Credit Building > Which direct lenders offer fast £100 loans?

Which direct lenders offer fast £100 loans?

Wollit Team3 minute read · Updated 3rd July 2024

In times of financial need, a small loan can provide a quick solution to cover unexpected expenses, bridge a short-term gap, or even pay a bill so that you don’t ruin your credit score.

If you need a £100 loan, there are many ways to quickly get this amount of cash. However, not all options are the same—read more below.

What are the eligibility criteria for a £100 loan?

To qualify for a £100 loan, you must meet certain eligibility criteria. The usual requirements include being at least 18 years old, a current UK resident, employed full-time or part-time (including being self-employed), and having a valid bank account.

Because the amount is relatively small, many lenders accept even people with poor or no credit history. However, if this is you, the terms won’t be great – expect high interest rates, short repayment terms, and many hidden fees.

Which direct lenders offer £100 loans to people with bad credit?

If you need a £100 loan quickly, here are some of the largest websites you can check out:

WageDayAdvance: A broker, it can connect you with lenders offering loans from £100 to £5,000 with same-day payouts.
New Horizons: Specialises in small loans for bad credit, providing £100 loan options.
Fast Loan UK: Provides short-term loans of up to £800 for new customers and £2,000 for returning customers.
My Quick Loan allows borrowing from £100 to £5,000 over 3 to 36 months, with same-day payouts.
Growing Power UK: Offers £100 loans repayable over 3 to 12 months.
Sunny Loans: another direct lender. If they can’t lend to you, they will refer you to other direct lenders (so it works a bit like a broker sometimes, too).
CashLady: A broker specialising in loans for bad credit borrowers, including £100 loan options.
Lending Stream: Considers bad credit and offers online borrowing of £100 if approved.

Some of these websites are direct lenders, and others are brokers. Make sure you carefully review multiple offers to make the best decision for you.

The key is to use a reputable, FCA-regulated lender that specialises in small, short-term loans and make sure that you can repay these loans on time and in full.

Which lenders offer £100 loans with no credit check at all?

None of them.

That’s because all lenders need to do a credit check in the UK. Be cautious of any lender claiming to provide a money loan with no credit check.

What is the usual interest rate for a £100 loan in the UK?

The interest rates on one of these loans can vary quite a bit depending on the lender and your personal situation.

Here are some examples from the websites we shared above:

WageDayAdvance: Representative APR (what at least half of the applicants get) is 79.5%.
New Horizons: Representative APR is 49%.
Fast Loan UK: Representative APR is 840.75%.
My Quick Loan: 79.5%.
Growing Power UK: 498.8%.
Sunny Loans: 89%
CashLady: 79.5%
Lending Stream: 1333%.

Here are a few things you need to keep in mind about these rates:

They’re obviously very high. This is partially because the lenders perceive “bad credit” applicants as riskier and partially because a £100 loan is meant to be repaid quickly, usually within a month. You’re not supposed to “roll over” such a loan.
The representative APR is what more than half of loan applicants are offered. But you might be offered a better or worse rate, depending on your situation. For example, many of these websites mention that rates vary between a low APR of 12.9% to a whopping 1721% APR.

In other words, you must review each lender’s terms and conditions carefully to understand how much you’re expected to pay back.

What are the alternatives for a £100 payday loan?

£100 might not sound like a lot, but if you’re in a tough situation, it can make a difference. However, taking an extremely expensive and risky loan to cover a £100 expense should be your last option.

Here are some better alternatives:

Borrow from family and friends. There’s no shame in it. The best part is that it can help you avoid the high interest rates of payday loans. Of course, there is a risk that it would strain your relationship, so be clear on the repayment terms. Use an app that helps you manage a loan from friends and family – try Pigeon, for example.
Ask your boss for an advance on your salary.
If you are waiting for benefits, you can inquire about a short-term advance from Jobcentre Plus. This advance is typically repaid from your benefits and is also interest-free.

Another option is to use a credit card for a long, interest-free period. However, the downside is that you’ll need a good credit score to qualify.

The good news is that many apps now exist that can help you build and improve credit. One of them is Wollit.

Wollit is an app that reports a fixed fee monthly subscription as a loan repayment to all credit reference agencies. This helps you build a history of timely repayments, which is the main factor influencing how lenders see you.

Eventually, having a good credit history will help you improve your credit score. This, in turn, will enable you to afford a great credit card – the kind that can help you cover a £100 expense without worrying about triple-digit interest rates or asking your family for help.