Leading Lenders in UK for Payday Loans

Need some money to take care of yourself until the next payday? Payday loans are small amounts that you can borrow within the month to help you solve a problem before the next payday. The amount that you can borrow is usually between £100 and £1,000.

A payday loan is not the best option for solving a financial problem. Even leading lenders in the UK for payday loans charge high interests.

The amount that you can borrow is small compared to credit cards and other types of loan. But the high-interest rate on this small loan can get you into a deeper financial mess than you were before borrowing.

Usually, when you take a payday loan, you authorize your lender to take the money from your debit card once you get paid. The payment will include the amount you borrowed, interest, and other charges. This will eat deep into your pay. However, some lenders may allow you to repay over a period — say 6 months. The good news is that you can get PayDay loans if you have very bad credit.

Here’s the reason a payday loan may not be your best option:

What Payday Loans Cost

According to the Financial Conduct Authority (FCA), you can only pay £24 on every £100 you borrow. If you default with payment, you have to pay a fine of £15. This is higher than what you’ll typically pay in one year if you take a credit card with APR of 20%. In this case, with consistent payment and zero penalty charge, your interest will accrue to £20.

This is £4 lower than the payday loan charges. Remember, also, that you often have to pay back the loan within 30 days. If your lender extends the repayment period, you’ll need to pay extra charges and this will increase the impact on your finance. This can even draw you into recurring payment. You can get short term loans right now and if you need a quick loan we can help you with that too.

Apart from interest and charges, payday loans also impact your credit history. This can deter some lenders (like, a mortgagee) from giving you a loan. A payday loan often indicates that you have a problem with managing your finances. Early repayment will help, but the record is still an issue. And if you have to use it more than once, that’s a serious red flag.

Who Should You Take a Payday Loan From?

Granted, sometimes you can be so pressed, the only option you have is a payday loan. The least you can do at this time is to borrow from licensed lenders. In this way, if you have issues arising later, you can have options to fall back on. Totally avoid loan sharks because they can go to any lengths to recover their money if you default. You can get £100, £200 & £500 Pound PayDay Loan quickly on the same day as the application is made.

Here are some payday lenders to consider.

Cashasap.co.uk Loans

Cashasap.co.uk loans is a lender that specializes in giving payday and multi month loans. You can take a payday loan not exceeding £300 and not less than £100. The payment period spans between 1 day and 35 days; you can complete the transaction online. This lender does not take on bad credit, but is willing to review your credit history, if you think they need to.

To apply on their website, you’ll need to complete the application form. They will up this application with all the necessary checks, including information they collect from the credit reference agency. If your application is approved, they’ll credit your account in 24 hours. Cashapp.co.uk is registered with FCA as APFIN LTD.

Cashfloat UK

You can apply online to get your payloan day from Cashfloat.This lender offers short-term loans that range from £400 to £1,500. You can pay back within the period of 3 and 6 months. After you’ve submitted the application form, the lender reviews your credit history to affirm how to deal with your application.

Cashfloat can take on bad credit. But, if you have bad credit, check with them to know if they’re willing to take you on at a time. As long as you’re a UK resident, are more than 18 years old, and have your UK account, you can apply. Once your application is accepted, the lender will get back with an instant credit to your UK bank account. Cashfloat has an FCA license with the name Western Circle Ltd.

Buffa Loans

With Buffa loans, you can borrow up to £1,000 and repay within 6 months. This lender considers bad credit owners and will allow you to run a precheck to know if you’re eligible for a loan without impacting your credit history. If your application is approved, you will get credited the same day.

Buffa has the FCA license as Buffa Loans Ltd. This company offers short-term loans to people who need them. You can repay your loan early without an extra charge. Plus, you won’t be charged for late payment. All applications can be concluded on their website.

Lending Stream

Lending Stream offers their customers the opportunity to take a small short term loan and repay within 6 months, installmentally. You can borrow up to £1,500 on this platform, even with bad credit. This lender looks beyond your credit score; they consider your personal information. You have to meet their criteria before you are offered a loan.

Lending Stream is licensed by the FCA under the name Gain Credit LLC. If your application is approved, you’ll get the credit on the same day. You can repay early and get discounts on your interest rates, without any extra charges.

QuidMarket

QuidMarket is the trade name of Stagemount Ltd; they have a license from FCA. They offer payday and short term loans ranging from £300 and £1,500 that you can pay back between 3 months and 6 months. Before you are offered a loan, QuidMarket goes through your entire detail to ensure that you can handle it. It’s okay to apply with bad credit, they’ll consider you.

All applications are conducted online. If your application is approved, you’ll get the funds on the same day. All repayments begin on your next payday and are structured according to your circumstance. If you have to pay late, you won’t be charged any extra fees.

What You Should Know Before You Take a Payday Loan

There are a few cautionary measures that will help you to pull through a payday loan. You don’t want to be caught in the web as this can damage your credit history badly, making future borrowing difficult.

Be Sure That You Can Repay Promptly

Check your financial situation to ensure paying back your loan won’t affect your upkeep. If you see that repayment will make upkeep difficult, don’t take the loan. You’ll probably get into a spiral of surviving on these loans.

If a lender offers you a payday loan that is beyond your financial sustainability, you are being mis-sold. It means that your lender is not responsible and the effects of this loan can be far reaching. If you are desperate, look for other alternatives or talk to nonprofit debt advisers about your situation.

Avoid Borrowing for a Long Time

Lenders offer a loan period of 3 to 6 months to help you offset your bills without much pressure. But this can become a trap if you don’t have a plan to ensure that you sustain your repayment without defaulting. Repaying what you borrowed within the same month will help you manage the interest. This will also ensure your debt doesn’t rise to twice your borrowed amount.

Financial Conduct Authority’s regulations prevent a lender from charging you more than twice the amount you borrowed. But avoid getting to the point where you need regulatory interventions for your debt.

Stay Away From Repetitive Borrowing

If you pay your loans in time, your lender will make more offers with enticing discounts. Even with the discounts, you’ll still pay more for borrowing more. This is not good for you or your credit history. Once is enough!

Payday Loan Can Cost You a Mortgage

You don’t need to take a payday loan more than once to be denied a mortgage. On your credit file, payday loans take a different space. When underwriters check your report, they know how often you have to survive on this loan

For mortgagees, taking a payday loan means that you can’t manage your budget well. It also means that you won’t be able to keep up with repaying your loan. As a result, they’ll avoid taking you on.

If You’re Caught in the Web, Take an Alternative

It’s easy to get caught in the web with payday loans. What you borrow strips you of some money you need for upkeep after you’ve paid back. This will require you to borrow again so that you can stay afloat. Instead of staying on this loop, take an alternative way out.

Some of these alternative include:

  • Borrowing from your family or friends. They won’t charge you an interest, and you can pay back gradually. Be faithful, though.
  • Check with your credit union or Community Development Finance Institutions. They’re not the cheapest alternative, but they can help you out of the loop.
  • Get a 0% credit card. Even with a poor credit rating, you can get a 0% credit card to help you manage your debt. With the 0% period, you can pay back what you owe and be debt free.

Frequently Asked Questions

Are APRs Effective on Payday Loans?

APRs are not so effective on payday loans. If you decide to take the loan, your focus should be on the amount you have to pay, rather than APR. This is because APR represents the annual percentage rate. But, you’re taking a loan to repay in a few weeks (or months, if your lender lets you).

The reason lenders state their APR is because the regulation requires it. It states the amount you’ll have to pay if you were borrowing for a year. Therefore, if you don’t understand how it works, focus on the amount you have to repay. You need to know if it’s something that’s sustainable for you.

Can a Payday Loan Improve my Credit Rating?

If you repay your payday loan in time, you’ll get a positive rating for paying back early. Your lender might even make you higher offers. On the other hand, a late payment will leave a bad score on your credit report.

But a good rating from payday lenders does not necessarily improve your chances of getting a regular loan from other lenders. A better way to improve your credit rating is to take a credit card for bad credit. Even credit card lenders are pessimistic about lending to people who take payday loans.

Can I Cancel a Continuous Payment Authority?

You can cancel a Continuous Payment Authority (CPA). A CPA grants your lender the authority to take money from your account to repay the debt you owe. This can make you feel out of control each time you get a debit. Therefore, canceling can be a good option.

If you choose to cancel, make sure you have enough discipline to call up your lender and make the payment when it is due. This way, you can feel in control of the process. Besides, canceling ensures that the lender won’t have to make withdrawals without having your consent.

To cancel a CPA, speak to your bank or card provider. FCA regulations mandate them to cancel at your request. If any more debits are made after you’ve requested to cancel, the bank or card provider is obligated to refund you.

How Do I Know if My Lender is Legit?

You can check the FCA consumer credit register to know if your lender is licensed. This is important because loan sharks operate outside the regulations of the FCA and will make borrowing miserable for you. When you see an enticing advert, don’t just fall for the perks. Be sure that they are legal.

Loan sharks are dangerous. They can go to any length to recover their money from you and, since they are not regulated, you’ll have very little option. With legal lenders, you can fall back on regulators for protection, if you hit a hard time.