Frequently Asked Questions
What is a payday loan?
Who is eligible for a payday loan?
How much can I borrow?
What are the interest rates?
How long can I borrow for?
What if I am unable to repay my loan?
What fees do you charge?
Why was I declined a loan?
What is the difference between a loan and a cash advance?
Do lenders run a credit check for a payday loan application?
What is a payday loan?
A payday loan is a short-term loan designed to help you out with unexpected emergencies, often with a duration of less than one month and to be paid back on your next pay date. Due to the high interest rates on these loans, they are not designed as a long-term financial solution but as a short-term fix to help cover unexpected costs.
Who is eligible for a payday loan?
Most payday companies will look at your financial circumstances and run a credit report before offering you a loan and as such, eligibility for a loan will vary from company to company. Most companies require you to be over the age of 18, have an income of some sort and live permanently at a UK address. Others may have further requirements such as applicants in full-time employment or earning over a certain amount per month.
How much can I borrow?
How much you can borrow, depends on the lender and your financial circumstances. You could borrow between £50 and £1,500 as a new customer, however this often depends on your income and outgoings. Please see our payday loans comparison table to find a lender suitable for you and your circumstances.
What are the interest rates?
The interest rates on short-term and payday loans vary from lender to lender and it is important to find a loan that is suitable for your circumstances. Interest rates can vary from 49.9% APR to 1,750% APR so please read all information from payday lenders carefully before taking out any loan.
How long can I borrow for?
Depending on the payday lender's terms and conditions, you are able to borrow for one day up to several months. The longer you take to repay, the more interest you will be charged and the more you will have to ultimately pay back to your creditor. Some payday lenders may allow you to roll over a full loan repayment to the next month, provided you are able to pay the interest for the current month.
What if I am unable to repay my loan?
If you are unable to repay a payday loan, contact your creditor. Do not take out any more payday loans, and do not borrow from one payday loan company to pay another. This is how many people's debts spiral out of control. For helpful advice on getting out of debt, please visit our financial difficulty page.
What fees do you charge?
We do not charge any fees or interest at all. None of the products we promote or write about are ours. Instead we provide free information about direct lenders and the services they provide, and not companies who will charge you to find a loan suitable for you. All the information available on our website is free.
Why was I declined a loan?
Companies have many reasons why they decline loans and they take many things into consideration when deciding when to loan money to customers. More often than not, it is because they don't not feel you are in a financial position to be able to pay back the loan. They will check credit reference agencies as part of your application process and it is often this that will determine if they feel you are eligible or not. You may contact the loan company directly regarding this, however, many will not give a specific reason as to why your application for a loan was declined.
What is the difference between a loan and a cash advance?
A loan and a cash advance are very similar, however, a cash advance tends to be from credit card companies, whereby you take out a lump some of cash from the machine, against the balance on your credit card. You may be charged a one off fee for doing this, plus a higher rate of interest on the money borrowed. You can find out more details about cash advances here.
Do lenders run a credit check for a payday loan application?
Responsible lenders will run credit checks during a loan application. This is to protect themselves from fraud and loss, and to protect customers who may not be in a financially stable position to have a payday loan. Find out more here.
Who is eligible for a payday loan?
How much can I borrow?
What are the interest rates?
How long can I borrow for?
What if I am unable to repay my loan?
What fees do you charge?
Why was I declined a loan?
What is the difference between a loan and a cash advance?
Do lenders run a credit check for a payday loan application?
What is a payday loan?
A payday loan is a short-term loan designed to help you out with unexpected emergencies, often with a duration of less than one month and to be paid back on your next pay date. Due to the high interest rates on these loans, they are not designed as a long-term financial solution but as a short-term fix to help cover unexpected costs.
Who is eligible for a payday loan?
Most payday companies will look at your financial circumstances and run a credit report before offering you a loan and as such, eligibility for a loan will vary from company to company. Most companies require you to be over the age of 18, have an income of some sort and live permanently at a UK address. Others may have further requirements such as applicants in full-time employment or earning over a certain amount per month.
How much can I borrow?
How much you can borrow, depends on the lender and your financial circumstances. You could borrow between £50 and £1,500 as a new customer, however this often depends on your income and outgoings. Please see our payday loans comparison table to find a lender suitable for you and your circumstances.
What are the interest rates?
The interest rates on short-term and payday loans vary from lender to lender and it is important to find a loan that is suitable for your circumstances. Interest rates can vary from 49.9% APR to 1,750% APR so please read all information from payday lenders carefully before taking out any loan.
How long can I borrow for?
Depending on the payday lender's terms and conditions, you are able to borrow for one day up to several months. The longer you take to repay, the more interest you will be charged and the more you will have to ultimately pay back to your creditor. Some payday lenders may allow you to roll over a full loan repayment to the next month, provided you are able to pay the interest for the current month.
What if I am unable to repay my loan?
If you are unable to repay a payday loan, contact your creditor. Do not take out any more payday loans, and do not borrow from one payday loan company to pay another. This is how many people's debts spiral out of control. For helpful advice on getting out of debt, please visit our financial difficulty page.
What fees do you charge?
We do not charge any fees or interest at all. None of the products we promote or write about are ours. Instead we provide free information about direct lenders and the services they provide, and not companies who will charge you to find a loan suitable for you. All the information available on our website is free.
Why was I declined a loan?
Companies have many reasons why they decline loans and they take many things into consideration when deciding when to loan money to customers. More often than not, it is because they don't not feel you are in a financial position to be able to pay back the loan. They will check credit reference agencies as part of your application process and it is often this that will determine if they feel you are eligible or not. You may contact the loan company directly regarding this, however, many will not give a specific reason as to why your application for a loan was declined.
What is the difference between a loan and a cash advance?
A loan and a cash advance are very similar, however, a cash advance tends to be from credit card companies, whereby you take out a lump some of cash from the machine, against the balance on your credit card. You may be charged a one off fee for doing this, plus a higher rate of interest on the money borrowed. You can find out more details about cash advances here.
Do lenders run a credit check for a payday loan application?
Responsible lenders will run credit checks during a loan application. This is to protect themselves from fraud and loss, and to protect customers who may not be in a financially stable position to have a payday loan. Find out more here.