Credit Building > Which direct lenders offer quick £50 loans?

Which direct lenders offer quick £50 loans?

Wollit Team2 minute read · Updated 26th June 2024

Sometimes a quick loan, even for an amount as low as £50, can be a real lifesaver if you’re facing an unexpected financial emergency.

The good news is that there are a number of direct lenders in the UK that do offer loans like these, usually for immediate financial assistance until the next payday.

Let’s look at which direct lenders offer quick £50 loans in the UK, what their eligibility criteria are, and what are the pros and cons of these loans.

What are £50 loans?

£50 loans are usually short-term, small loans that can be used to cover unexpected expenses or urgent and small financial needs.

Because of this reason, these loans are meant to be repaid quickly, usually within a few weeks or months, and are often used to bridge the gap until the next payday. Direct lenders offer these loans with flexible repayment terms, making them an attractive option for those in need of immediate financial assistance.

Which direct lenders offer quick £50 loans?

Several direct lenders in the UK offer £50 loans with quick approval and disbursement. Here are some of the largest ones:

Fast Loan UK: Fast Loan UK has a high approval rate and does not require a credit check to figure out if you’re eligible. You’ll only need to pass a credit check if you go ahead with the application. The application process is quick, and Fast Loan claims that money can be received within 15 minutes if you apply within business hours.
CashASAP: CashASAP is a direct lender that also offers short-term loans starting from as little as £50. The repayment terms range from 35 days to 6 months, and accept people who even work part-time.
Lending Stream: They offer £50 loans with an instant decision and repayment terms of up to 6 months. Just like Fast Loan and CashASAP, Lending Stream accepts applicants with bad credit as well.

One thing to keep in mind here: we don’t endorse any of these lenders. Not because there’s something wrong with them, but simply because their loans charge extremely high interest rates.

While they have to do this to account for the risk of lending to a borrower with bad credit, high interest makes their loans very risky for you. If you can’t repay the loan as soon as possible, you’ll find yourself saddled with a ballooning debt which you might not afford. This can be disastrous for your credit score.

What are the interest rates for £50 loans from the lenders who accept applicants with bad credit?

Here are the representative APRs charged by the three direct lenders we mentioned:

Fast Loan UK: 840.75%;
CashASAP: 1,266.9%;
Lending Stream: 1,333%.

These are some of the highest interest rates we’ve ever seen for any loan, period. Taking a £50 loan with these rates and repaying it after 6 months can mean that you might have to pay close to double what you borrowed.

Also, keep in mind that these rates are “representative”, meaning they’re what at least half of the loan applicants got. If your credit score is particularly poor, you might have to pay an even higher interest rate.

This is why it’s so important to focus on your credit score.

A better credit score can mean access to much cheaper personal loans. It can also mean you can get a credit card which can let you pay for a £50 emergency and repay it over a few months without paying any interest at all. You could even apply and get approved for a current account with a generous interest-free overdraft buffer. There are quite a few current accounts which let you go overdrawn for more than £50 without paying any interest for a month.

The good news is that there are many ways to improve your credit score. One of the best ones is to download a specialised credit-building tool like Wollit.

Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies.

This builds your credit history and helps you improve your credit score. Eventually, a better credit history will increase your approval chances – not only for quick personal loans, but also for other financial products, like current accounts with generous overdraft, credit cards with long 0% interest periods, and low deposit mortgages.