Christmas loans in the UK — realistic options for people with bad credit (what’s available, what it costs, and how to apply)
Short on cash for Christmas with bad credit? Here's a clear guide to 4-5 private loan options in the UK, comparing their costs and providing safe application steps.
1) Evlo (formerly Everyday Loans) — bad-credit-friendly personal loans
What it is: Direct lender that targets people who’ve struggled with credit.
Loan amounts: £1,000 – £15,000 (product dependent).
Typical costs: Representative APRs can be very high for some borrowers — Evlo publishes example APRs up to very large figures (their site shows representative examples; always check your personalised quote). Typical outcomes for high-risk files are in the higher double-digit to triple-digit APR territory.
Speed: Online quote/soft search, full approval in a day or two; funds after approval.
Who it suits: People with poor credit who need a fixed-term loan and can afford monthly repayments.
How to apply: Get a soft quote on Evlo (pre-check won’t harm your credit), upload ID and income proof, accept the offer to trigger a full application.
2) Sunny (comparison + broker for short/fast loans) — soft-search broker model
What it is: Online broker that matches applicants (including those turned down elsewhere) to a panel of FCA-authorised lenders. Sunny emphasises soft searches so you can see likely offers without a hard credit hit.
Loan amounts: Typically £100 – £2,500 for same-day/same-week small loans.
Typical costs: Vary by matched lender — expect mid-to-high double-digit APRs up to several hundred percent for very short term products once converted to APR; Sunny advertises “no fees from Sunny” but lenders’ costs differ.
Speed: Some matches fund in minutes to hours.
Who it suits: People who’ve been declined elsewhere and want a quick soft-search comparison of short loans.
How to apply: Use Sunny’s online form for soft quotes, review matched offers, then accept one which proceeds to full checks.
3) Lending Stream — short-term instalment loans (very quick but can be very expensive)
What it is: Direct short-term lender offering instalment loans for applicants including those with poor credit.
Loan amounts: £50–£800 (first-time customers), returning customers up to £1,500.
Typical costs: Lending Stream’s published representative examples show extremely high APRs in some product examples (their site lists representative APR figures in the thousands — check their representative example). This converts short-term fees into very high APR figures; always check the fixed fee schedule and total repayable.
Speed: Very fast — approvals and funds can be within minutes to a day.
Who it suits: People needing very fast small sums who accept high cost; not suitable for longer-term borrowing.
How to apply: Online application with ID, bank details and income; existing customers get higher limits.
4) Fintech short-term lenders & instalment providers (examples: Salad, Finio, similar)
What they are: A group of fintechs/online lenders offering short loans or instalment credit for smaller sums — some specialise in near-instant decisions.
Loan amounts: Often £300 – £2,000 (depends on provider).
Typical costs: Representative APRs range widely (examples in the market show anything from ~60% APR up to very high figures for the shortest loans). Always check the provider’s advertised representative APR and a concrete example for your borrowing amount.
Speed: Fast online application and funding within hours or 1–2 days.
Who it suits: People who need small loans quickly but want an online process and clearer, fixed repayments.
How to apply: Apply on the lender’s website, provide ID and proof of income/bank, accept terms.
5) Credit unions & guarantor-loan alternatives — cheaper if you can join or find a guarantor
What they are: Local credit unions and guarantor-loan products offer lower costs than most doorstep/payday lenders for people with poor credit. Credit unions have legal caps on interest (and are generally cheaper than high-cost lenders). Guarantor loans require a friend/family guarantor and can reduce APR compared with short-term lenders.
Loan amounts: Credit union loans commonly £500 – £7,500; guarantor loans vary £500 – £15,000 depending on lender.
Typical costs: Credit unions often charge far lower APRs (examples show ranges like ~12–43% APR depending on rules and region); guarantor loans can be cheaper than high-cost short loans but still vary.
Who it suits: People with a local credit-union membership (or a willing guarantor) who can wait a few days for processing.
How to apply: Contact your local credit union or a guarantor-loan provider; expect ID, proof of address and income, and (for guarantor loans) the guarantor’s details and consent.
Plain comparison (what to watch for)
Loan amount: short-term lenders = £50–£1,500; specialist personal lenders = £1,000–£15,000; credit unions = £500–£7,500.
Speed: payday/short lenders and brokers (Sunny/Lending Stream) = minutes–24 hours; Evlo/fintech/personal lenders = 24–72 hours; credit unions = a few days.
Costs (headline): can vary from high double digits to triple-digit APRs for poor-credit personal loans, to very high APRs for some short-term products (representative examples for lenders like Lending Stream show APRs in the thousands when short-term fees are annualised). Credit unions and guarantor loans often offer the lowest effective cost for borrowers with access.
How to apply — safe, practical steps
1.Work out exactly how much you need (smaller = cheaper).
2.Check cheaper options first: family/friends, 0% credit-card offers (if you can repay within the promo), or a credit-union loan. Credit unions often help members with budgeting too.
3.Use soft-search pre-checks where available (Evlo, Sunny, many fintechs) to compare likely offers without harming your credit file.
4.Ask for a full repayment schedule (total amount repayable, monthly payment, all fees). Don’t sign until you have that in writing.
5.Avoid rollovers, repeated payday borrowing or “no-credit-check” offers that hide huge fees. True “no credit check” offers are rare and typically cost a lot or require security/guarantor.
6.Compare at least three offers and read FCA warnings and MoneyHelper guidance if you’re unsure.
Final thought
A Christmas loan can help bridge a short gap — but costs escalate quickly if the wrong product is chosen. If credit is poor, start with a credit union or guarantor route where possible; otherwise use reputable brokers (soft search) and compare fixed repayment schedules before committing.