With the cost of living rising constantly, it doesn’t take much to derail even the most meticulously calculated budget. Whether it’s an unexpected bill or a household emergency, people from all walks of life will struggle with a cash flow crisis at some point.
Payday loans are designed to help. The best lenders offer a simple application process, fast approval, and speedy payments. They eliminate the need to exchange forms and wait for a decision for weeks on end.
Not everybody has a squeaky-clean credit record. As a result, many people are excluded from applying for loans from more traditional lenders, like banks. Payday loan companies are happy to give you a short-term loan, even if you have a bad credit rating.
Below, we’ll review some of the most popular payday loan lenders in the UK to help you make the most informed decision.
Do you need a clean and straightforward, one-off cash loan? Or would a line of credit be better for your needs? Do you need fast cash to cover an emergency, or is there a long-term expense you need help with? Below, we’ll explain the different types of online payday loans and who can apply for them.
Payday UK gives payday loans ranging from £50 to £5,000. Whether you only need a hand to get you to the end of the month or you have a more serious expense looming, they will have the solution for you. The website is clean and simple to use, and the application process only takes a few minutes. To check if you would be approved, you can use the simple loan eligibility calculator without filling in all your details. You can find out if you’ll be approved within 60 seconds, without leaving a credit footprint.
Payday UK is one of the most convenient payday loan lenders because they give you an instant quote and don’t charge extra fees. Depending on the size of the loan, you could receive your funds on the same day you applied. The lender has high approval rates, and you can complete your entire application on your phone.
Payday UK’s lenders conduct ‘light’ checks. You won’t need to send away your passport or bank statements. The application process is simple and secure, and you’re not obliged to accept the offer they quote you. This means you can shop around to find a better deal. However, keep in mind that applying to multiple lenders will affect your eligibility for a fast loan. Unfortunately, this lender may ask for a guarantor on occasion.
Payday UK has flexible repayment terms, with repayment plans ranging from three months to thirty-six months. If you run into an issue, they have an efficient customer service team that’s ready to answer your questions via email.
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If you have a poor credit history, there’s no need to worry with Pounds to Pocket. All they require to approve your loan is that you have a regular source of income, be that from employment or benefits. Unfortunately, some forms of benefit, like Housing Benefits or Job Seekers Allowance, aren’t technically classed as ‘income’, and won’t qualify you for a loan.
Pounds to Pocket has 24/7 service, meaning you can apply for payday loans at any time or day. The application process only takes five minutes. There’s no need to wait for traditional business hours – get approved instantly and receive your funds on the same day.
This lender gives payday loans ranging from £100 to £5,000 with a representative APR of 79.5%. Pounds to Pocket only partners with responsible lenders, offering 6-month loans, emergency loans, cash loans, no guarantor loans and more.
Don’t worry if you have a poor credit rating. With a 98% approval rate, Pounds to Pocket is dedicated to tailoring finance solutions for all kinds of customers. Best of all, they don’t ask for a guarantor, making the process hassle-free. You won’t have to worry about completing paperwork or paying extra fees.
Pounds to Pocket offers flexible repayments, with plans ranging from one month to thirty-six months. If you’re having trouble keeping on top of your finances, they also have a great resources section. The website can direct you towards free debt management services.
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Cashfloat is a payday lender that guarantees same-day funding on all approved loans. The APR varies between 295.58% and a maximum APR of 1294%. This lender is ideal for smaller transactions, with loans between £250 and £1,500 available. The process is quick and easy, and you can repay your loan in one payment or over nine monthly instalments.
Not only that, but Cashfloat is a direct lender, meaning you don’t have to go through endless middlemen or worry about getting involved with unscrupulous lenders. Cashfloat’s commitment to responsible lending is expressed prominently on the website.
Don’t worry if you have a bad credit history, because Cashfloat accepts all credit scores. The only caveat is that you’re much more likely to be approved for a loan if you’re in full-time employment. Part-time workers and those on benefits will have a trickier time. If you’re approved for a loan, you won’t have to provide details for a guarantor. In addition, there’s no penalty for early repayment, so you can save on interest if you’re in a position to pay the loan back early.
At the end of your repayment plan, there’s a nice little incentive in the form of a 5% cashback offer. If you made all your payments on time and complete a survey, the payday lender will return a percentage of your accumulated interest to you.
Customer support is available 24/7, and all the customer service agents are UK-based.
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If you need cash in your bank account soon, then consider a loan from Lolly. The lender promises payouts in as little as an hour, provided your bank accepts fast transfers. Decisions are made instantly online; you can borrow any amount from £100 to £5,000.
Lolly has been lending money since 2005, so they have a track record you can trust. The lender won’t charge you any hidden fees for making an application, and the process takes a matter of minutes. The repayment terms are flexible; you can pay them back over 3 to 24 months. Loans from Lolly have a representative APR of 79.5%.
The lenders Lolly works with approve payday loans at a rate of 98%, so don’t worry about your credit score. Lolly specialises in getting your enquiry approved, often on the first try, no matter whether you have good credit or not. If they can’t get an offer for the loan you requested, they may show you an offer with an alternative amount or different terms. This way, they might be able to help you with your financial problem, at least partially.
You won’t have to complete any paperwork, and you’re under no obligation to accept the loan offer you receive. Lolly prides itself on providing clear and transparent information to borrowers so they can make the most informed decision when signing their lending contract.
You can apply for payday loans at any time, as the website support team is available 24/7, including on bank holidays. You can also contact Lolly by phone, but the lines are only open during office hours.
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If you’re looking for the best payday loans UK, then Drafty is definitely worth your attention. Drafty will lend you any amount between £50 and £3,000 without requiring a guarantor or paperwork. The lender is rated as ‘excellent’ on Trustpilot and can provide instant transactions on approved loans to specific bank accounts.
You don’t have to worry about who you’re dealing with because Drafty is a direct lender. The instant decision, approval and repayment plan comes directly from them. You can apply for a secure, fast application any time of day, any day of the week.
Drafty takes a flexible approach to payday loans by offering two distinct types of loans. The first is a standard loan that can be repaid over 12,18, or 24 months. The second is ‘Drafty Flex’, which is a line of credit rather than a loan.
When you take out a line of credit from Drafty, you only pay interest on what you use. They won’t charge you a fee for repaying the loan early, and as long as you pay the monthly bill on time, you can borrow again up to your agreed limit. This is more like getting an overdraft for your bank account than going through a lender.
This way, you don’t have to apply over and over again to get more credit. We recommend doing everything through the website, though, because you’ll be charged for phoning them. Unfortunately, only those in full or part-time employment will be approved, and a minimum income of £1,250 per month is required.
Customer support is available via live chat, email or phone, and you can contact Drafty any time.
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If you’re a student or a shift worker looking for payday loan lenders, then SteadyPay could be for you. Their modern and flexible approach to payday loans makes them stand out from the rest. You’ll apply for, accept and manage your loan via the mobile app. While this is doubtless preferable for the younger demographic, older people might be put off by being unable to do anything on the website.
SteadyPay differs from other payday loan lenders because it’s a subscription service rather than a pure lender. This way, you won’t be charged interest or additional fees for your credit. The only charges you need to worry about are the APR (representative 91.25%) and the monthly subscription charge of £30. However, you must be employed full-time to apply for a loan.
SteadyPay accepts applicants with bad credit; there are two types of loans they can get. The first is a straight loan of up to £300 with a three-month repayment plan. This is perfect if you just need a helping hand now, but don’t see yourself needing to borrow again in the future.
For people with unreliable incomes, we highly recommend the income top-up feature. If, perhaps, you’ve worked fewer hours than expected this month, SteadyPay will advance you the difference, keeping your budget on track. You can borrow up to £1,000 via Top Up. However, you need to be a subscriber for two months to unlock this feature.
Your data is handled securely, and SteadyPay never logs your bank details to process payday loans.
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Moneyline offers small payday loans to people who receive benefits and those with poor credit scores. You can borrow anything from £200 to £1,000; they will decide in two working days. Once you’ve been approved, you’ll see the money hit your bank account on the next working day.
Moneyline is a direct lender, meaning you’ll only deal with them throughout the process. The application form only takes ten minutes to complete, and afterwards, you’ll be able to check your balance and make repayments using the handy mobile app.
These online payday loans have a fixed weekly repayment plan. You can borrow over 14-32 weeks, so choose the plan that works for you. Moneyline assesses your income by accessing your bank statements from the last three months. Unfortunately, they have some strict rules. Certain people may not be approved. If your bank statement shows no income, or you have a history of not paying back loans, or 10% of your expenditure goes towards gambling, you might not be approved.
Moneyline is, however, happy to give people a loan if they’re on benefits. Whether you’re in receipt of the Disability Allowance or the Universal Credit, this payday lender will find the solution for you. They also have a handy benefits checker, and can check if you’re entitled to any additional benefits if you provide some details. Support is available via live chat, email and phone.
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Online payday loans are a simple solution to short-term cash flow problems for those who may not be approved or want to wait for a loan from a bank. They have always been contentious, and with the proliferation of instant money transfers, they are likely to remain so. Some people swear by them, others warn against them. Neither perspective is inherently wrong. Whether a payday loan is right for you depends on the details. Below, we’ll explain in more detail.
Applying for payday loans online is much faster than going through a traditional institution. With a bank, you must send forms back and forth and wait weeks for a decision. A payday loan only takes minutes to apply for and can be approved instantly. Some lenders even transfer the loan to you on the same day it was approved.
Payday lenders tend to carry out ‘light’ credit checks, which only take into account basic personal and income information. These enquiries won’t affect your credit score, so you’ll be able to apply for more loans in the future. Many lenders are perfectly happy to approve finance for people with a poor credit score.
You can apply for payday loans online from your phone or your laptop; all you need is a few basic pieces of information. It’s nothing like attending several in-person meetings with a loan manager. Your information is handled securely, and you won’t experience the embarrassment of an in-person rejection if your enquiry isn’t approved.
You’re not at the mercy of one bank’s decision about your finances because there’s typically no obligation to accept the loan offer. This means you can shop around for multiple loans and pick the one with the most advantageous terms for you.
There’s no such thing as a free lunch, as they say. Payday loans are no different. Their accessibility comes at the cost of high interest rates. Often, people end up paying back nearly twice the amount they borrowed. It’s easy to be tempted by quick cash if your income is low, but make sure you can afford the repayments.
It’s common for people to get stuck in a loop of borrowing – taking out one loan to repay another, and so on. Payday loans are not a long-term solution, and even the most well-meaning people can fall into a trap and end up in debt.
Payday loan companies offer loans to individuals with poor credit histories, but these loans can still have negative consequences. If you’re ever applying for a car loan or a mortgage in the future, the fact that you’ve had a payday loan may count against you.
If you make a late repayment, the lender can impose severe penalties on your loan, including extra charges. Eventually, these mount up until you can’t repay the loan, and you’ve got a collection agency knocking on your door. Always contact the lender if you’re in danger of missing a repayment, and seek out a free debt advice service if you need help.
Annual Percentage Rate, or APR, is the total cost of borrowing money on a yearly basis. Payday loans, by their nature, have notoriously high APRs. Make sure you know what the APR is, and if your loan will cost you any extra fees, before accepting.
As you can imagine, there are a number of unscrupulous operators in the payday loans game. Luckily, regulatory bodies like the Financial Conduct Authority exist to help consumers. Check to see if your provider is properly licensed; if not, walk away.
Payday loans tend to have similar terms, so it’s worth digging into the fine print before you sign anything. Ideally, you want a loan that has comparatively low interest rates and is flexible in terms of repayment.
You can be hit with extra charges by payday loans if you’re not careful. You can be charged extra every time you default on a payment, for repaying early, or for contacting the company by phone.
Payday loans don’t demand full repayment on your next payday anymore. Many lenders are happy to set up a date that works better for you, or to stretch the repayment plan to afford you more time.
It can be hard to keep track of payday loans after a few weeks or months have passed. Some lenders provide a simple online portal where you can check the status of your loan and make payments. Others provide an app that does the same thing. Make sure you’ll be able to manage your loan in a way you’re familiar with.
Payday loans can be a convenient solution to a financial emergency. With same-day funding available, often without credit checks, they provide access to cash when time is of the essence. It’s still important to be sensible, though – don’t just sign up for the first offer you see.
Make sure you choose a reputable provider of payday loans, and that you understand the terms and conditions. Look out for hidden fees and charges for late or early repayments.
Finally, make sure you’re in a position to repay the loan in the future. Payday loans are expensive, and you don’t want to get into debt.