If you’re trying to beat a financial emergency in the month with a depleted purse, taking a payday loan can become the next logical step. While this can be a fast alternative to missing your utility bill payment or walking to work for the rest of the month, it is an expensive option. You should ensure that you’ve exhausted every other option available before taking a short term payday loan.

Payday loans require you to repay the amount you’ve borrowed, plus the interest, on the next payday. Sometimes, this can be financially stressful, leading you into a recurrent tide of debt. Many lenders recognize the effect that payday loans can have on your finances, therefore a lot of those who offer these loans extend the repayment period. Payday loans with extended repayment terms are called short term loans.

Payday (or short term) loan lenders often offer quick loans online which you can repay within 3 months and 1 year. These loans can be repaid weekly, fortnightly, or monthly, depending on the agreement you have with your lender. You may have to repay the interest first before you pay back the initial sum borrowed or you pay back interest and a part of the capital with every installment you make. It depends on your lender and its lending policy.

It’s easier to get a payday loan with bad credit than it is to get a personal loan. The amount you can apply for is also smaller (usually a limit of £1,000) and lenders want to know if you can repay, based on your current financial history, rather than the score on your report. Daily interest rate cap of 0.8% daily means that you will be charged £4 per day for every £500 you owe. As such, knowing the total amount you have to pay back is more important than the loan advert interest rate. We have options for very bad credit payday loans on this website. You can borrow £100, £200 & £500 pounds and have the cash in your bank account today.

Top 5 UK Payday Loan Lenders

Lending Stream

Lending Stream gives you an instant decision when you fill and submit the form on their website so you’ll know whether you’re accepted or not. If you’re applying for the first time, you’ll get a funding limit of £800 while returning customers can apply for up to £1,500. Your financial condition and credit rating form the basis for deciding if you’re eligible for the loan you’re applying for.

You can decide to let this lender take your repayments directly from your account or you can manage them yourself through online payment on their website. Repayment terms can last as long as 6 months and bad credit will often not be a barrier. This is a payday short term loan that gives you ease to borrow and repay over time instead of in one lump.

QuidMarket

Get a fast decision instant loan from QuidMarket, even if you have bad credit, in the range of £300 and £1,500. You can pay back weekly or monthly, depending on what is more suitable for your financial condition. QuidMarket will run a check on your financial statement and credit report to decide if you can pay for the loan you’re applying for. This forms the basis for their decision.

Repayment terms can last up to 6 months with this lender. To be eligible, you must be more than 23 years, resident in the UK, and earn no less than £1,300 each month. Approved funds are usually transferred to your account within 2 hours; all application process are handled online.

Creditspring

If you’re looking to avert interest payment on the amount you borrow, Creditspring is your go-to option. This lender charges monthly fees in lieu of interest on loan amount and you can borrow twice in one year without paying any interest. You have access to pre-approved loans within the year as a member which saves you from instant decision borrowing.

First time Creditspring customers will have their loan application approved in 2 weeks. This kind of borrowing is suitable if you are willing to wait for a while to have your loan approved.However, this can be a great way to take short term loans while paying back a merger £8 monthly for membership.

CASH4UNOW

Cash4unow is available Monday to Friday and will fund your account on the same day through Faster Payments if your application is approved. Application is done online but you may receive a phone call to verify your employment and ability to afford the loan you’re applying for. You can borrow up to £1,000 and repay in 4 to 6 months.

If you apply within work hours, Cash4unow will give you a 15-minute response to your application. You’ll only pay interest for the number of days you borrowed and you’ll never pay back more than twice what you borrowed. Additionally, if you default on repayment, you won’t be charged more than £15 in total, but don’t default.

Mr Lender

Award winning Mr Lender offers £500 loan limit to first time customers and £1,000 limit to returning customers. Approved applications are funded in 60 minutes and this can be repaid in 6 months installment. Approvals are subject to your credit report and your ability to afford the loan you want.

UK residents who are 18 years and above can apply for this loan if they earn up to £600 monthly. Every process is conducted onlive; you’ll only need paperwork to support your application if the verification is stalled. Repayments are made through continuous payment authority (CPA) which permits the lender to automatically debit your account of the agreed amount.

Frequently Asked Questions

How much can I borrow?

How much you can borrow depends on your credit report and what you can afford by your financial condition. The amount is usually between £50 and £1,000. Most lenders will have a different limit for new and existing customers. Longer repayment terms will make your installments cheaper but the overall cost will be higher.

How will the lender deduct my repayments?

The lender will often deduct your repayments via direct debit or continuous payment authority (CPA). They’ll usually send you a notification before making the withdrawal. In some cases, the lender will let you decide to approve a direct debit or to manage the account yourself.

How long will it take for me to get the loan funds?

You’ll often get instant funding from lenders when your loan application is approved. This means funds can reach your account within 15 minutes and 1 hour. However, your bank may affect how fast this can happen.

Can I pay off my payday loan early?

You can pay off your payday loan early but the terms will depend on your lender. Some lenders will require you to pay the initial amount agreed by your contract while others will only calculate the interest on the number of days you borrowed. You can verify the lender’s repayment policy and charges before you accept the offer.

What is the information I need when applying for a payday loan?

Lenders will ask for full details including your address for the last 3 years, your employment history, and financial statement. This will enable them to run a credit check on your ability to repay the loan.

Additionally, you may need to provide your bank online login details to enable the lender to set up automated debits for repayments. You can opt to authorize them yourself in order to protect your account.