Payday loans (UK)

Stop! Warning! Please avoid payday loans until you’ve read this guide. We can show the alternatives and options to payday loans as well as the best interest rates and easiest ways to obtain a payday loan if you still want one after reading our guide. We clearly show you the benefits as well as the many pitfalls and problems with high cost credit in the UK. So let’s get started and look at what it means to takeout a payday loan.

Compare payday loans – why do it to yourself?

Compare payday loans – why do it to yourself?

How do payday loans compare? Well the truthful answer is the interest rates are less than favourable. You need to repay payday loans quickly in order that you absolutely minimise the amount of interest paid. In this example we are going to take a look at the worst possible case scenario. In 2014 the FCA set rules in place that meant interest per day should not exceed 0.8%. Since then, in January 2019 they recently released an updated document “Consumer credit — high-cost short-term credit lending data” which reiterates some of their clear rules and guidance to do with the costs of payday and short term loans.

Some of the other important rules for HCSTC price capping are:

  • 0.8% interest per day maximum.
  • £15 maximum late payment fee.
  • Loan interest must not exceed 100% the amount borrowed.

If any of these principals are violated then you are absolutely within your right to make a complaint and would probably best to start with “how to complain” from the Financial Ombudsman: https://www.financial-ombudsman.org.uk/consumers/how-to-complain .

High cost short-term credit should be a final resort and not relied on frequently. Whatever way you compare payday loans, they are expensive.

Comparing payday loans

Total Amount

Length borrowed for

Monthly APR example Representative 1266%

Loan total

Monthly repayment

£100 loan

3 months 24% £151.42 £50.47

£200 loan

3 months 24% £302.83 £100.94
Can I get payday loans with bad credit?
Payday loans: no credit check – can I get one?
What short term payday loan options are there for students?
Payday loans online
Loans: payday didn’t come quickly enough and I need help
A look at payday loan direct lenders
Can I get instant or guaranteed payday loans?
Are payday loans high acceptance?
I’m looking for the best and cheapest payday loan?
What can I do if I start to struggle with payday loan debt?

Can I get payday loans with bad credit?

If the interest rate and terms didn’t put you off, then let’s talk more about bad credit payday loans. Ultimately, you can get a payday loan with bad credit but it’s not really a bad credit payday loan. Technically it’s more about your credit score and financial position as the the level of finance and credit that you’ll be able to receive. This type of loan since its inception was always understood to support those with less than perfect credit ratings; those who may not be able to go to traditional lenders in a time of need.

Payday loans: no credit check – can I get one?

The short answer without wasting your time is no. No one is going to do a “payday loan no credit check” however much it is searched on the internet as I have highlighted. However, You can learn plenty more about why and what the options and alternatives are at the link provided. You’ll be able to make an informed decision which always leads to better financial decisions. Regulations that are fairly placed for your own protection ensure that you cannot borrow money without careful financial assessment. This ensures that in most cases repayment will be made with minimal financial disruption. Of course, there is the odd situation that is unforeseen, though this considerate and fair approach to lending helps ensure your protection.

What short term payday loan options are there for students?

When you’re looking for short term payday loans there are a few good options. Firstly you can take a look at short term loans. This is always a good start when looking for a loan. Another good choice is to look at student payday loans. Before taking up these options you might have a look at what government support you might receive prior to taking on costly short-term credit. The alternative is a potential student loan directly from the government and budgeting a little better might also help you.

Payday loans online

Payday loans online can be found very easily. Simply search Google in the UK and you’ll find plenty of options; broker; lender alike. One way of obtaining a good understanding of payday loans is to apply with many different brokers and lenders. This will help you gauge your true financial situation. The more lenders you speak with, the more likely you’ll find the right loan for you.

Loans: payday didn’t come quickly enough and I need help

There are plenty options to consider before taking a costly payday loan. One of the most sensible things to do is consider who else might lend you the money first. Be it friend or family. This will be far more flexible and the interest cost is certain to be far less stressful. Alternatively, if you don’t want your family to know about your current financial situation then other sensible options include selling unwanted possessions and asking for extra shifts at work.

If those options don’t work how about taking a look at credit unions. You can start your search for a credit union here: https://www.findyourcreditunion.co.uk/.

In some situations the government may be able to help with a loan. There is an initiative known as a budgeting loan. You can look at a getting one of these from the government website. Whatever your situation, it’s always worth know that help is available.

A look at payday loan direct lenders

There are many payday loan direct lenders that you can try. Just in the same way as there are many brokers that can connect you to a panel of lenders too. Ultimately the lender you use should be offering you the best terms that assist your personal financial situation. One of the most important things to remember with all loans is to take your time. Don’t just go with your first offer, make sure you carefully read the terms of your agreement and that you’re completely satisfied with the deal. There are plenty of payday loan direct lenders so don’t sell yourself short. It’s also useful to gauge the your current financial situation.

Can I get instant or guaranteed payday loans?

It’s possible to get an instant payday loan once terms are agreed but they are never guaranteed. The normal process to receive a payday loan is the application is made, you then receive offers if there are any, and then you can accept the offer. From here, once you have signed for the deal, it becomes an instant payday loan in the sense that money is released instantly from this point. You can find out more about instant payday loans at the link provided. Regarding the guarantees, the truth is now one can give you guaranteed payday loans.

You need a credit check in order to receive finance in the UK so no one can guaranty finance in any way, shape or form. If you think you’ve seen advertising of this nature, chances are it was a clever marketing ploy or the website was not authorised and regulated by the FCA but the good news is these loans have high approval rates

Are payday loans high acceptance?

Generally speaking, if you look at other websites you’ll see that most suggest ‘high acceptance” or some write in the 90% and above region. If that is the case then these are certainly high acceptance payday loans. If you follow the link provided there is certainly far more information regarding this type of loan and certainly worth a read but to briefly summarise, be careful of the interest rate on a high acceptance loans, they can be as much as 24% on a 30 day month. This can add up considerably so I recommend paying this type of loan off as quickly as possible to improve your overall financial situation. Make sure that all important bills like mortgages are covered first though and never take a loan in the situation whereby you cannot cover these.

I’m looking for the best and cheapest payday loan?

There’s only one way to get yourself the best payday loan, and that is to try! You’ll need to apply with lenders and brokers alike to see who offers cheap payday loans. Given all lenders individually assess your financial situation individually and on a careful basis, it means some lenders may offer you a better rate and terms. So what makes the best payday loans? You can learn more about the main criteria that makes a good loan at the link provided but to summarise:

  • A good interest rate.
  • Flexible repayment terms.
  • Low fees in the event of late repayment.
  • A lender that will listen.
  • Quick payouts when you need them most.

Given all these factors it’s important to carefully review the best payday loan offers you receive.

What can I do if I start to struggle with payday loan debt?

The first and best piece of advice is to ensure that you get help quickly. Do not let the problem get worse. Contact the lender straight away and let them know what’s going on. Stepchange.org is a charity setup to help those in this situation. It would be highly advisable to visit their page about struggling with payday loan debt: https://www.stepchange.org/debt-info/types-of-debt/payday-loan-debt.aspx. This is a good place to start understanding your rights and responsibilities. Weigh up your options carefully and always remember, payday loans are a last resort and should online be used if absolutely necessary.

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