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Can I Get A Quick Loan With Bad Credit?

If you need some emergency cash, or have a temporary shortfall in your income, quick loans can offer the ideal solution. A simple and uncomplicated way to borrow money, quick cash loans are typically processed rapidly and with the minimum of paperwork too.

If you’ve got a bad credit history, you may have struggled to find finance elsewhere and had your applications turned down. With the streamlined process and more relaxed eligibility criteria, you might be wondering whether quick cash loans could provide a viable alternative. Here’s a closer look at exactly what are quick loans, and whether they’re available to borrowers with bad credit.

Get Your Rating Before Applying

Most people have heard of credit ratings, but not everyone has seen their own report. This can be accessed more easily than you might think and if you have a bad credit history, it's worth obtaining a copy before you go any further.

Checking your own credit rating will help you identify how you’re likely to be viewed by any potential lenders. You might find that your own rating isn’t as bad as you think, or conversely, you might discover that defaults, missed or late payments have had a bigger impact than you realised. Experian is one of the biggest global credit agencies and you can check your rating via their site.

Another reason to check your own rating before applying for bad credit loans is that you might find errors and anomalies which need to be corrected. In some cases the lender might forget to update the records, so a loan might still show as outstanding. If you’ve had more serious credit problems but have recovered, you may possibly have paid off CCJs or cleared arrangements which were in default. If these aren’t updated to show they have been resolved, your credit rating will take a hit. It’s always worth checking carefully to make sure everything is completely up to date.

Once you know that your credit rating is correct and what it will look like to a lender, you can decide whether to apply for a quick loan, or whether to wait a while. Having declined applications on your file can hurt your credit rating further so it’s advisable to only apply if you think you stand a chance of being approved.

The Quick Loans Process

UK quick loans are very different to traditional borrowing as they’re designed to provide cash in an emergency. This means that the typical protracted process is completely scrapped and replaced with a fast-paced procedure designed to get the money to you, fast.

You’ll still have to provide some basic information but you won’t have to supply the same extensive details that a typical lender will require. Every quick loan lender will have their own eligibility criteria which are typically:

  • UK bank account
  • UK resident
  • Aged over 18
  • In full-time employment (usually)

If you can tick all the above boxes, and provide the basic information online, you’ll move on to the next part of the application which is the credit check. This is where the lender runs some checks to see your credit score and decides whether you meet their minimum requirements.

Does Bad Credit Matter For Quick Loans?

Quick loans are typically for much smaller sums of money and are repaid over a shorter term. In some cases they may even be repayable in their entirety after a month. Other types of online quick loans can be extended for several months, depending on the lender.

The lower values and short repayment terms mean this type of finance is often considered to be less risky than others. As such, it may be accessible to those with bad credit.

This doesn’t mean that quick cash loans can be provided to just anyone; lenders in the UK are regulated by the FCA and are obliged to check for affordability. Traditional lenders do this by taking a vast amount of information about your personal finances, but with quick loan lenders it’s a much slicker process.

Your credit rating will reveal your current financial position, and more recent debt problems will present more of an issue than those in the past. If you’ve got a history of late or missed payments, or even CCJs, you could still find a bad credit quick loan. However, if these problems occurred fairly recently and weren’t isolated incidents, you may find it much more difficult to get approved.

Lenders look at the various facts to try and establish a picture of your current financial position. If the indications show that you're not keeping up with your existing financial commitments, it wouldn't be ethical for a lender to allow you to borrow more cash.

Quick Loans: A Different Type Of Borrowing

If you have a bad credit history and have been unable to access any other kind of finance, being approved for a quick loan can be a huge relief. However, it’s important to remember that quick loans aren’t suitable for the same purposes as other types of borrowing.

More specifically, quick loans are intended to be a short term measure. This could be to cover an expense that rose without warning, or to bridge a temporary drop in cashflow. Due to the higher interest rates, they aren’t suitable for longer borrowing needs, such as buying a car.

For more information about this type of borrowing, take a look at Quick Loans: A Comprehensive Guide.

Shop Around For Bad Credit Quick Loans

Just like all other types of borrowing, there are some lenders that have stricter criteria and others that specialise in bad credit quick loans. By applying to the lender that’s most closely suited to your needs, you’ll maximise your chances of being accepted.

There’s no black and white answer to whether a bad credit history could prevent you from taking out a quick loan, as it depends on individual circumstances. However, if you can afford the repayments and your bad credit is firmly in the past, you stand a good chance with one of the more specialised lenders.

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