When you’re short on cash and need a quick financial solution, finding the best payday loans UK can be a lifesaver. But if you also have a poor credit score, the search can be tricky. The good news is there are best UK payday loans options from direct lenders who look beyond your credit history and focus on your current ability to repay.
In this guide, we’ll cover the top 10 payday loans UK options for people with bad credit, highlighting their features, costs, and what makes each one stand out. We’ll also compare them so you can decide which fits your needs best.
1. Pounds to Pocket – Flexible Bad Credit Payday Loans
Description:
Pounds to Pocket is a short-term credit broker that partners with reputable UK direct lenders. They specialise in quick, same-day loans of £100 to £5,000 with repayment terms from 1 to 36 months. Designed for everyday people, Pounds to Pocket accepts applicants with poor credit and even those on benefits.
Features:
Borrow £100–£5,000.
Repayment terms: 1 to 36 months.
Instant online application in under 2 minutes.
Bad credit accepted.
UK-based lenders only.
No guarantor required.
Pricing:
Representative APR ranges from 48.1% to 1721%, depending on the lender match. Example: Borrowing £1,000 over 18 months = £1,605.96 total repayable, with an APR of 79.5% variable.
Why it stands out:
Pounds to Pocket puts current affordability above old credit history and partners only with responsible direct lenders.
2. Moneyline – Affordable Small Loans with Bad Credit Consideration
Description:
Moneyline is a direct lender offering small loans from £200 to £1,000. They specialise in helping people spread the cost of everyday needs, even if they have a low credit score. Loans are typically repaid over 14 to 32 weeks.
Features:
Loan amount: £200–£1,000.
Repayment: 14–32 weeks.
Decision within 2 working days.
Funds sent same day after approval.
Access via an app to check balance or make payments.
Bad credit considered.
Pricing:
Representative example: Borrowing £500 over 32 weeks = £708.80 total repayable at 193% APR.
Why it stands out:
Perfect for those who need a smaller loan amount, with repayments spread out weekly for easier budgeting.
3. Polar Credit – Revolving Credit Line Alternative to Payday Loans
Description:
Polar Credit offers a revolving credit facility instead of a one-time payday loan. This lets you withdraw funds up to your limit when needed, with cash transferred within minutes. It’s designed to be cheaper than traditional payday loans.
Features:
Borrow £200–£2,000 initially.
Funds available instantly after approval.
Only pay interest on what you use.
Lower rates than typical payday loans.
No repeated applications—ongoing credit line.
Pricing:
Representative APR 68.7% (variable). Borrowing £100 for 30 days costs about £5.75 compared to £24 from a payday loan.
Why it stands out:
A great choice if you want flexible borrowing and a much lower cost than traditional payday loans.
4. Fair Finance – Affordable Loans up to £3,000
Description:
Fair Finance is a socially responsible direct lender offering loans from £500 to £3,000 for new customers, with up to 18 months repayment for returning clients. They aim to serve communities often overlooked by mainstream lenders.
Features:
Loans up to £1,000 for new customers, £3,000 for existing.
Repayment: 6–18 months.
Decision within 24 hours.
Transparent admin fee of 6% (min £30).
Supports borrowers with bad credit, on benefits, or with CCJs.
Pricing:
Representative APR 280%. Example: £500 over 12 months = £929.40 total repayable.
Why it stands out:
Focuses on helping customers improve financial stability while providing fair access to credit.
5. Drafty – Fast Flexible Credit Line and Loans
Description:
Drafty offers both loans and a line of credit. You can borrow between £50 and £3,000 and reuse your limit once repaid. Funds arrive in your account within 90 seconds if approved.
Features:
Loans: £1,000–£3,000.
Credit line: £50–£3,000.
Repayment terms: 12–24 months for loans.
No early repayment fees.
Rated Excellent on Trustpilot.
Pricing:
Representative APR 96.2% (variable) for the credit line, or 79.9% for loans.
Why it stands out:
Extremely quick transfers and flexible re-borrowing make Drafty ideal for those who need fast access to funds multiple times.
6. Fast Loan UK – Cheapest £300 Payday Loan Direct Lender
Description:
Fast Loan UK offers short and medium-term loans, often providing the cheapest £300 loan compared to other UK lenders. They lend directly, with no broker fees.
Features:
Borrow £50–£2,000.
Flexible repayment: 7 days to 12 months.
Bad credit considered.
Personal Customer Care manager.
No early repayment fees.
Pricing:
Example: £300 over 8 months = £562.44 total repayable at 840.75% APR.
Why it stands out:
Ranked as the cheapest £300 direct lender loan in the UK, with flexible terms and no upfront fees.
7. Mr Lender – Medium-Term Payday Loan Specialist
Description:
Mr Lender is a direct lender offering loans from £200 to £1,000 for first-time customers, with repayment terms from 3 to 6 months. They consider applicants with poor credit if they can prove affordability.
Features:
Loan amount: £200–£1,000.
Repayment: 3–6 months.
No guarantor needed.
Same-day funding.
FCA regulated.
Pricing:
Representative APR 1,244%. £300 over 6 months = £544 total repayable.
Why it stands out:
Well-known in the UK payday loan space with transparent terms and quick approvals.
8. Lending Stream – Fast Payday Loan Alternative
Description:
Lending Stream provides instalment loans of up to £1,500 repayable over 6 months, with funds available in minutes.
Features:
Borrow £50–£1,500.
Repayment: 6 months.
Decision in under 90 seconds.
Available 24/7.
Pricing:
Representative APR 1,333%.
Why it stands out:
One of the fastest approval processes in the UK with a focus on repeat borrowers.
9. QuidMarket – Responsible Direct Lender
Description:
QuidMarket offers loans of £300–£1,500 repayable over 3–6 months. They manually assess each application for affordability rather than relying solely on credit scores.
Features:
Loan amount: £300–£1,500.
Repayment: 3–6 months.
Manual affordability checks.
Bad credit considered.
Pricing:
Representative APR 1,248%.
Why it stands out:
Personalised lending decisions make QuidMarket appealing for those with non-standard financial situations.
10. Fernovo – Payday Loan with Flexible Dates
Description:
Fernovo offers loans up to £1,000 repayable in 3–6 months. You can choose your repayment dates for better budgeting.
Features:
Borrow up to £1,000.
Flexible repayment scheduling.
No guarantor required.
Fast approval.
Pricing:
Representative APR 1,272%.
Why it stands out:
The ability to choose repayment dates adds flexibility for those with irregular income.
Comparing the Top 10 Payday Loans UK Direct Lender Options
When looking at these best UK payday loans, here’s what you should consider:
Loan Size:
If you only need a small loan (£100–£300), Fast Loan UK, Moneyline, and Pounds to Pocket are ideal.
For larger amounts up to £5,000, Pounds to Pocket and Fair Finance are better choices.Speed:
For near-instant transfers, Drafty, Lending Stream, and Polar Credit lead the pack.Cost:
In terms of low cost, Polar Credit and Fast Loan UK are the most affordable. Polar Credit is especially cheap compared to traditional payday loans.Flexibility:
If you prefer ongoing access to credit rather than a one-time loan, Drafty and Polar Credit offer revolving credit lines.Bad Credit Acceptance:
Moneyline, Pounds to Pocket, Fair Finance, and Fast Loan UK are the most understanding for poor credit applicants.
Final Thoughts
Finding the best payday loans UK direct lender when you have bad credit is about balancing cost, speed, and flexibility. If you want the lowest possible cost and ongoing access, Polar Credit is hard to beat. For fast one-off loans, Drafty and Fast Loan UK are excellent. If you need a larger sum over a longer term, Pounds to Pocket and Fair Finance are strong contenders.
The right choice depends on your borrowing needs, repayment ability, and urgency. Always borrow responsibly, and if you’re struggling with debt, seek free advice from organisations like StepChange or Citizens Advice.