The best and easiest way to get approved for a loan in the UK is through one of the many approved lenders that are available.
There are a variety of loans available, from short-term loans to long-term loans, and each has its own specific requirements that must be met in order to be approved. It is important to understand the terms and conditions of the loan before applying, so that any potential financial issues can be identified and addressed early on.
Minimum Credit Score For Personal Loan UK
Personal loans are a terrific method to receive quick cash, but you must have a strong credit score to get accepted. The following is the minimum credit score for personal loan applications in the United Kingdom:
In the United Kingdom, a credit score of 620 is necessary for personal loan applications. This implies that if your credit is less than spectacular, you may be unable to obtain a personal loan. However, several simple strategies exist to raise your credit score and get approved for a personal loan.
For example, you may quickly create a solid credit history by paying your payments on time and keeping your debt levels low. If you have poor or no credit, consult with an approved lender or debt counseling program to see if they may assist you in rebuilding your credit history.
How to Get Approved For Loans In the UK
There are a few steps you can take to increase your chances of approval for loans in the UK.
1. View your Credit File
Credit checks are the first step in enhancing your chances of being accepted for an individual loan. In the United Kingdom, the three major credit reference companies (Experian, Equifax, and TransUnion) gather and keep financial data on you to assist lenders in determining whether you should be authorized for loans. CRAs usually keep financial information for everyone going back 6 years, and over time, information that is more than six years old becomes less relevant.
2. Address and Clean Up Issues on your Credit File
Check your credit report for mistakes and take prompt action if you find any. All leading credit reference companies accept mistake challenges submitted online, by phone, or by mail.
In addition to ensuring that your paperwork is error-free, it is critical to strive toward debt payback. Attempt to pay down debts to enhance your credit utilization percentage and demonstrate a consistent payment history. When feasible, it is paying more than the minimum is a good idea.
3. Work to Boost your Income and Reduce your Debt
Before asking for a loan, increase your income and minimize your debt. Loan applications require proof of yearly income, but it’s vital to understand that you can include extra money received legitimately from part-time work.
While it’s easier said than done, beginning a side hustle, finding a second part-time job, or working toward a raise at your existing employees can all improve your chances of loan acceptance.
Paying off your outstanding obligations, on the other hand, will play a part. These efforts aim to enhance your debt-to-income ratio, demonstrating to lenders that your current debt level is reasonable and strengthening your case for approval.
4.Only Ask For What You Need
This suggestion may appear obvious, but it is vital to consider the amount of money you wish to borrow. In most cases, you must inform the lender what you intend to spend the funds for throughout the application process. Lenders may see your application as having higher risk elements if you request more money than is required for the stated purpose.
Requesting more money from a loan can result in larger monthly repayments, which might burden your budget.
5. Use a Cosigner for Better Chances of Acceptance
If you fear that your credit score or financial position may be a barrier to loan acceptance, you can add a cosigner with strong credit to your application. A cosigner is equally liable for repaying the loan balance, implying that they must make repayments if you cannot.
As a result, finding a cosigner who can step in and help if things go wrong is crucial, such as losing a job or experiencing another terrible life event.
It’s critical to have open communication with your cosigner and ensure they understand the repercussions.
6. Evaluate and Select the Right Lender
Another critical step in acquiring a loan is choosing the correct lender for your financial circumstances. While the leading high street banks may appear to be the most excellent alternative, they are known to be more stringent on loan applications.
If you have a less-than-perfect credit history and want extra assistance in borrowing, broadening your loan search to borrow money from a credit union might be advantageous.
10 Best Easy To Get Loans Direct Lenders In the UK
If you’re looking for easy and quick loans, direct lenders in the UK are a great option. They offer competitive rates and are generally reliable.
1. THL Direct
A daily interest rate of 0.8 percent means that THL Direct offers short-term loans ranging from £125 to £500. There aren’t any up-front or late fees, interest, or default expenses to worry about. Only £125 is available to first-time borrowers, and THL Direct puts money directly into your bank account without needing further steps. Weekly or monthly repayment options are also available.
Amount: £125 to £500
Duration: three months
Rates: 292 percentage
Example: A £200 loan spread over three months (83 days). The fixed annual interest rate of 292 percent Credit costs £113.08. Monthly payments are as follows: £104.36, £104.36, and £104.36. The total amount owed: £313.08
2. Sunny
Sunny has a 9.1 Trustpilot rating and provides loans ranging from £100 to $2,500. You save interest and have five days to change your mind if you receive your refund early. They have a customer care staff situated in the UK that is available seven days a week.
Amount: up to £2500
Duration: 12 months maximum
Rates: based on 292 percent
Example: A £100 loan was taken out for 6 months—the fixed annual interest rate of 292 percent 6 £33.13 repayments. The total sum owed is £198.75.
3. Lending Stream
It was founded in 2008, giving short-term loans with six-month repayment terms. Their consumers come from around the United Kingdom, and the average age is 32.
They do not, however, provide payday loans since they believe that if the loan is not paid back on payday, the consumer would be in even more debt. Individual scenarios, intelligent data analytics, and essential credit scores are all considered when approving loan applications.
Amount: up to £1500
Duration: up to 6 months
Rates: based on 292 percent
Example: A £200 loan was taken out for 6 months. The fixed annual interest rate of 292 percent is £64.44 in 6 installments. The total sum owed is £386.61.
4. The Creditstar UK
Creditstar is a payday loan firm that claims to process applications in less than 10 minutes and approve them in less than an hour. First-time users can borrow up to £300, while recurring borrowers can borrow up to £700, repayable over 6 months.
Amount: up to £700
Duration: 6 months maximum
Rates: by 274 percent
As an illustration: Credit amount: £300 spread over four months. £170.45 in interest The annual interest rate is 274 percent (fixed). Repay in four installments: The first payment was £142.50, the second payment was £125.63, the third payment was £109.88, and the fourth payment was £92.44. The total sum owed is £470.45.
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5. Myjar
Short-term loan firm Myjar has a very appealing website. The company has given out over 2 million loans and loaned over £500 million to happy customers since its establishment in 2008.
It gives people the option to borrow money based on how much they can afford to pay back. Loan terms range from three months to two years, with a range of £900 to £7200. They have a rating of 9.1 out of 10 on Trustpilot.
Amount: up to £2000
Duration: 12 months maximum
Rates: by 274 percent
For example, borrow £300 for three months—a 274 percent annual interest rate (fixed). Repay in three £148.02 payments. The total sum owed is £444.06.
6. Cashfloat
There are over 100,000 happy customers of Cashfloat, a well-respected direct lender of payday loans. As a result, they focus on those who have had a bad credit history in the past and wish to repair their credit rating. For those who like to keep track of their finances and payments on the go, they also provide a cutting-edge ‘Money On Demand’ program.
Amount: up to £1500
Duration: 6 months maximum
Rates: based on 226 percent
Borrow £500 for four months as an example. The first monthly payment is £172.09. Monthly payments of £229.45 for the second and third months and £114.75 is the fourth monthly repayment. Total payback is £745.74, with a p.a. (fixed) interest rate of 226 percent.
7. Mr. Lender
Mr. Lender has a Trustpilot rating of 9.6 and is a competitive short-term loan business. At the 2018 Consumer Credit Awards, they were recognized for their outstanding customer service by receiving the “Customer Service Champion.” To get a loan from Mr. Lender, there are no upfront fees and no late fees for missing payments. Their site is also a great place to get information on money-saving tips and ethical financing. It’s almost too unbelievable, to be honest!
Amount: up to £1000
Duration: 6 months maximum
Rates: based on 292 percent
Representative example: Borrow £200 for 6 months, return with 6 payments: payment 1 – £81.33; 2 – £73.23; 3 – £65.13; 4 – £57.33; 5 – £49.24; 6 – £41.14. The total repayment is £367.40. The annual interest rate is 292 percent (fixed).
8.QuickQuid
Pounds to Pocket’s lending partner, Quick Quid, focuses on short-term loans, and Preapproved loans can be obtained in only a few minutes. Previously absent on other lending websites, the live online chat feature is available to customers who require assistance or support.
During regular business hours, this can be accessed Monday through Sunday. When you use Quick Quid, you can rest confident that your sensitive data is protected by a Secure Socket Layer (SSL).
Amount: up to £700
Duration: up to three months
Rates: by 274 percent
9. Piggy Bank
Piggy Bank is a lending service that provides small, short-term loans. There is a FAQ section on their website that covers the most common questions and difficulties.
The company offers a payment reminder service if you fail to pay your loan on time and want to save money on interest. Their customer care department is open Monday through Saturday during regular business hours.
Amount: up to £1500
Duration: up to five months
Rates: based on 282 percent
10. Peachy
People looking for short-term loans between £100 and £1000 might use Peachy, a direct lender. Any mobile device or desktop computer with an internet connection may be used to submit an online loan application. Most loans are disbursed within an hour, and it is possible to get a short-term loan for up to 12 months.
Amount: up to £1000
Duration: 12 months maximum
Rates: by 274 percent
FAQS
Which App Gives Loan Instantly UK?
Creditstar Loans is a platform that links borrowers with lenders offering low-interest loans. The application procedure is online, and filling out an application form takes less than ten minutes. Payday loans, unlike traditional banks, offer liberal qualifying conditions.
Which Bank Is Easiest To Get A Personal Loan From?
Wells Fargo and USAA is the easiest bank to receive a personal loan from.
How Can I Get A Quick Loan UK?
If you meet the following criteria, you may be qualified for a fast loan:
- Are over the age of 18.
- You live in the United Kingdom.
- Have a steady source of revenue.
- Have your earnings deposited directly into your bank account.
- You must have a bank account and a valid debit card.
Do Payday Loans Still Exist UK?
Payday loans are available through various means, including online and in-person lenders.
Do Payday Loans Check Your Bank Account?
Yes, a mortgage lender will review any depository accounts on your bank statements, including checking and savings accounts and any open lines of credit.
In rare situations, a lender may need your bank account number to determine where to deliver loan cash after your application has been granted. Some online lenders may need you to link a company bank account to assess and verify your revenues to determine whether you qualify for an online loan.
Is Payday UK A Direct Lender?
Payday UK is a direct lender, meaning the company does not partner with any third-party lenders.
Conclusion
If you are looking for easy loans to get approved, these 10 best loans to consider in the UK in 2022 are a great place to start. Whether you need a small personal or a large business loan, these loans will have you approved.
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- I’m a firm believer that information is the key to financial freedom. On Coindecimal Blog, I write about personal finance and crypto.
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