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

£100 Loan – How to Borrow Hundred Pounds

Need a £100 loan to cover a financial emergency or unexpected bill? What if you have a poor credit rating and you need the money now – not in a few days' time?

Subject to status, you may be able to borrow £100 and then repay the loan over either three, six, or twelve months.

Will I be approved if I have a bad credit rating?

Many companies offering £100 loans were set up specifically to service people who have a bad credit history.

These firms still must carry out credit checks on the people who apply to them for a £100 loan. However, although your credit score is important to them, what makes them different is that they're also very interested in how you're doing right now financially, and they take that into consideration as well when coming to a decision about your application.

Please note that no lender can guarantee in advance that you'll be approved for a loan prior to a hard credit search being run and an affordability assessment being completed.

£100 no credit check loans - are they available?

No credit checks loans are not available as they're not authorised by the Financial Conduct Authority. Any company offering a guaranteed £100 loan without a credit check is unlikely to be authorised. For your own peace of mind, always check the FCA register.

Did you know that there are two different types of credit search?

Let's compare how a soft credit search and a hard credit search are different from each other and why that’s important.

Soft credit search

Soft credit searches are used by lenders and other finance companies to provide them with an indication on how successful your request for a loan is likely to be.

Only you and the company performing a soft credit search can see a record of the search on your credit file. Soft credit searches do not affect your credit score.

Hard credit search

Hard credit searches are run by finance companies every time you make a full application for a loan. While soft searches give a lender an indication on your eligibility, it's what they find on a hard credit search of your file that they actually use in their decision-making process.

Hard credit searches are recorded on your credit file and they can be seen by every other company you might apply to for a loan.

If there are too many hard searches within a short space of time on your report, a lender might think that you're having difficulty managing your finances - it might actually put them off from saying "yes" to you. So, if you make five complete applications to direct lenders one after the other in an effort to find the best deal, each new request for finance will actually lessen the chances of your being accepted for a loan.

Another thing to consider... some credit reference agencies may actually lower your credit score if there are too many hard searches on your file within a limited timescale.

What information do I need to give when I apply?

The application process is easy and fast - you can apply online and find out within minutes whether your application has been approved or not.

When making an online application with a lender, you'll need to answer all of their questions about your personal and financial circumstances as they are today.

Lenders will require you to them with information on your:

  • income (details on how much you earn, when your next pay day is, and so on)
  • expenditure (how much you spend every month and on what)
  • address history
  • contact details
  • banking details (bank current account number, sort code, what type of debit card you have)

£100 - lender or a broker?

Applying direct to lenders

When you apply for a £100 loan direct from a lender, they will only offer you their own financial products and deals if your request for finance is approved. Each lender will run a hard credit search on you. And remember the more hard searches on your file, the harder it may become to access the finance that you need.

Making an application through a broker

If you apply via a broker, they will match you to the lenders most likely to say "yes" to your request for a loan. They'll contact each of these lenders in turn with your details. Each one contacted runs a soft credit search on you (so no effect on your credit score). If one of the lenders approached has indicated they may accept your loan request, your broker will then re-direct you to their website for you to complete the full application form.

Once you've done that, the lender runs a hard credit search on you.

What happens if my loan is approved?

If your online application to borrow £100 is approved (either direct or via a broker), your lender will first share with you the following important information:

  • the days/dates on which they'll collect the repayments from your bank account and for how much
  • the interest rate which applies to your loan
  • the total amount of interest you'll pay over the term of the loan

They'll also display their schedule of fees. The fees you may have to pay are:

  • late payment fees - some lenders may charge you up to £15 if you fail to make a payment on an agreed date
  • early repayment fees - some lenders may charge you for settling your loan in full early.

If you are happy with the details of your loan, let the lender know by clicking the appropriate button on their website. They'll then present you with their terms and conditions of borrowing. The terms and conditions show what your responsibilities to the lender are and what their responsibilities are to you.

If you agree to the terms and conditions, please click the appropriate button on the lender's website. A new, legal borrowing agreement will then be created between you and your lender.

Payout of the funds is generally very quick. Because people needing £100 loans generally need the cash in a hurry, the funds may be in your bank account within minutes* (although it may take a few hours depending on who the lender is).

Will my loan be expensive?

Short term £100 loans for people with bad credit will generally have a higher interest rate than a loan that a borrower might receive from a bank, building society, or other financial institution.

This is because there is a higher level of risk associated with this type of products.

The higher the interest rate, the higher your monthly repayment. The interest rate you're charged will be based on the risk a lender perceives that you may default on your short-term loan.

Lenders are required to display the representative APR rates on their website. The representative APR is the interest rate they charge to 51% or more of their borrowers. If approved, the interest you pay on your loan may be at that rate, it may be higher, or it may be lower.

You can take out a short-term loan of £100 and repay it over a period of three, six, or twelve months - this is the "term" of your loan. The longer the term, the lower your monthly repayments are likely to be, but you will often end up paying more interest on the loan overall.

Warning - Late Repayment

Even if you're approved and offered a £100 loan, you should not accept it if making the repayments on your loan will put you or your family into further financial hardship.

You should ensure that the money will be available in your bank account so that your lender can collect repayments in full when they become due.

If you're in debt and you're worried about your ability to successfully manage your debt, you may benefit from the free advice and support offered by the following organisations – StepChange, PayPlan, National Debtline, the Debt Advice Foundation, the Money Advice Service, and Citizens Advice.

Apply for a £100 loan through Little Loans

To apply to borrow £100 through Little Loans, please fill in the form on this page. Our service is free and there's no obligation to accept any offer made by a lender on our panel.

The lenders registered on Little Loans' panel are all authorised and regulated by the Financial Conduct Authority for your peace of mind.

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Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. We’re a fully regulated and authorised credit broker and not a lender