Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).

Payday Lenders Offer Loans for Good and Bad Credit

A bad credit designation interferes with loan approval at the bank; traditional lenders often require a high credit score for acceptance. A personal history of payment problems or other financial inconsistencies is all it takes to reduce your credit score, which may limit your access to conventional bank loans. Fortunately, payday lenders offer bad credit loans, providing short-term financing for applicants with imperfect credit histories. If you need money today, but your credit score doesn’t measure up to bank standards, consider the benefits of Omacl loans.

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Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable). 

Need a Bad Credit Loan? Payday Lenders Can Help

Payday lenders specialise in providing small, short-term loans for UK applicants with good and bad credit; your so-so credit score may not be a deal breaker online. Because they offer short-term loans, backed by an upcoming paycheck, payday lenders have greater flexibility than banks do, approving loan applicants.

When you need money is a hurry, payday lenders offer distinct advantages, compared to traditional funding institutions. Among the many distinctions setting apart online loans, users enjoy the following benefits.

  • High Acceptance Rates – Creditors evaluate each loan applicant to assess creditworthiness, using information provided by credit reference agencies. Although payday lenders are required to review candidates for bad credit loans, online providers rely on streamlined pre-approval screening to speed up the funding process. Though a comprehensive credit check may undermine acceptance at the bank, short-term payday lenders may be able to accept bad credit applicants. Each case is unique and there’s no obligation for applying.
  • Online Convenience – Banking online doesn’t take very much time and trouble, prompting many UK credit consumers to partner with payday lenders for good and bad credit loans. Unlike traditional brick-and-mortar banks, payday lenders do not require in-person visits for bad credit loans. Rather, your request for funding is completed online and then submitted for immediate review. As long as you’re connected to the internet, you can access Omacl payday lenders from your laptop or mobile device, allowing you to request a loan at your convenience.
  • Rapid Responses – Payday lenders recognise the need for speed, putting forth straightforward funding options for good credit and bad credit loan applicants. Online applications receive immediate attention, resulting in short turnaround times. Whether or not you are accepted for an online loan, payday lenders will not keep you waiting. A rapid response enables you to quickly partner with an Omacl lender or seek money elsewhere, should your funding request be declined. Rapid online response ensures money is available when you need it, avoiding some of the funding delays commonly associated with conventional lending.
  • Flexible Lending Options – Each funding need is unique, so a one-size-fits-all approach doesn’t address short term lending demand. Payday lenders understand consumers need flexible loans, for both good credit and bad credit scenarios. To cover diverse finance needs, payday providers extend loans in various amounts. Whether you require just a few hundred pounds for an unexpected expense or £4,000 for house repairs, payday lenders deliver flexible funding alternatives, addressing a wide range of short-term finance needs.
  • Direct Transfers – When time is short, you can’t afford to wait for the vital financial assistance you need. Payday lenders understand the urgency facing short-term loan applicants, so they strive to provide fast funding. After you’ve been accepted for a loan and establish terms with your online lending partner, loan proceeds are transferred directly to your current account. The same account is then utilised for automatic payments toward your outstanding loan balance.
  • Unrestrained Usage – Every finance need is unique, requiring flexible solutions, without limitations on usage. Banks and other traditional lending outlets put forth various financial products, aimed at particular spending functions. Options include loans for buying cars and houses, as well as student financing for university expense. Payday loans offer greater flexibility than conventional loans do, because the money is not restricted to certain types of spending. Payday financing is commonly used to pay bills, manage financial emergencies, and stretch household income from one payday to the next.

How Does Credit Scoring Affect Short-term Loans?

In order to reduce risk when offering consumer loans, lenders consider applicants’ past performance managing money. Your financial history is important to prospective lenders, because past practices may indicate how you’ll manage financial obligations in the future. When vetting prospective clients, banks use information provided by credit reference agencies to measure risk and make lending determinations.

Credit reference agencies are private, for-profit, organisations responsible for maintaining financial information about individual consumers. Each time you engage a creditor or agree to a credit arrangement with a service provider, credit reference agencies note the transaction. Over time, your credit reference file expands with new entries, reflecting a lifetime of credit relationships. In addition to assembling data about individual credit consumers, the agencies are also responsible for credit “scoring.” The practice assigns a numeric value, rating each person’s creditworthiness.

Your credit score is a simplified reference, representing your entire history managing financial obligations. The three-digit score is derived from past behaviour; scores rise and fall as personal credit conditions change. Positive credit outcomes such as loan satisfaction and consistent on-time payments increase your score, whilst delinquency, default, and other credit inconsistencies typically result in a reduced score.

Three top credit reference agencies are responsible for most of the credit scoring undertaken in the UK. Experian, Equifax, and TransUnion operate independently, so your credit rating may vary from one agency to the next. Despite the potential for slight variances in credit reporting, the organisations use the same information to evaluate consumers, resulting in similar credit scores across the three different agencies.

Maintaining a favorable credit score increases access to the best available credit resources, including the lowest interest rates and consumer-friendly loan terms. A low credit score, on the other hand, limits access to bank financing and may result in a “bad credit” designation, identifying you as a higher-than-average lending risk. Though bad credit applicants may not be accepted for conventional loans at the bank, payday lenders offer bad credit alternatives, providing short-term financial resources for individuals with imperfect credit histories.

How Does Omacl Compare?

Why Use Us?
How much can I borrow?
Up to £5,000
No hidden fees
Chance of getting approved?
High approval
What are the repayment terms?
1 - 36 Months
No paperwork.
How do I apply?
Apply Online
2 min Application
Do I need to pay back a lump sum?
Easy repayments

How to Protect Your Credit Score

You can’t repair a damaged credit score overnight, but you can maintain healthy financial habits, contributing to a higher score. The following key concerns help establish a good credit score and avoid the consequences of bad credit.

  • On-time Payments – During the course of your financial life, you’ll engage in credit relationships with multiple creditors, ranging from mortgage lenders to credit card companies. In each case, it is important to honor the terms of your credit arrangement, making the required payments on or before account due dates. A single late payment may not be reported to credit reference agencies, as a courtesy, but even one late payment may generate penalties and fees. A pattern of lagging payments is sure to drive up the cost of borrowing options, but late fees may not be your biggest worry when paying late. Negative credit reporting may also result, diminishing your credit score and reducing your access to future finance opportunities.
  • Responsible Credit Management – Consumer financing includes various long-range credit opportunities and short-term loans, as well as revolving credit lines. As you manage your accounts, utilisation is an important aspect to consider. Maximising the use of your available credit lines doesn’t always reflect favorably on your credit score. Reserving some of your resources for future use is a better approach, showing reference agencies you are not maxed-out.
  • Living Beneath Your Means – The most reliable way to manage money is to balance your budget, using financial availability to guide personal spending decisions. Without a commitment to affordability, you may encounter cash flow problems between paydays, resulting from overspending. Living beneath your means ensures money is available for all of your financial commitments, allowing you to plan and save for long-term monetary goals. For the best results crafting a sustainable budget, first analyse monthly expenditure and then make adjustments to some crucial expenses, promoting affordability.
  • An Accurate Credit File – Credit reference agencies compile data from multiple sources, so mistakes, errors, and omissions may occur. To protect consumers from inaccurate credit scoring, rules require credit reference agencies to provide an annual copy of each individual’s credit report, upon request and free of charge. Reviewing your file at least once a year illuminates errors, allowing you to correct mistakes before the inaccurate information damages your reputation. As you check your credit report, be sure to confirm your current address. If the information shared in your credit file does not match the details provided when requesting financing, your application may be declined or acceptance delayed.

payday lender bad credit

When seeking short-term financing from payday lenders, bad credit isn’t always an issue. Flexible online resources accommodate good and bad credit conditions, offering short-term relief for applicants needing quick cash before payday.

Omacl on the FCA Register

Omacl is a registered trading name of Chojin Ltd and is authorised and regulated by the Financial Conduct Authority (FCA). You can view our registration status via reference number 732880.

Free Financial Advice

If you are struggling with debt or are unable to make your loan repayments, please visit the websites below. All of them offer free, impartial advice.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.