Small Loans For People With Bad Credit

Are you looking for a small loan from £100? Are you worried that your credit score could hold you back from getting approved?
Whatever your credit score, Cashflex could help you search for a small loan to suit your financial circumstances.

What is a small loan?

A small loan is a sum of money borrowed from a lender and repaid with interest.

Cashflex is a credit broker, working with a panel of trusted and responsible lenders who offer short-term personal loans from £100 to £10,000.
Depending on the amount of money you apply to borrow, you could repay your loan across a term of 3 to 60 months.

Who can apply for a small loan?

Every lender will have their own eligibility criteria, and you should make sure you meet their requirements before you make an application.
You can use Cashflex to search for a loan if you:

• Are over the age of 18;
• Are a UK resident;
• Have a UK bank account and valid debit card; and
• Have a regular source of income paid into your bank account.

Why choose Cashflex to search for your small loan?

• Our service is free to use.
• No obligation quotes.
• Our online application is straightforward and can be completed at a time and place that suits you.
• Check your eligibility before you apply with no impact to your credit score.*

*Cashflex uses soft search technology which will not harm your credit score. If you’re matched with a lender and choose to make a full application, you undergo a hard search with the lender. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time could have a negative effect on your credit score.

Small loans for bad credit

Getting approved for a small loan when you have poor credit might be difficult, although there are certain lenders – including a number of those on the Cashflex panel – who are willing to consider applications from people with less-than-perfect credit history.

It’s important to be aware that if you have poor credit, you might find that your borrowing options are limited. You may not be approved to borrow as much money as you need and could be offered a higher interest rate.
Before you apply, you should carefully consider the cost of monthly repayments, which will include interest, and ensure that this is affordable for you.

Will a small loan affect my credit score?

A loan of any amount will have an effect on your credit score.
How you manage your loan will influence whether your credit score declines or improves.
If you make your repayments on time each month, you could see an increase in your credit score, providing that you’ve also managed any other credit commitments well.

However, making late repayments or missing them altogether will cause your credit score to decrease. This will affect your chances of approval should you need to apply for credit again in the future.

How can I borrow a small amount of money instantly?

The process of applying for a loan takes time, and there is no such thing as an instant loan. Affordability checks carried out by the lender are in place to protect you and therefore cannot be rushed.

You can’t speed up the process of applying for a loan, but there are things you can do to make the journey as smooth as possible. For example, be sure to fill out the application form out carefully – providing inaccurate information could result in delays further down the line.

Some of the lenders on the Cashflex panel are able to send your money on the same day as your application is approved, although the time it takes for the money to show in your account will depend on your bank’s policies and procedures.

How can I improve my credit score?

There are a number of steps you can take if you’re hoping to work towards a healthier credit position. Improving your credit score could increase your chances of being accepted to borrow credit.

1. Register to vote.Being on the electoral register will allow potential lenders to verify you and your current information.

2. Check your credit record for errors and report any incorrect or outdated information to your credit reference agency (CRA).

3. Pay all your bills and any current credit commitments on time.

4. Limit the number of credit applications you make. When you apply for credit directly with a lender or provider, they’ll carry out a hard search. Several hard searches within a short space of time could cause your credit score to drop.

5. If you have a credit card, be sure to stay well within your credit limit and try to keep your credit card utilisation low.*

6. You should try to avoid using your credit card to withdraw money from cash machines. This is called a ‘cash advance’ and could be viewed by lenders as poor money management.

7. Be aware of the implications of sharing a joint account. When you share an account with somebody, you become financially linked to them. If they have a poor credit rating, there’s a chance that yours could be affected too.

*Your credit card utilisation is the percentage of credit you’re using based on your credit limit. For example, if you have a credit limit of £1,000 and a balance of £500, your credit utilisation would be 50%. If you’re aiming to increase your credit score, the lower your credit utilisation, the better.

I’m struggling to repay my loan; what are my options?

If you’re worried about your loan repayments, you should contact your lender as soon as possible. They will appreciate the fact that you’ve reached out and will be keen to discuss any options that may be available to help ease the pressure.

Please know that you can access free, confidential advice through StepChange, MoneyHelper, Citizens Advice, and National Debtline.