Very Bad Credit Loans UK: No Guarantor Direct Lender  2023

Are you tired of feeling disoriented and stressed out whenever unexpected expenses arise? Your finances can easily take a hit due to poor planning or unforeseen emergencies, leaving you struggling to make ends meet. 

But fear not, because we have compiled a list of top-ranking payday loan companies in the UK that offer very bad credit loans with no guarantor and instant approvals, even if you have bad credit. With their help, you can maintain a smooth lifestyle and get back on track financially. 

So why wait? Check out our recommendations below and get the money you need deposited instantly into your account.

Top UK Bad Credit Loans - No Guarantor

You can easily access a payday loan from a direct lender of your choice from this list. All you have to do is click on any of the links and proceed to apply for a loan, regardless of whether you have a bad credit history or no guarantor.

If you want more detailed information to help you make the right choice, continue reading below to have a broader view of the features offered by these UK payday loan providers.

1. Response Loans: Best for very bad credit

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If you find yourself in need of amounts between £100 and £5,000, then Response Loans is the best option to connect you to a direct lender who will finance your needs in an instant. However, if you are a new borrower, you have your limit capped at £125.

Applying to get a loan from Response loans is an easy process and the approvals are instantaneous. This is in the implementation of their same-day funding principle to allow you to cater to your needs as soon as possible.

Additionally, poor credit does not deter you from getting a direct lender on their platform. The platform is safe and privacy is ensured in all the transactions as everything happens online.


2. LoanCashNow: UK Loans with no Guarantor


If you have no cash to pay upfront fees and are in dire need of a loan, then look no further for LoanCashNow is the best in the game. Even with a bad credit score, you are guaranteed of getting the amount instantly in your account.

With a loan range of between £100 and £1,000, you can easily get a loan that will sort out your shortcomings. Their loans don't have high-interest rates, making it a favourable pick.

Furthermore, LoanCashNow offers flexible repayment periods that give you the freedom of easy management of the payments.


3. Fancy a Payday: Loan with no guarantor and good for bad credit


If you are in need of a loan and you have no guarantor, Fancy a Payday is just the right pick for you. With them, you are assured of a loan in minutes regardless of your credit score.

Get your loan without having to hassle as the application process is as easy and they have instant approvals and fast payout. With a lending amount between £50 and £5,000, fancy a Payday can help you find the right direct lender.

With a belief that bad credit should not be a hindrance to getting a loan, Fancy a Payday is sure to have your back in a time of need.

4. iCash Loans: Loans with no hidden costs


If you are looking for a commendable third party who has experience in the UK payday loans field, and who does not charge extra fees for late payments, iCash is the best. They do not apply penalties that ramp up the value of the loans by the time repayments are made.

iCash Loans flaunt having no extra or hidden costs and very quick approvals and cashouts for the loans, which are usually between £100 and £1,000.

5. Monarch Loans: Get your loan instantly



If you are having unexpected bills and expenses and you need some cash immediately, Monarch Loans has access to one of the largest panels in the country and it only takes them a few minutes to match you to the best direct lender and approve your loan. 

Instant payouts are a feature you will get to enjoy as they understand in depth the urgency that is in lacking money.

Borrow loan amounts of up to £1,000 to meet your urgent needs with Monarch Loans and get instant approval and cash deposited directly into your account.

6. AA Loans: Highest UK loan limit

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If you are looking for a payday company that has exemplary ratings coupled with low and suitable rates for the members then AA Loans is perfect for you.

With a maximum lending amount of £40,000 that you can get instantly and a repayment period that can span 5 years, you are sure that all your financial needs can easily be met by AA Loans.

Furthermore, the borrowing has no arrangement fees needed and the repayments are flexible as you can even make monthly installments. AA Loans has to be what you are looking for.

Understanding the Eligibility Criteria for Very Bad Credit Loans Direct Lenders in the UK

For you to qualify for a payday loan in the UK, there are some requirements that you must satisfy. They are:

  • You must be a UK citizen or permanent resident.
  • You must be at least 18 years old.
  • You must have a bank account.
  • You must have a monthly income.
  • You must have contact information such as an email and phone number.

The approval rate for these loans is very high as all these qualifications are easily met by a good number of borrowers who need instant cash. As a result, applying for a payday loan is easy and approvals are instantaneous.

It is however good to note that most of the lenders will only approve the loan if your income, which ought to be from a verifiable source, is at least £800.

Step-by-Step Guide to Applying for a Payday Loan in the UK

Applying for a payday loan has never been easier. For instance, applying for one only takes 5 steps and the rest is waiting for approval. The ease and swift application are attributed to the fact that all the procedures are done online as opposed to the conventional ways that involve a lot of paperwork. Below are the steps to apply for a payday loan in the UK:

  • Choose a payday loan company of your liking.
  • Fill out the online application.
  • Upload the requested documents.
  • Submit your application.
  • Wait for the approval message.

It is important to note that the loan approvals might vary in terms of the time taken to approve and make the deposit in the accounts. The periods vary from a couple of hours to more than a day if the loan request is made after business hours.

Another important aspect to consider while applying for these payday loans is, as much as they are easy to apply for and have a high approval rate, some may fail to get to the approval stage since any of the aforementioned requirements are not met.

Understanding How the Direct Lender Loans in the UK Function

The basic principle behind a payday loan is borrowing to repay once your income hits your account. It is in line with this principle that having a verifiable source of income is a mandatory requirement for a payday loan to be advanced.

The broker companies have mechanisms whereby, once you make the loan application, the advanced systems will automatically determine whether you meet all the requirements, which if you do, you will be matched with a direct lender who will then inform you of your approval. Once the approval is confirmed, the lender will deposit the amount in your bank account.

The various lenders have different repayment plans which are relative to the loan amount and the agreement with the borrower. Late payments may attract penalties whilst early payments will significantly reduce the borrowing cost.

Criteria Used to Rank the Best Very Bad Credit Loans In the UK

About to be discussed in this section of the article is how we arrived at the above ranking for the best payday loans in the UK, regardless of bad credit scores.

Company history and reputation

To begin with, we verify the legitimacy by checking that they are authorized by the Financial Conduct Authority (FCA) to legally operate in the country. This is done to protect the end-consumers from predatory payday loans that look forward to exploiting innocent users.

A further step is taken to scour the entirety of the online history and reputation. The positive reviews have to outweigh the negative ones. On top of that, the negative comments and reviews are looked into to establish whether there is a scandal that the company has or had an involvement in.

Eligibility Requirements

We make sure that the eligibility requirements are minimal and similar to the ones mentioned above. An important aspect of eligibility such as bad credit may however vary from one company to another. Nevertheless, most of them are not keen to check credit scores but rather focus on the source and amount of income received at the end of the month. As a result, you find that you can still get a loan even if you have bad credit.

Software and Processing System

Bearing in mind the fact that a faulty system would make it impossible for clients to have the instant approvals that payday loans provide, a company must have state-of-the-art software and a processing system.

Consequently, we ensure that all the brokers have systems that are backed by the most recent upgrades available. This is done to be sure that the lenders they work with approve the loans instantly after all the requirements are met.

Approval rate

We check to ascertain the approval rate of our suggested brokers is the highest in the entire industry to guarantee you get your money as soon as you need it provided you have met all the requirements.

It is however worth mentioning that the companies mentioned have varying approval rates among themselves.

Cost of the loan

It is critical to understand that payday loans are costlier relative to other loans. The high cost is attributed to the high levels of risks that are attached to it. Regardless of this, we perform checks to affirm that all the brokers on our list have costs that are approved and regulated by the standards of the FCA.

In light of this, you can be assured that the brokers we recommend have regulated interest rates and fees, and if anything, we have selected the companies with the cheapest services.

Loan limits

Payday loans do not have a very high loan limit as other loans are fit for that purpose. Be it as it may, our recommended brokers have the highest loan limits in the market this year and so you can be sure of getting the ideal sums to offset the cash balance needed.

Repayment terms

We emphasize flexible repayment terms to be agreed upon between the lender and the borrower to see to it that the terms are favourable. Some of the factors in the terms are the exact payments to be made, the payment schedules, the total loan cost and the implications of late or early repayment.

Generally, early repayment translates to a lower cost while late repayment leads to penalties. That being the case, our recommended brokers often get a solution whenever you cannot make timely payments.

Customer support

Since high-quality customer support is paramount for the best experience, we recommend brokers that can look into your issue and solve it as fast as humanly possible.

As a result, we authenticate the availability of numerous channels of communication such as phone, live chat, and email, from which issues can be raised. That being the case, we put the channels to the test of how they handle the various issues raised to see how well the issue is tackled to affirm suitability.

Once all the above conditions are met by a broker, they then qualify to be on our list of top-ranked payday loan companies.

The Advantages and Disadvantages of Using Payday Loans in the UK

Payday loans have pros and cons that tag along with them. Here, we will give unbiased pros and cons that will further enlighten you and guide you to making a good decision about them.

Advantages of Very Bad Credit Loans in the UK

Listed below are some of the advantages of our recommended payday loans:

  • Solve any type of emergency or last-minute expense thanks to instant approvals.
  • Get access to funding even if you have a bad credit score or fresh credit history.
  • You can use the money from the payday loan as you please.
  • Minimal requirements.

Payday loans provide a flexible and accessible solution for those in need of quick funding regardless of bad.

Disadvantages of Payday Loans in the UK

Even though the pros are captivating, it is important to consider the downside to refine the decision-making process. The following are the cons:

  • They have a higher interest rate when compared to other types of loans.
  • You can request only small amounts up to £1,000 in most cases.
  • Severe penalties when you don't pay on time.

From the above listings, it is crystal clear that the pros outweigh the cons by far provided you are timely with the repayments.

Is a Payday Loan the Right Choice for You?

Yes. It is, but only if you are sure of paying as soon as you get your paycheck.

The fact that you have a list of reputable payday loan companies ought to make things easier for you.

What Are the Alternative Options When Your Payday Loan Application is Declined?

The following are the steps to follow in this event:

  • Get a source of income that is certified  – Failure to verify the source of income is the main reason why payday loans are not approved and so, to avoid such, attach a verifiable source.
  • Choose the most appropriate lender – borrowing from a lender that has requirements that you do not meet will be a reason for failure to approve your payday loan. In this case, look for another suitable lender.
  • Enhance your credit score – Improving your credit score will not only allow you to get payday loans but also other loans, all at better conditions that include lower fees and interest rates.
  • Contact your lender – reaching out to the lender via various communication channels could help you know the reason for the denial of the loan and as a result help you correct that in the next application.
  • Avoid requesting excessive amounts – Be sure to request amounts that are well within your borrowing limits.


Below are some of the answers to some of the most frequent questions asked regarding payday loans. If you're interested in knowing more about the ranking of the payday loans mentioned in this article, read on.

When should you apply for a payday loan with instant approval?

When you need money for a last-minute emergency or when other types of funding are not available to you due to fresh credit history or issues with your credit score. In these scenarios, a payday loan can bring you the relief you need right now.

Do payday loans in the UK with instant approval require a credit check?

Yes, our recommended brokers are likely to perform a credit check when evaluating your application. However, it is not a decisive factor, because the most important aspect is proving that you have a verifiable source of income. That's why our recommended options like Response Loans are willing to bring you a payday loan even if you have bad credit.

Can you get a payday loan with instant approval with bad credit?

Yes, our recommended company Monarch Loans is ready to bring you a payday loan with instant approval even if you have a bad credit score rating. Our companies take into account your monthly income, possible assets and employment/education, and not only your credit score, making it easier for you to get a loan approved, even if you have bad credit as of now.

Can you get a better payday loan with a good credit score?

Of course, the better your credit score is, the better the conditions will be. For example, if your credit score is good enough, then the lender will bring you access to a better APR and massively increase your chances of getting your application approved. Furthermore, they might even offer you other products with higher limits, better repayment terms and additional benefits.

Can you repay a payday loan early?

Yes, our recommended brokers allow you to repay your payday loan early without penalties or extra fees. However, make sure to read your contract to be aware of all the details regarding paying back the payday loan early.

What happens if you don't pay back a payday loan?

If you don't pay the payday loan on time, then you will have to face severe penalties such as late payment fees, and this will also decrease your credit score rating. Therefore, before requesting this loan, make sure that you can pay it back to avoid problems that will only affect your finances negatively.