Pay Weekly Loans for Bad Credit

Updated: August 02, 2024 Author:

Key takeaways Pay weekly loans offer more frequent, smaller repayments and can work well for people who are paid weekly or on benefits. Some online lenders offer weekly repayments, usually in the bad credit market, for those ineligible for loans from banks or mainstream providers. Credit unions and payday loan companies may also offer weekly loan repayments. Pay weekly loans are not the same as Payday loans. Community lenders operate in this sector to provide affordable lending services.

The majority of lenders structure loan repayments on a monthly basis, usually by Direct Debit or Standing Order. For those without a bank account or who prefer to work with a cash budget, pay weekly loans from local lenders may be able to be paid in person with cash. There are some borrowing options that exist for people with bad credit who want to borrow and find it easier to manage repayments on a weekly schedule.

If you are paid weekly, then a Pay Weekly Loan can make it much easier to budget and avoid putting aside money each week for a larger payment at the end of the month. Weekly repayments align with weekly pay, so managing cash flow and staying on track with your loan payments is much easier. Some Pay Weekly loans are aimed at people on benefits, despite pay periods differing between weekly, fortnightly, 4-weekly and monthly.

Key facts on pay weekly loans for bad credit 

  • Pay weekly loans are not the same as Payday loans. Payday loans are short-term loans and typically require a full repayment from the borrower on their next salary day. They are usually used by people who are paid monthly. Pay weekly loans tend to be longer agreements.
  • Pay weekly loans can be for larger amounts than Payday loans, which are a stop-gap to tide you over until your next salary date.
  • Payday loans are commonly the most expensive form of borrowing. Pay weekly loans are cheaper, but because pay weekly companies tend to operate in the bad credit sector, they are still more expensive than the banks and high street lenders.
  • Pay weekly loans do not focus on urgency – the priority is the repayment structure (although quick access to funds can also be a factor).

Where to find pay weekly loans for bad credit 

Online Lenders

Online lenders like simplefastloans.co.uk offer a quick internet-based lending service with weekly repayments as an option for borrowers instead of monthly. However, not all online lenders are equal!

Moneyline is an online direct lender, but they are also a not-for-profit company offering small loans to those in work and people on benefits and Universal Credit. You can borrow from £200 to £1,000 and pay back weekly from 14 to 32 weeks.

Doorstep Lenders

Doorstep lenders have almost disappeared from the lending market, although there are still a few left. Loan applications are processed online despite the name but a company agent will visit you in person to progress the application. They also call weekly at your home to collect the repayment instalment, which is helpful if you are paid in cash. 

Doorstep lenders run a credit check before deciding and will take on borrowers with a bad credit score, a CCJ, or an active bankruptcy. However, interest rates are very high.

Credit Unions

If you want to borrow from a Credit Union, you must be a member first. Each Credit Union operates differently, and some offer weekly or fortnightly repayments to borrowers. Depending on the Credit Union, you may be able to repay in person, by direct debit or standing order, or have your instalments deducted from your benefit payments. If the Credit Union issues a payment card, you can pay at a PayPoint.

Pawnbrokers

It’s a bit of an old-fashioned concept, but pawnbrokers are still around. Depending on the shop, you can raise a loan against items ranging from jewellery to electrical goods. Make sure the FCA regulates the pawnbroker you choose. Usually, items are held for six months, after which they are sold if the loan has not been repaid. The National Pawnbrokers Association has a handy search tool on their website to find a local shop with other helpful information about how pawnbroking works.

Community Lender Loans

Community lenders are a growing family of loan companies that aim to provide fair and affordable credit to people who otherwise would have to use high-cost lending solutions. Community Development Finance Institutions (CDFIs) seek to help those traditionally excluded from conventional banking and borrowing options or can only access borrowing at a very high cost. This is also known as the responsible finance sector.

There are portals online that allow you to search for a community lender depending on your borrowing requirements, usually linked to the purpose of the loan. Finding Finance can help you find a loan based on where you live and how much you need to borrow.

Conduit.org.uk markets themselves as a cheaper alternative to Payday and Doorstep loans. If you need a loan to purchase household items like furniture and white goods, then FairforYou.co.uk may be able to offer you credit to buy these directly from partner retailers. You can choose your repayment schedule, which can be weekly, fortnightly, or monthly. Fair for You is owned by the Fair Credit Charity, which supports Fair for You in offering loans to vulnerable people and families.

Will I have to pass a credit check for a pay weekly loan?

The majority of lenders will perform a credit check as part of their affordability assessment. There are two types of credit checks. A soft search is used as an eligibility checker and isn’t included on your credit report so those cannot cause your credit score to drop. A hard check is visible to lenders searching your credit report in the future and having too many in a short period of time can lower your credit score. When looking for a loan when your credit files indicate a poor history of repaying debts, subprime lenders focus on
your current ability to afford the weekly repayments going forward rather than historical factors only.