£800 Loans for Bad Credit

Updated: April 16, 2024 Author:

Quick Answer: Any £800 loan for bad credit that’s advertised as being guaranteed and not conducting a credit check is not operating legally. This is because the lender is exploiting your situation for their own gain by ignoring the affordability of the loan and your ability to pay it back without facing hardship. Taking the time to assess your options and find a more affordable solution is always in your best interests and will help you escape debt faster. 

    What’s the easiest way to get a £800 loan with bad credit?

    It’s completely understandable to be asking these types of questions when you’re working hard to pay your bills and feel like you can’t get a break. The problem is that if you end up searching for them online, you can be sent to all manner of sites and lenders that simply don’t have your best interests at heart. 

    If you’re in a financial emergency and have bad credit right now, you can feel like the whole world is against you. Then suddenly a lender appears with what sounds like a very simple three-month loan to cover your £800. While the short duration might make you think you can get out of debt more quickly, it’s actually working against you because you’ll be charged a higher interest rate. Lenders that take advantage of financial difficulty to make a quick profit in this way do not have your best interests at heart. 

    A short-term loan is not automatically the best solution just because the lender makes the whole process sound like a weight is being taken off your shoulders. Other options to consider from respectable, regulated lenders are: 

    • Secured Loans: Securing your loan against something you own, like your car or home, will mitigate a large part of the risk the lender feels exposed to. This will be reflected in a lower interest rate, and therefore a more affordable loan. Provided you can keep up with the repayments and are confident in your budgeting, a secured loan could be a far more economical solution 
    • Guarantor Loans: Similar to a secured loan, a guarantor loan is structured to reduce the risk exposure of the lender. In this case, someone you trust co-signs your loan and becomes liable for it should you become unable to pay for any reason. If you have a guarantor you can end up paying less interest on the amount you borrow

    The key is to focus on the affordability of the loan when you want to borrow £800, not solely on the ease and speed of approval. 

    What are affordable ways to borrow £800?

    A bad credit score shouldn’t automatically mean that you’re at the mercy of lenders who want to exploit your financial circumstances for their own gain. Taking a moment to pause, breathe, and consider your options can make a significant difference to how you approach finding the money you need. 

    To show you that there are other options out there, you may want to consider the following: 

    • Applying for a money transfer credit card can provide a lower-interest borrowing solution when you need £800
    • Applying for an overdraft from your High Street bank could also provide a flexible means of borrowing over the short term 
    • Credit Unions are another option. You do need to be a member to get a Credit Union loan and have savings in a savings account to use as security. If you aren’t already a member, you may have friends and family who are members. The loan would be in their name as it’s their account, then you repay them.

    It’s tempting to dismiss all of the above if you have a bad credit score because you can feel backed into a corner and that you have no real options. The best approach is to work through each of these avenues one by one so you can see which are open to you.

    What are direct lender loans for bad credit?

    Because boosting your credit score can take 12-18 months and you need £800 much quicker than that, it can be tempting to approach more unconventional lenders. Direct lender loans are increasingly widely advertised online. The idea here is that the broker service (effectively the middleman) is removed and that you’re applying and then borrowing solely with the final lender. A word of caution is needed at this point. 

    While the talk of lower interest, faster access to cash, and easier approvals can be highly tempting, there’s a major red flag you need to be wary of. Beware of any form of guaranteed approval messaging — it really is too good to be true. No lender that promises a guaranteed loan can do so without falling foul of the FCA’s rules and regulations. Why does this matter? Because those rules and regulations (as much as they may feel like red tape when you’re under pressure) are there to protect you and your family from exploitation and unscrupulous lenders. 

    Are no credit check loans for bad credit actually legal?

    No, they are not legal. The FCA’s list of misleading terms information shows why they are cracking down on guaranteed/no credit check loans. They are not approved by the FCA. This means that the lending practices are not overseen or regulated by a trusted independent body. 

    The problem here is that when you need an £800 cash loan quickly you are at greater risk of being persuaded to take out a loan that isn’t in your best interests. These types of unchecked loans pay no attention to how affordable they are to you and your family, and do not care whether you can repay them without experiencing undue hardship. Just because a loan is marketed as being quick, easy, and on your side doesn’t mean that’s the case when the repayments start to become due. 

    How can I get emergency cash in the UK?

    If you find yourself seemingly at the end of the line when it comes to borrowing options, you may think there’s just no help out there for you. Depending on whether you qualify for universal credit, as well as a variety of other factors, you may be eligible to apply for an advance (interest-free loan) from the Department of Work and Pensions. It will be paid back over 2 years by being automatically deducted from your monthly universal credit payment. 

    The key point here is that, whether or not you qualify for universal credit, there are always ways to find financial help. You shouldn’t feel forced to resort to loans that exploit your current situation and pay no attention to affordability.