Even if you’ve spent hours carefully budgeting, it’s not always possible to predict what costs are hiding around the corner. Whether your MOT has revealed an unexpected problem with your car or your oven has packed up, “Payday” or short term loans are one way to cover the unexpected, temporary shortfall in cash. However, “high-cost short-term credit” is an expensive method of borrowing. Before you take a “payday” loan out, make sure you’ve considered alternative options such as those listed at moneyadviceservice.org.uk
Because this type of loan is not designed as a long term solution, smaller credit amounts and shorter repayment periods (than traditional bank loans) are the norm. They also feature much higher rates of interest. However if your application is accepted it is possible to have your loan transferred to you within a day.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Payday/short term loans are fast and expensive. They’re designed to cover unexpected, essential costs – perhaps repairing a broken laptop or calling out a plumber.
If you do decide to take out a short term/payday loan you must ensure that you can meet the repayment terms, and you should look to pay off your loan as soon as you can afford to. Missing repayments will not only result in fees but will damage your credit rating.
CPA differs from direct debit because they give the company being paid the ability to withdraw money from your account whenever they wish, and to take payments of different amounts without consulting you. Most payday loan companies will use CPA to collect your repayments, however you can cancel this at any point by either consulting with your provider or your bank.
To be illegible for a short term loan you’ll normally need to meet the following criteria:
Meeting these requirements does not guarantee you will be able to take out a £300 loan – only that your application will be considered.
Payday/short term loans are an expensive method of borrowing and should only be considered as a last resort. They may not solve your money problems, and aren’t a good idea for borrowing over longer periods.
Before you apply for a payday or short term loan, make sure you’ve considered other options. Is the expenditure that you’re planning absolutely essential? If you can defer a purchase then you could save yourself money in the long run. If you’re struggling to pay a bill, then why not talk to your electricity, gas, phone or water provider to see if you can work out a payment plan?
Read more about alternatives to payday loans at moneyadviceservice.org.uk.
Browse our collection of payday loan guides, designed to answer all of your short term loan questions and help you find the right payday loan.
If you need to cash a cheque, it may take up to 3 days to clear it with a bank. Cheque cashing services give you immediate access to your money.
QuidMarket offers an instant decision on loans of up to (or for returning customers) and once approved, you can expect the money in your account on the same day. QuidMarket will consider you for a loan even if you have a bad credit history. Find out how other lenders compare.
If you need to borrow cash quickly and tend to use a prepaid card for regular spending, you may be looking to get a payday loan transferred to your prepaid card.
The Money Platform is a peer-to-peer (P2P) lending platform that matches investors with borrowers and provides loans of up to . But at it’s core, is it just another short term lender?
Anico Finance is an online lender providing personalised, transparent, short-term loans of – to help cover and spread the cost of an unexpected financial shortfall. Read the full review and compare its rates and eligibility criteria with a range of lenders.
Wageme is an online platform providing flexible and transparent short term loans of to for unforeseen financial shortfalls.
Sunny is an online platform providing clear and transparent short term loans of between – for when unforeseen circumstances pop up. Find out how their lending options compare.
A 1 week payday loan can give you the cash you need until your next paycheck. Learn how it works, what to watch out for, and compare lenders.
A payday loan gives you the money you need quickly, even if you have bad credit or low income. But which one is best for your situation?