Small Loans UK – Bad Credit Accepted

Little Loans is a credit broker, and we could help you search for a small loan between the value of £100 and £10,000 with repayment terms from 3 to 60 months, depending on the amount of money you apply to borrow.

What is a small loan?

As the name suggests, a small loan is a sum of money borrowed from a lender. It’s important to bear in mind that everybody’s idea of a ‘small’ amount of money will vary. For example, £100 might not seem like a lot to one person, whereas to somebody else, it could be a real lifeline in the event of a financial emergency.

What can I use a small loan for?

People may search for a small loan to fund the following expenses:

• Urgent car or home repairs.
• A replacement of a vital home appliance, such as a fridge, boiler, or washing machine.
• An unplanned bill; or
• Veterinary fees.

A small loan should never be seen as a long-term financial solution, and you should always spend responsibly. You should never borrow more money than you need or can afford to repay.

What types of small loan are available?

A small loan could come in the form of a range of different loan types.

• Small payday loan
  A payday loan will typically be required to be repaid in full within a month and could come with a high rate of interest.


• Small short-term, personal loan
  A short-term loan offers an extended period of borrowing in comparison to a payday loan.


• Small guarantor loan
  A guarantor is somebody, usually a trusted family member or friend, who agrees to ‘vouch’ for you when you apply for a loan. If you find yourself unexpectedly able to repay your loan, your guarantor will be responsible for stepping up and covering the cost. A guarantor loan could be an option to consider if you have poor credit history.

Please note that the lenders on the Little Loans panel offer personal, short-term, unsecured loans. We do not work with any lenders of payday, guarantor, or secured loans.

Who can search for a small loan with Little Loans?

You can use Little Loans to help you search for a small loan if you:

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

Can I get a small loan with bad credit?

You could get a small loan, even if you have bad credit. Several of the lenders on the Little Loans panel specialise in loans for people with poor credit history, although if you are approved for a small loan with bad credit, you could be offered a higher rate of interest.

Can I get a small loan with no credit history?

A ‘thin’ credit file is when you have no credit history to show. This usually occurs if you’ve never paid bills or borrowed credit before and can negatively impact your chances of being approved for a loan.

Here at Little Loans, we work with a number of lenders who are willing to consider applications from people with no credit history, although again, it’s important to be aware that you might be presented with a higher interest rate.

Choosing a repayment term for your small loan

The amount of money you apply to borrow, and how long you choose to borrow it for, will have an impact on the overall cost of your small loan.

We’ve included the key difference between shorter and longer terms in the table below.

When deciding on a loan term, you should weigh up whether a shorter or longer term is more suitable for your financial situation. The most important thing to consider is the cost of monthly repayments; you’ll need to be sure that you can afford to make these in full and on time each month without impacting your other financial commitments, such as rent or mortgage, bills, and food.

How much will a small loan cost?

The overall cost of a small loan will depend on the following:

• The amount of money you apply to borrow.
• How long you choose to borrow it for.
• The interest rate you’re offered; and
• Any standard fees associated with the loan.

When looking for a small loan, you should take note of the Annual Percentage Rate (APR). This reflects the yearly cost of the loan. The APR does not include any additional fees, such as late repayment charges.

The lower the APR, the lower the overall cost of the loan.

How to apply for a small loan online

Not sure where to start when looking for your small loan online? Little Loans is a credit broker, and we could help you search. Our straightforward application form can be completed online and should take no longer than five minutes to fill out.

1. Tell us how much money you need to borrow and choose a repayment term.

2. Using the information provided on your form, we’ll run a soft search with no impact to your credit score and scan our panel of over 30 lenders for a suitable loan. This should take just 60 seconds.

3. If you’ve been matched with a loan, you’ll be redirected to the lender’s website. Here, you can find out more about the loan and decide whether you’d like to make a full application.

4. At this point, the lender will carry out a creditworthiness assessment, which will include a hard search or Open Banking. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time will have a negative impact on your credit score.

5. If the lender is happy with the result of the creditworthiness assessment, you’ll formally be offered a loan.

Important: you will be sent a loan agreement, which will contain your terms and conditions and repayment schedule. You should take the time to read through this carefully before you decide whether to sign and return the agreement.

Can I get a small loan without a creditworthiness assessment?

In the UK, it is not possible to get any type of loan without a creditworthiness assessment. This is in line with Financial Conduct Authority (FCA) guidelines. These checks are in place to help reduce the risk of the borrower falling into financial hardship and a potential spiral of debt.

As mentioned in the section above, a creditworthiness assessment will consist of either a hard search or Open Banking. Open Banking is a secure procedure used by a number of the lenders on our panel. With your consent, Open Banking enables your chosen lender to access your online bank account with a read-only view. Viewing your recent spending and repayments could offer a deeper insight into your current financial situation, rather than relying on your credit history alone to make their decision.

Who should I contact if I have a question?

If you have a question about the loan search that you carried out on little-loans.com, you’re more than welcome to make contact with our friendly team. They’re available from Monday to Friday, between the hours of 9am and 5pm.

If your query relates to the loan that we found for you, you’ll need to contact the lender directly. You can find details of each of the lenders of our panel here.

What happens if I default on a loan repayment?

Making a late repayment, or missing one together, will cause your credit score to decline, and you could be charged a fee by your lender.

If you’re struggling to make your repayments, you should reach out to your lender as soon as you can. Asking for support can feel frightening, but please remember that your lender is there to help you, and they will not judge your situation.

Are you worried about money?

Money can sometimes feel like a taboo, and many of us might feel uneasy when discussing our finances with somebody we know.

If you’re worried about your financial situation, please know that you can access free, confidential advice on a range of money and debt topics through the following charities and organisations: StepChange, MoneyHelper, Citizens Advice, and National Debtline.