How to Get a Payday Loan with Bad Credit
Last updated on October 28th, 2026 at 12:17 pm
To get a payday loan with bad credit and borrow £300 or £400, you will typically need to show a stable income and employment and can afford to make repayments on time.
Whilst it can be harder to qualify for certain financial products, direct payday lenders are more often willing to take a view on bad credit and CCJs provided that your situation is getting better and not worse and you have a regular and stable income to back it up.
The One Stop Money Shop – Key Features
- Borrow £400-£2500
- Repay over 6-24 months
- Direct lender
- Bad credit considered
- Fully online
- Funded same day if approved by 3:30pm
What is a payday loan with bad credit?
A payday loan with bad credit is a type of short-term borrowing intended for people who have a poor or limited credit history, with typical amounts around £200, £300 or £400.
Applications are typically online and processed and funded on the same day of approval, either completely automated or requiring proof of income.
Traditional payday loans are generally designed to be repaid around the borrower’s next payday, often in a single repayment, but today are likely to be spread over equal monthly instalments over 3 or 6 months.
Representative Example:
- £400 loan repayable over 12 months
- £65 per month
- Total amount payable £780
- Representative 295.60% APR fixed
What counts as bad credit?
There is no single credit score that defines bad credit across every lender. Credit reference agencies use different scoring systems, and lenders have their own criteria for assessing applications.
You might have a poor credit history for several reasons, including:
- Missed or late payments: Falling behind on credit card payments, loans or other credit agreements can affect your credit record.
- Defaults: A default may be registered when you have failed to maintain payments on a credit agreement.
- County Court Judgments: A CCJ can appear on your credit file following certain court proceedings concerning unpaid debts.
- High credit utilisation: Using a large proportion of your available credit may affect how lenders assess your application.
- Limited credit history: If you have little previous experience of borrowing, lenders may have less information available to assess your repayment behaviour.
- Previous financial difficulties: Redundancy, unexpected bills or changes in personal circumstances can sometimes lead to missed payments or increased debt.
Your credit file does not necessarily reflect your current financial position in full. For example, you may have missed payments several years ago but now have a stable income and manageable expenses.
This is why it is important to understand how individual lenders assess applications rather than assuming that one credit score determines your eligibility everywhere.
What is a payday loan with bad credit commonly used for?
Common uses for payday loans include:
- Pressing bills
- Paying rent
- Household repairs (roofs, toilets, boilers, leaks, flooring, washing machine)
- Paying medical bills for you or your children
- Funeral costs
- Car repairs
- Car tax and insurance
- Council tax
- Transport costs
- Emergency travel e.g see family abroad
What is the eligibility criteria with The One Stop Money Shop?
For The One Stop Money Shop, the eligibility criteria include the following:
- Age: You must be over 22 years old.
- UK residency: You must be a UK resident.
- Employment: You must be employed, either full-time or part-time, with a regular income.
- UK bank account: You must have an active UK bank account.
- Contact details: You must provide a valid mobile phone number and email address.
- Affordability: You must be able to afford the repayments after accounting for essential living costs and existing financial commitments.
Additional information or supporting documents may be required during the application process. Meeting the basic eligibility criteria does not guarantee approval.
Does bad credit automatically mean you will be declined?
No. A poor credit history does not necessarily mean that every lender will decline your application.
Different lenders use different assessment criteria. Some may place greater emphasis on your credit history, while others also consider your current income, employment and expenditure.
However, having bad credit does not guarantee that you will qualify for a loan. Lenders must consider whether lending is appropriate and whether you can afford the repayments.
What information do you need when you apply for a payday loan with bad credit?
When applying for a loan, you may need to provide information such as:
- Your personal details and residential address.
- Your employment status and income.
- Your regular household expenses.
- Details of existing credit commitments.
- Your bank account details.
- Any supporting information requested by the lender.
Providing accurate information helps the lender assess your circumstances. You should never exaggerate your income or leave out existing financial commitments to try to improve your chances of approval.
How much does a payday loan with bad credit cost compared to other types of loans?
The table below compares common borrowing options and provides an illustrative repayment example for £300 over 90 days.
| Option | How fast you get the money | How you repay | Typical cost | Credit check? | Repayment for £300 over 90 days |
|---|---|---|---|---|---|
| Same day instalment loan | Same working day if approved before the cut-off | Monthly, over 6–24 months | 0.8% per day, 272% APR | Yes | £345 |
| Payday loan | Same day or next working day | Usually one repayment on payday | 0.8% per day, 272% APR | Yes | £345 |
| Arranged overdraft | Instantly, if already in place | Flexible, as money comes in | Varies by bank, often around 35%–40% APR | Yes, when applying for an overdraft | £328 |
| Credit card cash withdrawal | Instantly at an ATM | Monthly minimum payments | Cash fee plus high interest | Credit checks generally take place when applying for the card | £337 |
| Credit union loan | Often 1–5 working days | Monthly | 36% APR | Yes | £310 |
| Salary advance | Often within minutes | Deducted from your next pay | Small fee per withdrawal, where charged | Usually no traditional credit check, but provider checks may apply | £303 |
| Guarantor loan | Usually 1–3 working days | Monthly, over 1–5 years | 49.9% APR | Yes, on both people in many cases | £310 |
Can I receive funds on the same day?
Yes, if your application is approved and the required checks are completed, funds can usually be transferred on the same working day when final approval is completed by 3:30 pm. See same day loans for more information.
The One Stop Money Shop offers an online application process designed to be straightforward and . An initial decision is typically provided after the application has been submitted, although further checks may be needed before a final decision is made.
The actual timing can depend on your application, whether additional information is required, when approval is completed and your bank’s processing times. Applications made during weekends or bank holidays may take longer.
Can I get a payday loan with no credit check?
If you have bad credit, you may be tempted to look for a payday loan that does not involve a credit check.
However, a lender still needs to assess whether you can afford to repay the money you borrow. Credit checks and affordability assessments help lenders understand your financial circumstances and make responsible lending decisions.
The One Stop Money Shop carries out credit checks as part of its application process. An initial soft search may be used to assess eligibility, with further checks potentially required as the application progresses.
A soft search is different from a hard credit search and does not affect your credit score in the same way. Check the lender’s current application information to understand which searches may be carried out and when.
Why choose The One Stop Money Shop for payday loans with bad credit?
Direct lender since 2005: We assess and fund every loan ourselves
FCA authorised: The One Stop Money Shop Ltd is authorised and regulated by the Financial Conduct Authority, registration number 713424
Quick decisions: Most applications are decided within one to two hours
Same-day payouts: Loans fully approved before 3:30pm are usually paid the same working day
Borrow £400 to £2,500: Based on your income and affordability
Spread the cost: Repay in equal monthly instalments over 6 to 24 months
Bad credit and CCJs considered: We look at your current circumstances
Free to apply: There are no fees for applying
What are alternatives to payday loans with bad credit?
A payday loan is not the only way to manage an unexpected expense. Depending on your circumstances, a credit union loan may offer a lower-cost alternative, while an arranged overdraft could help with a temporary cash-flow problem.
Some employers also offer salary advances, allowing you to access part of your earned wages before payday, although fees may apply and you will have less money available on your usual payday.
If you are struggling to pay a bill, contact your creditor to discuss a possible payment arrangement, an extension or other support before taking on additional debt. You could also contact your local council to find out whether financial assistance is available for essential costs.
Alternatively, borrowing from family or friends may be an option if everyone involved is comfortable with the arrangement. Agree on the amount, repayment date and any other conditions beforehand to avoid misunderstandings. Whichever option you choose, compare the costs, consider the impact on your budget and make sure you can afford any repayments before committing.
FAQs
How much can I borrow with a payday loan with bad credit?
At The One Stop Money Shop, eligible applicants can apply for between £400 and £2,500, with repayment terms of 6 to 24 months.
The amount you may be offered depends on factors including your income, employment, credit history, existing financial commitments and affordability assessment.
Will applying impact my credit score?
The One Stop Money Shop uses an initial soft credit search to help assess eligibility. A soft search does not affect your credit score in the same way as a hard credit search.
Do you charge any fees for applying?
No, The One Stop Money Shop does not charge an upfront fee simply for applying for a loan.
If your application is approved and you decide to proceed, the interest rate, repayment schedule and total amount repayable will be explained in your loan agreement.
What happens if my loan application is declined?
If declined for a loan application, nothing will happen – no fees are charged, no impact to your credit score and no further action is required. However, it is recommended to avoid making lots of applications with different lenders in a short space of time. The information is recorded on your credit report, and whilst not negatively, having lots of applications too fast can make you appear desperate or may look fraudulent.
Do I need a guarantor to be eligible?
No, you do not need a guarantor to apply for a standard loan from The One Stop Money Shop.
A guarantor loan is a separate financial product in which another person agrees to take responsibility for the debt if the borrower cannot make the repayments, subject to the terms of the agreement.
Can you apply if you are self-employed?
Currently, we are not accepting borrowers that are self-employed or sole traders unless they are part of a limited company that has been trading for a few years.
Can I apply for a loan with a CCJ?
Yes, you can apply. The One Stop Money Shop considers applications from people with a history of adverse credit, including applicants who have experienced CCJs.
If you have a CCJ, it is worth checking your credit report to understand the information recorded about you. You should also consider whether taking on additional borrowing would put pressure. See CCJ loans for more information.
What happens if I cannot repay my loan?
If you think you may struggle to make a repayment, contact your lender as soon as possible.
Missing repayments –, additional interest charges and a negative impact to your credit score.
If you are experiencing financial difficulties, consider seeking free, impartial advice from organisations such as StepChange, Citizens Advice or MoneyHelper. They can help you understand your options and work out how to manage your debts.
