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A bad credit loan in the UK is defined as borrowing money despite a poor credit rating. These are small personal loans that have a short repayment period. Depending on the amount you are borrowing, the loan may be repaid within a period of days to months. If you take out these loans for emergency purposes with a promise to pay it on your payday, they are called payday loans that do not have a repayment length of more than 14 days. These loans are also known as doorstep loans when you borrow money despite having no functional bank account. They can be paid back in weekly installments or in a lump sum.