WARNING: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk/en.

Rates from 12.9% APR to 1625.5% APR.

Representative Example: £1,000 borrowed for 18 months. Repayment of 17 Months at £87.22 and final repayment of £87.70 The total amount repayable is £1570.44. Interest amounts to £570.44, an annual interest rate of 59.97%. Representative APR: 79.5% (variable)

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At BadCredit.co.uk, we could help you get loan you need faster and with less effort. We quickly analyse our panel of lenders for you and present you with the best match, making the whole loan process of securing a loan easier and giving you significantly better odds of being approved.

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Our group of lenders use cutting-edge technology to process applications quickly, which can lead to super fast approvals and even same-day funding from some lenders. But remember, approval speed and funding times might be different depending on the lender you’re matched with, so we can’t guarantee you’ll be funded on the same day.

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We work with a wide range of lenders and brokers, and we compare them without performing a hard credit check on your file. Our panel carries out a soft search, which only you can see on your credit report. We use the information you provide to pinpoint the lowest cost lender in our network who’s likely to approve your application.

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When you request a quote from BadCredit.co.uk, we use your information to connect you with a credit provider likely to accommodate your credit needs. Your data is protected using encryption on our SSL-secured website, and we neither store nor share your information with third parties, except for the lender or broker you are matched with.

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Unlike some of the larger comparison websites that are owned by product providers, who often push their own products first, BadCredit.co.uk is entirely independent and unbiased. Our dedication to impartiality ensures that we focus solely on providing you with the most suitable options for your unique financial needs, without any hidden agendas.



Current best unsecured bad credit loan direct lenders


We’ve compared hundreds of loans and compiled a list of the top 5 UK loans from lenders who might offer loans to individuals with a less-than-perfect credit history.

Try our eligibility checker to receive a free quote from our panel without impacting your credit score. Keep in mind if, after receiving your quote you formally apply for a loan with a lender they will perform a hard credit check which will affect your credit file.

Keep in mind: our panel may change over time, and we might not compare all lenders featured in our top 5 list.

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What are short term loans?

Short-term loans are financial instruments designed to provide borrowers with a temporary infusion of cash to address immediate needs or temporary financial challenges. These loans are typically structured to be paid back within a relatively short period, often ranging from a few weeks to a year.

Short-term loans generally have higher interest rates compared to long-term loans, due to the increased risk for the lender and the quick repayment schedule. Borrowers should carefully consider their ability to repay a short-term loan before taking one out and explore alternative financing options if possible.


Frequently asked questions (FAQ)

Are short-term loans good for your credit rating?

Short term loans could potentially be good for your credit rating if you make the repayments on time. This might increase your credit rating and possibly make it easier to receive credit and finance in the future. 

However, if you fail to repay the short-term loan, it could have a negative impact on your credit rating. Therefore, it might make it harder to get loans in the future, and the interest rate could be higher. It’s important to make sure you can afford to pay back the short-term loan before applying.

Can you get a short term loan with bad credit?

You can get a short term loan with bad credit but expect to pay higher interest rates, and there’s no guarantee. Lenders will run a credit check to determine if you qualify for a short term loan. Here at BadCredit.co.uk, we have 30+ loan lenders on our loans panel. 

Furthermore, the amount you can borrow with bad credit could be lower. That’s because lenders want to offset the risk, and the amount you could borrow depends on your credit score.

How do short-term loan repayment work?

Short-term loan repayments work by setting up monthly payments over a specific period of time. The amount you pay per month is a combination of the loan amount and interest payment. You could reduce the monthly repayment by extending the loan period.

You’ll need to make the repayments on time to avoid taking a negative hit on your credit score. Also, you might default on your loan if you are very late on your payments. Therefore, it’s important to ensure you can afford the short-term loan before applying. 

Can you get a cheap short term loan?

You can’t get a cheap short term loan because the interest rates are usually higher than long-term ones due to the risk for the lender. However, short term loans could still be worth it compared to going into overdraft with your bank account during emergencies. 

To get a better rates for short term loans, it’s wise to compare multiple lenders for the best deal. Here at BadCredit.co.uk, we have 30+ loan lenders to choose from.

Are there any associated fees with short term loans?

There are a number of fees that could potentially be associated associated with short term loans you need to be aware of before applying. Here’s a summary of the common fee types to expect:

  • Origination fee: An origination fee is usually around 0.5%-1% of the loan amount that’s charged by the lender as compensation for processing the loan application. 
  • Late payment penalties: This fee is charged if you fail to repay the short-term loan on time. 
  • Prepayment fee: You will be charged an extra fee if you decide to repay the short-term loan early. 

In the interest of transparency, it’s important to read the short term loan terms and conditions for all the fees. This allows you to learn if there are hidden fees and the size of each one. Therefore, you can determine if you can afford the fees before applying for a short-term loan.

How quickly can I access funds with short term loans?

You could access funds on the same day with short term loans, but there’s no guarantee. It depends on how many applications you make and the time of day you apply for the short term loan. 

Using a short term loan comparison website like BadCredit.co.uk connects you with a larger pool of loan lenders. This could decrease the amount of time it takes to receive your funds. If your short term loan application is approved, you might get the funds within a few hours.

What happens if I can’t repay the short term loan?

If you can’t repay your short term loan, then you’ll begin to accumulate late fees, and it could reflect badly on your credit rating. This will make it harder to get loans in the future, and if you do get approved, the loan amount will likely be lower and at higher interest rates. 

Therefore, it’s important to only borrow the amount you can afford to repay. Consider increasing the loan duration so the monthly repayment sums are smaller. 

Finally, if unforeseen financial difficulty makes loan repayment difficult, you can choose a debt consolidation loan. This allows you to take out another loan to pay existing ones. With the debt consolidation loan, you could increase the repayment length to alleviate your financial difficulties.

Can you pay off a short term loan early?

You could pay off a short term loan early, depending on the terms and conditions of the deal. When applying for a short term loan, you need to check the details regarding paying off your loan early. 

Also, you might be charged a prepayment fee, some lenders won’t charge this fee. If you plan on potentially paying back the short term loan early, look for a deal without a prepayment fee. 

Paying off a loan early is a great idea if you can afford it since you could save money on interest and other charges. Also, it might reflect positively on your credit rating since you paid off the loan on time.

What are the risks with short term loans?

The risk of a short term loan includes getting into a debt spiral if you cannot afford to pay off the loan. For example, unforeseen financial emergencies may leave you with a lack of funds to make the repayments on time, and you’ll be charged with late fees. 

Also, you could potentially negatively impact your credit score if repayments are not made on time. This will make it harder to get loans in the future, including car financing or a mortgage. 

Therefore, short term loans could be viewed as a last resort option, and you need to carefully evaluate your finances to ensure you can afford repayments. 

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Page last updated: December 08, 2023 | Author: