FAQ

Here are a few of the most common questions we have received over the years from our customers. We hope they help...

  1. What exactly is a payday loan?
  2. Who is paydayloan.co.uk?
  3. How much money can I borrow with a payday loan?
  4. What will I need to qualify for a UK payday loan
  5. When can I expect to receive my payday loan?
  6. Do I need to be employed to receive a payday loan?
  7. How do I know that my personal information is secure?
  8. When will I need to pay back my payday loan?
  9. What if I have bad credit? Will I still be able to take out a payday loan?
  10. Will you check my credit score before approval? Do you offer payday loans with no credit check?
  11. How long do I have to wait to take out another payday loan once I’ve paid back my prior one in full?
  12. Will I need a fax machine to complete the payday loan application process?
  13. Are there fees for your payday loan services? What kind of interest rate will I be responsible for?
  14. What exactly does APR mean or stand for?
  15. Can I take out more than one payday loan at a time?
  16. What if I cannot pay back my payday loan on the intended date?
  17. Is a payday loan right for me?
  18. What can I do if I have a problem with my payday lender?
  19. What if my FAQ isn’t here?

What exactly is a payday loan?

A payday loan is essentially a short-term loan that you pay back when you receive your next salary. Payday loans are also commonly referred to as personal loans, cash advances, fast cash loans and payday advances.

Technically, payday loans are known as ‘high cost, short term credit’ (HCSTC) in the industry and you may see this term in government discussions and other financial debates.

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Who is paydayloan.co.uk?

PaydayLoan.co.uk is an information resource site for the UK Payday loans sector. We are not a lender, but rather a one stop shop for all the information you could possibly want to find about payday loans. You can apply directly to lenders via our site. If you do this we will endeavour to give you as much information as we can on loans and lenders while at the same time remaining independent.

We do not direct you to any particular lender, although they might pay us a fee for introducing business to them, which helps us maintain this information website – and it doesn’t cost you more money to apply through us or go direct to the lender.

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How much money can I borrow with a payday loan?

We work with around 120 lenders of payday loans in the UK. Generally, lenders can offer you a loan of between £50 and £1,000 although for first time borrowers, the cash advance may be limited to £600 or so until you have proven that you are able to repay your payday loan.

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What will I need to qualify for a UK payday loan

The most important requirement for your instant payday loan is that you have a regular source of income that you receive every month to your bank account. As part of our commitment to responsible lending it it also very important to us that you have enough money leftover when you receive your next wage that you can cover payment of the loan amount and the fee. We also require that you be a valid UK resident. When you speak with our payday loan specialists, they will be able to explain all the terms and conditions and the loan amount that you qualify for based on your salary or regular income.

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When can I expect to receive my payday loan?

In most cases, the cash will be in your account and available for withdrawal within a few hours or even minutes after approval, generally. However, as we put you in touch with over 120 potential lenders, you will find that some will do things slightly differently from the others. While one might be able to transfer funds in a few minutes, another may take longer.

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Do I need to be employed to receive a payday loan?

Nearly all payday loans lenders will require that you have a regular source of income; either through employment, pension, armed forces, self-employment or otherwise. The most important thing is that you receive a stable monthly income. Your income will also determine the amount that your payday lender will be able to provide you with.

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How do I know that my personal information is secure?

When you go to our online payday loan application page, you will see a little lock symbol in the URL address bar letting you know that the link is secure along with any information that you submit.

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When will I need to pay back my payday loan?

Repaying a payday loan is a fairly simple concept – you pay your payday loan lender when you receive your next wage. If you don’t want to pay it all back that month, you do have the option to extend it for another 30 days (called a rollover) by just paying the interest on the loan again.

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What if I have bad credit? Will I still be able to take out a payday loan?

Yes! Paydayloan.co.uk's lending partners also offer payday loans for individuals with poor or bad credit, so not to worry. As a matching service of payday loans we can say, lenders are solely interested in your ability to pay back your loan on the intended date. If you have a regular and stable source of income, then there should be no reason why you should not be able to pay back your loan.

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Will you check my credit score before approval? Do you offer payday loans with no credit check?

Lenders are not (generally) concerned with your credit score or your credit history, but rather your current financial situation. Most offer payday loans with no credit check because they trust that you will pay back your loan on time and in full. Having assessed your income and outgoings (expenses) the lender will know whether you have sufficient funds to repay the debt on time.

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How long do I have to wait to take out another payday loan once I’ve paid back my prior one in full?

Usually, you will not be required to wait more than 2 days to take out a new online payday loan with the lending partners of Paydayloan.co.uk. Your payment method will most likely be the deciding factor in taking out a new payday loan – you may even be able to take out a new online payday loan after as little as 2 hours after the lender has received full payment.

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Will I need a fax machine to complete the payday loan application process?

Absolutely not! Paydayloan.co.uk offers you the comfort of instant payday loans all through your PC, tablet or smartphone. To apply for an instant payday loan, simply fill out our online payday loan application with your details and press send. We know if you're applying for a payday loan then time is most likely of the essence. So to save hours of time and lots of possible rejections by applying to one lender at a time we have decided to take the hard work out of it. With just one short safe application from PaydayLoan.co.uk we will apply to all the major lenders and then some!! All the lenders will look at your application and if they feel they can offer you a loan we will then pair you both up. This is the fastest and safest way to get approved for a short term loan. All your data is safe and nothing will be passed on to a third party lender unless you are preapproved by them and they make you a loan offer.

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Are there fees for payday loan services? What kind of interest rate will I be responsible for?

Yes, just like any other bank, you will be required to pay an interest rate on your payday loan of approximately 25% over a maximum period of 31 days. This means that the typical APR is 1734.1% - which is what it would be only if you rolled your payday loan over continually over the course of a year, but you’re not going to do that, are you?

Fees and costs
How APR's are worked out

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What exactly does APR mean or stand for?

That’s a great question that many people don’t ask because they think they should know the answer! APR simply means an ‘annualised percentage rate’ for a loan that you would borrow for a full year. Payday loans in the UK are usually borrowed over a period of 1 month (or less) so you won’t be charged for a full year. Lenders have fixed fees (which are mentioned in the previous question) of approximately 25% and there are no other extra charges or hidden fees from any of the UK payday loan lenders we direct you to. If you're still unsure, be sure to check out our super helpful What Is APR page!

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Can I take out more than one payday loan at a time?

Unfortunately, that’s not an option that we suggest. If you feel that you require more cash, then we suggest you perhaps look at a guarantor loan.

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What if I cannot pay back my payday loan on the intended date?

If you feel that will be unable to pay your payday loan back on the due date, then we highly recommend you contact your lender as soon as possible. Usually, most payday lenders will offer you the option of just paying back the processing fee or interest on your next payday and then the following payday you can pay back the full loan amount plus an additional payment of interest and fees. It’s best to speak with your payday loan lender and see what their exact terms and conditions are - or better yet, ask for this information before you take out your payday loan!

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Is a payday loan right for me?

Payday loans are a great service so long as they are used properly and not regularly taken advantage of. It is not a long term or permanent solution to a serious problem that you may be facing with debt. If you feel as though you may not be able to repay your loan by your next payday then we highly recommend that you visit one of the following websites; www.nationaldebtline.co.uk or www.citizensadvice.org.uk for debt advice. Those websites will be able to point you in the right direction and help get you started on your path to financial recovery.

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What can I do if I have a problem with my payday lender?

It is always best if you raise your issues with them first, but there are other organisations you can complain to, if you are not satisfied with the lender’s response to you.

Loan Issues

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What if my FAQ isn’t here?

I have more questions that aren’t answered here – how can I get more information? Please visit our Contact us page

The best thing you can do if you’re still on the fence about a payday loan is to fill in the application form and once you’re on the phone with your payday loan specialist, you will be able to ask any additional questions or concerns that you may have. Alternatively, you can always send us an e-mail through our Contact Us page and an agent will be in touch with you shortly.

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