TL;DR - Quick Answer
Payday loans are a red flag for most high street lenders, especially if used in the last 12 months. However, specialist lenders may accept applicants with payday loan history, particularly if it's over 12 months ago and you've demonstrated better financial management since.
Key Points
- Payday loans in last 12 months severely restrict mainstream options
- Over 12 months ago is viewed more leniently
- The number of payday loans matters - one is very different from ten
- Specialist lenders may overlook older payday loan history
- Demonstrate improved financial management since
- Full disclosure is essential - lenders can see your credit file
Lender Examples
How different lenders approach this scenario
| Lender Type | Accepts | Notes |
|---|---|---|
| High Street Banks | No payday loans in 3-6 years | Very strict, often automatic decline |
| Building Societies | None in 12-24 months | Case-by-case for older history |
| Specialist Tier 1 | None in 12 months | May accept older history |
| Specialist Tier 2 | Case-by-case | Higher rates, must explain circumstances |
| Adverse Specialists | Recent considered | Focus on current affordability |
Frequently Asked Questions
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