Representative Example: If you borrow £2,600.00 over 36 months at a Representative rate of 49.7% APR (variable) and an annual interest rate of 41.00% (variable), you would pay 36 monthly instalments of £126.61. The total charge for credit will be £1,957.89 and the total amount payable will be £4,557.89.
If an emergency expense that you weren't expecting has popped up or you have had a change in circumstances and find yourself in need of cash fast, a payday loan could help.
Because loan interest costs vary so widely, it's important to compare lenders to make sure that you're getting the right loan for you at a reasonable interest rate.
What is a payday loan?
Payday loans are small short term loans from around £100 to £1,000 usually borrowed over 3 months or more.
It used to be that you could borrow and repay a payday loan in as little as 30 days, but, since the FCA introduced a new cap in 2014, most payday lenders re-structured their repayments to a mini-mum of 3 months.
After claim-backs due to miss-selling, several direct payday loan lenders in the UK filed for bank-ruptcy in 2019 including Wonga and Quick Quid.
This trend has continued with Sunny and Peachy filing for administration in 2020, partly due to the coronavirus outbreak.
These developments have led to some positive changes for consumers, though, with some lenders reducing interest rates and engaging in better marketing practices.
How much can I borrow with a payday loan?
The amount you can borrow using a payday loan varies from lender to lender; typically this amount will be £100 to £2,000 over a minimum of 3 months.
We have lenders on our loan-matching panel offering loans from £100 up to £25,000. Ultimately the amount you can borrow from any lenders depends on factors such as:
- Credit history
- Employment status
- Residential status
- Income & outgoings
How long will it take to get the cash?
The time it takes to receive the funds in your bank account is also somthing which varies from lender to lender.
Some of the lenders on our panel approve loans automatically and pay-out in as little as 10 minutes. There's no guarantee that this will be the case for your application, though.
When do I have to pay it back?
Most of the lenders on our panel offer either weekly or monthly repayment schedules. The length of time you'll have to pay back the loan will depend on the lender but for a payday loan of up to £300, for example, you'd commonly pay this back over 3 to 6 months.
How do I know if I'll be approved?
There are dozens of payday lenders out there all with different lending models and acceptance crite-ria.
When applying to payday loan direct lenders, there's a chance you won't meet their borrowing crite-ria and could be rejected. An application rejection can affect your credit score and lead to further rejections.
Our loan matching system allows you to fill in your details once and retrieve offers from lenders who want to lend to you based on your personal information and circumstances.
Using the UP Money loan matching system, you can find the cheapest lenders from a panel of sev-eral lenders who want to give you the loan, without affecting your credit score.
How do I find the best payday loan for me?
Each direct payday loan lender has specific criteria that must be met by the borrower, such as their affordability and credit history.
With our step by step loan-matching application form, we've made the process of finding the best loan simple and straightforward.
Will you perform a credit check?
We don't perform a hard credit check when matching you with the right lender. We can show you lenders who'll be most likely to accept you, and from there, if you choose to go ahead with a formal application, the lender will likely perform a credit check.
What if I have a bad credit history?
Our loan matching service can be handy to those with a poor credit history. You're much more likely to find a lender that'll accept your with us compared to going to a direct lender.
We have several lenders on our panel who offer bad credit loans and bad credit payday loans.
Could getting a payday loan affect my credit score?
Taking any form of credit will have some effect on your credit score. it's unlikely that your credit score will suffer by taking a payday loan so long as you pay back the loan as required by your agreement.
Make sure you're able to afford your loan repayments comfortably before formally applying.
Are there alternatives to payday loans?
Yes. Technically, most of the lenders on our panel aren't payday loan lenders since they don't offer loans with repayment required on your next payday.
Lenders on our panel offer loans from as little as 3.9% up to 1314%.
In general, the better your credit history and your ability to repay a loan will mean you'll be offered a loan at a lower effective Annual percentage rating.