. Bankruptcy doesn’t automatically exclude you from getting a payday loan for bad credit. In real-world terms, it often means the person has learnt a lot of tough lessons and is unlikely to do anything that would jeopardise their financial security again. Many of the companies that specialise in providing payday loans for bad credit will also be able to help you if you’ve been bankrupt in the past. Our panel is generally interested in your more recent circumstances than your history.
Will I be accepted with no credit check?
There is a short answer to this question, no. Because The Financial Conduct Authority requires all lenders to carry out a credit check on your application. Those that mislead you by offering so-called ‘guaranteed loans’, there is no way of knowing for sure whether direct lenders will approve your loan until you apply. As such, there are no such things as guaranteed loans with no credit check. However, this led to an extremely negative cycle in which people with bad credit were often denied loans; making it even more difficult for them to get the loan they need in the future. Our system matches you with the direct lender more likely to accept your application. Having this information before you apply significantly reduces the chances of your application being denied. Furthermore, this ensures you quickly get the money you require as well as protecting your credit score.
Can you apply online for a bad credit loan?
Yes. Both New Horizons and our panel of direct lenders work hard to ensure the process is as user-friendly and straightforward as can be. You can complete the application online from start to finish. Meaning there is no confusing paperwork or inconvenient appointments you must attend that slow the process down.
You can complete your application on your smartphone, tablet or computer. We compare payday loans from over 50 lenders automatically for you, and we provide you with an instant decision and the best payday loan currently available for your situation from our panel, even if you have bad credit.
Will the lenders New Horizons work with use Soft Search?
All authorised direct lenders are required by law to perform credit checks on loan applications. Therefore, if you see a company advertising guaranteed payday loans with no credit check they are likely not being truthful with you. What this means is by applying for a so-called guaranteed loan you could be damaging your credit score without even knowing it. However, this doesn’t necessarily mean these loans are difficult to get if you suffer from bad credit. The good news is that our lenders will only soft search your application, so your credit score isn’t harmed.
If I have a bad credit score, will I need a guarantor?
Some lenders will insist on a guarantor while others won’t. Having a low credit score doesn’t automatically mean you will need a guarantor. However, using a guarantor can make you a potentially lower risk to lenders. If one is required to secure the best deal for you, the lender will tell you. Most people ask a close friend or family member with a good credit score to act as a guarantor for them.
What should I do if I am struggling with debt?
If you are struggling with your debts and require assistance, you can speak to the companies below, free of charge.