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

Which payday loan is best for
people with bad credit?

Which payday loan is best for people with bad credit?

How Much Cash Do You Need?


Get Money Quickly when You Need It
When you have to have funds, you don’t want anything to stand in your way. Your bank may want to run a credit check on you and make lending into a long, drawn out process. You may not have time for that. Getting the funds together on your own may not be an option. You have a looming bill, and it needs to be paid right away. How do you get the funds for that?
It’s easy. Just apply for the loan you need through Power Funder. We make lending so easy that anyone can do it, no matter what their credit or financial situation is like.

How to Get Paid
Once the lender the loan comes from approves you for the loan, you can have your money deposited directly to your banking account in the next day or so. It can take from 1-3 days for the money to transfer. Once it does, you can start using it immediately.

Who Qualifies?
Almost everyone who applies for one of the loans offered by our many lenders is approved for at least one loan. You may not have a lot of options if you have made some serious financial mistakes in the past, but we will try to ensure you qualify for a loan that is close to what you are looking for. The better your financial situation, the more likely you are to qualify for the loan you want. That’s because lenders are looking for people who aren’t risky for them. They want people who are likely to pay them back on time, and when they take a look at your finances, they will determine if that applies to you.

How to Repay the Loan
The lender will make repayment arrangements with you. You will be responsible for sticking to the arrangements and repaying the loan in full, including any interest and fees accrued. If you pay late, then additional fees and interest may be added, increasing the cost of the loan. Be sure you make all payments on time and notify your lender if you are having problems doing so.

Low Cost Loans

Searching for a loan can be tedious especially when you want to get low cost loans. It can be time-consuming because you have to be patient in comparing different lenders to find the loan that best suit your financial need and personal circumstance.

How to Get Low Cost Loans?

In general, low cost loans are often the loans with the lowest APR. The lower the APR or the annual percentage rate, the less costly the loan is. Whether you apply for a loan for emergency reasons, for business and investment or personal purposes such as buying a car, home extensions, or vacation, you want to find low cost loans.

Those with high credit scores most often are the ones offered low cost loans. Therefore, the best way to qualify for low cost loans is to have good credit and maintain it. Make sure you can keep up with the repayments. If your credit rating isn’t so good, you may still be able to borrow money, but it’ll usually come with a much higher APR.

why choose low cost loans

Before you apply for a loan, decide on the amount you need to borrow and the period you want to pay it back. It will be easier for you to search, compare, and find the cheapest loan option for you. Then, compare the rates of different lenders on the same amount you want to borrow. Likewise, compare other fees and loan features included in the loan agreement.

The APR depends greatly on your credit score. Your personal circumstances will also affect the APR of the loan you are offered. The higher your credit score, the better the chance you have of being approved of low cost loans. In order to get low cost loans, you could try taking some steps to improve your credit score before you apply for one.

If you are new to the loan industry, you might as well learn the jargons. When you have sufficient knowledge on loans, you will be able to know how to find low cost loans.

The Interest Rate and the APR (Annual Percentage Rate)

You might get confused with the two, so here’s the thing. The interest rate is the amount you will pay each year for the borrowed money. It does not include fees or any other charges you may have to pay for the loan. An annual percentage rate or APR reflects not only the interest rate but also any points, any broker fees, and other charges that you pay to get the loan.

Important Note:

Take time and be mindful when comparing the APRs of fixed-rate loans with the APRs of adjustable-rate loans, or when comparing the APRs of different adjustable-rate loans.  Likewise, be careful when comparing the APR of a closed-end loan and an open-ended loan.

The Principal and the Total Cost of the Loan

This refers to the loan amount that the lender allows you to borrow. The total cost of the loan is the total amount you need to repay includes the principal, the interest rate, and other fees if there are any.

The Loan Term or the Repayment Period

This is how long you will repay the loan. Short-term loans are usually over one to three years. However, there are types of short-term loans such as payday loans that are payable in two to four weeks. Some also ranges from one to three months, depending on the lender. Short-term loans are typically small amounts. Long-term loans are large amounts that are payable over three to seven years or even three decades.

If you want to get low cost loans, you must also understand the different types of loans.

Fixed-rate Loans

Fixed-rate loans have a defined rate for the entire loan term. For instance, if you agree to a 10% rate for a three-year term, the rate will stay the same for three years of that loan. This way, you can budget well with your fixed monthly repayments.

Variable-rate Loans

These loans have interest rates that can change as market interest rates change. For example, you can agree to a three-year loan that is set at 10% for the first year. However, the rate can vary from 8% to 12% for the rest of the loan term.

Secured Loans

These loans require you to put up a collateral, such as your home, vehicle or any valuable asset to guarantee the loan. In case you default on the loans, the lender can seize your property and sell it to cover for the money you owed them. Secured loans are usually low cost loans.

Unsecured Loans

These type of loans do not require any collateral. The loan amount, the approval, and the interest rate depends on your credit rating and income.

Guarantor Loans

If you have no valuable asset to guarantee your loan, you can ask a friend or a family member with a good credit history to guarantee the loan for you. This person will co-sign your loan, and is known as the guarantor. This loan is quite popular for those with bad credit, thin credit or no credit at all. Because of the added security or guarantee of the loans, guarantor loans are one of the low cost loans in the market.

More Tips:

Always take time to shop around and compare rates. You can even make use of comparison sites to make the job faster. Aside from the rates and fees, compare also the flexibility of the loan term offered by lenders. Note that the quicker you repay the loan such as those in shorter terms, the less you will pay. Ultimately, you want make on time repayments to maintain or improve your credit rating. This will help you get low cost loans in the future.

If you are not sure of what you are getting yourself into, ask for a professional finance advice. You might end up jumping into something you’ll be paying more than you expected. It always pays to learn and understand first what you are dealing with. Don’t rush in your decision if you want to get low cost loans.

why get low cost loans

The Lenders List

Loan amount
£100 - £3,600
Loan term
3 - 12 Months
Apply Now

Show More ▼

Loan amount
£100 - £5,000
Loan term
1 -12 Months
Apply Now

Show More ▼

5 most recent personal loan reviews

Review of Police Credit Union

Since the very start coming to PCU back in June 2016 I have been 100% happy with the way the whole staff have looked after me and helped to make my future a lot happier for myself and family thank you PCU.

Review posted by David Green

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of AA

I have used the AA twice now and on both occasions they were extremely helpful and courteous to deal with. I would certainly not hesitate in recommending them to anyone.

Review posted by Patricia Greaves, Warrington

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Future Finance

My daughter applied for a loan with me as her guarantor. I only got a call to confirm a few details on the application form and money was in my account within 24 hours. Fantastic service and would recommend Future Finance loans to anyone refused a loan by the high street banks. Thanks for taking the financial stress from my daughter.

Review posted by Freda Humphries, Maidstone

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

To guarantee authentic and unbiased reviews we have used Trust Pilot.

Representative Example:
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

Please note:
Loanora is NOT a lender – we are a licensed broker working with the most popular direct lenders in the market to find you the most suitable short-term loan plan. Our FREE quoting service compares more than 40 lenders quickly and finds you a lender with the lowest rate that they are willing to lend to you today.

Rates from 45.3% APR to 1575% APR – we provide a no obligation quote, your APR will be based on your personal circumstances