Borrowing small sums of money from a bank can actually be harder than convincing them to part ways with a larger amount. Banks make money from interest and they would rather lend you a few thousand pounds and have you pay it back over a few years so they make the most money out of it. Small loans offered by direct lenders can be an alternative for people looking for a quick cash fix to whatever emergency has popped up in their lives.

These loans are designed to be paid out, and also to be repaid in a short term period of time so lenders of small loans tend to focus less on your credit history and more on how you intend to pay the loan back, and of course your ability to do so.

What exactly is a small loan and can I get one instantly or quickly?

A small loan is a short term loan for sum that usually doesn’t exceed a £1000. Usually they are for only a few hundred pounds and used by people in a variety of ways to help them through tough spots in life and known as quick loans. Also known as payday loans or short term loans, amongst other names, the repayment period for them can be anything from a few months to over a year and in some cases it can be an instant loan in terms of payout. They generally have a high acceptance rate, even for people with a less than ideal credit history, and this makes them quite popular.

Where’s the best place to find small payday loans?

Most small loan lenders can be found online. A simple google search will bring up a whole host of people who specialise in small loans and visiting their sites will most likely give you the opportunity to fill in an application for a small payday loan. It is very important that the information you provide when applying for a loan is truthful and precise, even if it means admitting that you have bade credit. If a lender sees inconsistencies between your application and what they find in their soft credit checks, it will hurt your chances of being accepted.

Can I get a small loan with a bad credit score?

Being accepted for a small loan with bad credit is possible because the types of credit checks that direct lenders will perform are not as stringent as the ones done by traditional lenders for bad credit loans. If you are over 18, have a consistent income, live in the UK, and have a bank account, you meet the basic criteria for a short loan.

Obviously, if you are taking out a loan and you have bad credit, you are going to be charged a higher interest rate than if you had a stellar credit score. But if you can pay the loan back quickly, you shouldn’t feel the pinch too much and it is a good way for people with bad credit to get financial assistance in emergencies.

Which lenders give the best small loans?

There is no straight answer to this I’m afraid. There are hundreds if not thousands of small loan lenders out there and they will all look at your application through their own eyes according to their own system and criteria and that gives you a chance of finding the best payday loans. To give yourself the best chances of getting a loan that works for you, make sure all your financial information that you are submitting is clear and easy to understand, and above all be honest about your current and past situations. Getting help from a small loan broker like us can also greatly increase you chances of finding a better deal as we will approach our extensive panel of lenders with your details and take the leg work away from you.

Compare small loans example and for illustrative purposes only.

Compare small loans

Total Amount

Length borrowed for

Monthly APR example Representative 1266%

Loan total

Monthly repayment

£100 loan

3 months 24% £151 £50.33

£150 loan

3 months 24% £227.69 £75.90

Can I get a small loan with no credit check fast?

No this isn’t possible as all lenders are required to perform some kind of credit checks on potential borrowers. With mainstream banks, they get your credit file from a credit referencing agency like Equifax and go over your financial history with a fine tooth comb before deciding to lend you money or not. Small loans lenders are different. They still perform credit checks but theirs are to assess whether or not you can pay the fast loan back without missing payments and getting yourself into deeper trouble. All loans are checked and you cannot get a no credit check loan from a regulated and authorised Lender of the Financial Conduct Authority.
So if your credit history isn’t the best but you are financially stable at the present time, a small loan could be the option for you.

Do you have any advice for people with financial difficulties due to debt?

If you are in serious financial trouble, don’t think getting a small loan will help you. Compiling even more debt is just going to worsen things. Instead you should contact the nationaldebtline.org and see what advice they can help you with. Here’s a great link to get started: https://www.nationaldebtline.org/EW/factsheets/Pages/payday-loans/payday-loan-debt.aspx. It may seem like there’s no way out, but with some good advice and a few lifestyle changes it is very possible to get your life back on track.

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