Everyday Loans – Bad Credit Loans Direct Lender

Updated: September 23, 2024 Author:

Everyday Loans specialises in helping people borrow money when traditional lenders refuse. Borrow from £1,000 to £15,000 with up to 5 years to repay.

Everyday Loans is a UK direct lender for those with less-than-perfect credit scores. It has two consumer awards from Moneyfacts for 2023 and 2024 and a near five-star rating on Trustpilot, so does that make it a good choice as a lender for you?

What do Everyday Loans Offer?

Everyday Loans markets the brand as low credit score specialists for borrowers who have been refused loans elsewhere because of a bad credit score. They are a direct lender, so they are not brokers or credit agents working with a panel of lenders; you apply to them, and they either approve a loan or they don’t.

A Quick Summary of What’s on Offer

What can you Borrow Money for with Everyday Loans?

Loans can be used for any personal purpose. The only restriction (other than illegal activities and gambling) is that the loans cannot be used for business purposes. The company only provide personal loans, not business loans. They do provide loans for the self-employed, but the funds will be for personal expenses like any other personal loans. They won’t approve a loan to be used as capital in your business.

Pros and Cons of Everyday Loans

The Pros

  • Long established (2006) with a solid track record in the lending marketplace
  • Loans are from £1,000 to £15,000, and repayment periods vary from eighteen months to five years.
  • Credit checks use soft search technology so you’ll know early on if you’re unlikely to be accepted. Accepting an offer doesn’t guarantee approval. A hard check will be run to ensure you meet the eligibility requirements and affordability assessment. 
  • Decisions to lend are based on criteria broader than just a credit check, which can work for some people who are refused funds from mainstream lenders.
  • Joint applications are possible, which can help boost approval chances by combining two people’s earnings.
  • The application is made online with an initial decision in minutes.
  • Quoted example APRs are 99.9%. They are transparent in telling customers that interest rates can go up to 299.8%. That’s still lower than doorstep lenders or Payday loans, however, the highest rates will be for those with the most damaged credit files showing reports of CCJs and multiple accounts in default.
  • Interest rates are fixed, so the repayments won’t vary, allowing you to budget
  • If you pass the credit check, you can complete the rest of the loan application online or at a branch. This is a lender with a personalised level of service, preferring to have an open conversation about your loan in person. Appointments are with an account manager and last up to 1-hour. 
  • Once the loan offer is signed, funds are released within 24-48 hours.
  • Borrowers can choose the date for the monthly repayments.
  • Everyday Loans is a direct lender, not a broker or credit agent so they won’t run multiple credit checks
  • No loan arrangement fees
  • You can overpay without penalty – there are no charges for this.
  • You can apply for a debt consolidation loan with Everyday Loans, which streamlines different monthly payments into potentially more affordable amounts. However, this can cost more over the long term.
  • Applications are considered from subcontractors and the self-employed. However, unlike their other loans, the minimum applicant age is 21, and you must have a two-year record of self-employment.

The Cons

  • There are cheaper bad credit loans out there with Credit Unions and not-for-profit Community Development Finance Institutions (CDFIs).
  • Loan amounts are limited and start high (at £1,000). Other direct lenders charging comparable interest rates have loans from £100, and due to the higher interest, offer 12 months loans for bad credit helping to reduce the total cost of borrowing.
  • Interest rates vary, and the rate you are offered will depend on factors like how much you want to borrow, how long the loan is for, your income, and your credit rating. Your rate may not be the same as the advertised APR.
  • The initial decision is made in minutes but is conditional and not guaranteed acceptance.
  • They will run a hard credit check between a conditional offer and a final decision.
  • Because you must make an appointment and attend a branch which may be some distance from your home, the whole process can take several days.
  • Same day funding is not available.
  • Repayments are monthly only and by direct debit, ruling out customers requiring no bank account loans, and there are no options for weekly loan repayments despite having local branches.
  • Everyday Loan branches are concentrated mainly in London, the Southeast, the Midlands, and the North. There are no branches in the Southwest beyond Bristol. Face-to-face application can be inconvenient and unwelcome for some customers.
  • They only offer unsecured loans. Secured loans and guarantor loans, which could lower the interest rates customers are charged aren’t available.
  • Applicants with IVAs, Debt Management Plans (DMPs), or bankruptcy won’t be considered.
  • The most common negative reviews on Trustpilot complained about high interest rates.

Deal or no Deal?

If you want to borrow money and have bad credit, then Everyday Loans is definitely an option. However, you may find cheaper interest rates elsewhere, such as through Credit Union loans or Community Development Finance Institutions (CDFIs).

Everyday Loans are not suitable for quick loans because they prefer an in-person conversation at one of their branches to understand your financial situation, and to give you time to consider other options. Remember, the final interest rate and the monthly repayment amount won’t be confirmed until Everyday Loans has made their in-person assessment at a branch. If you have time to improve your credit score, it may be worth waiting, as a better credit file will mean lower interest rates.

There is no ‘one size fits all’ lender when it comes to bad credit loans, so it’s essential to do your research thoroughly and try to apply only to lenders likely to accept you to avoid lowering your credit score further.