Many people search for payday loans if they are running short of cash to see them through to their next pay date. As a broker we can help you find a competitive loan from our panel of flexible lenders. We understand the importance of being able to access loans quickly and easily, so if you are searching for a payday loan, here at CashFlex we may be able to offer you a flexible alternative. This useful guide will explain payday loans in detail, so you can find the ideal form of lending.

What is a payday loan?

A payday loan is a short-term form of borrowing which is repaid in full on the day of the borrowers next pay date. These payday loans tend to be for smaller amounts and are designed to lend just enough to see the borrower through to their next payday.

How to get a payday loan?

There are many people searching for payday loans, as many potential borrowers need small cash amounts for a short period of time. However, if you are looking to borrow a small amount, such as £100 or £150, there are alternative loans available. Instead of borrowing from a payday lender and repaying on your next payday, our panel of lenders can lend anything from £100 to £5,000, across repayment periods to suit you. 

The repayment terms are designed to be flexible, for example, if you borrow £500, the repayments can be split across 3, 6 or 12 monthly instalments. However, before you complete the application form you should ensure that you are able to repay the amounts required each month without causing financial hardship.

How do you get approved for a payday loan?

The best way to check whether you are eligible for a loan is to use our innovative QuickCheck tool. In just 60 seconds you will know whether you are likely to be approved by one of our lenders. If the QuickCheck tool indicates that you are likely to be accepted for a loan, the first step is to complete our simple loan application form.

The application form is designed to quickly assess your financial situation and your unique requirements. Once we have your details our system will pass your information to our panel of 40 lenders, who will complete a soft search of your credit file. This does not leave a footprint on your file and as soon as a lender indicates a strong chance of approval, you will be redirected to their website.

At all stages of the application your data will be kept safe with our 256 Bit security. In general, you will be considered for a loan if you are aged over 18, a UK resident and in receipt of a regular salary which is paid into your UK bank account. 

How does it work?

Once you complete the application form on our website you will be directed to the website of the lender most likely to approve your application. As we are a fully regulated and authorised credit broker and not a direct lender, you will need to complete a final application form on the lender’s website. During this stage of processing the lender will perform a hard check of your credit report, which will leave a footprint on your file. It is important to note that making too many loan applications in a short space of time can have a negative impact on your credit rating.

As a professional broker, we are committed to helping you find short-term loans from lenders which are authorised and regulated by The Financial Conduct Authority. Although our panel of lenders are legally required to complete a hard credit check, they are progressive and open-minded so you may still be able to access the loan you need.

You will be under no obligation to proceed, so you can change your mind at any time before the final application is processed.  However, at this stage there is a high chance of approval, as you will already be matched to a lender which is likely to approve your application. Although the lender will check your credit history, they will also consider factors such as your current ability to repay the loan.

In the same way as payday lenders, our panel of lenders know that you are looking for your cash quickly. So, if you are accepted, the funds can be transferred to your bank account in minutes*. Although, the banks processing times may impact the exact availability time of your cash.

The processing times for these loans is quick in comparison to many traditional loans, so it is important that you consider the impact it will have on your finances. If you are struggling financially there are a range of organisations which can offer free and impartial advice, such as Step Change and The Money Advice Service. 

Can you get a payday loan with very bad credit?

If you have a poor credit history, it is only natural to be worried about the chances of a loan application being approved. In the past traditional lenders would only consider lending to those with a good credit rating, however today there could be alternative options available.

Here at CashFlex we act as a loan broker and we specialise in helping borrowers with every credit rating and financial history. We have partnered with a wide range of lenders offering short-term loans, so that even those with a very poor credit could have access to the loan they need. Thanks to the demand for short-term loans there are many lenders available, so it is possible to find competitively priced loans with terms that suit your individual requirements. 

Are payday loans bad?

Just a few years ago payday loans were a common form of lending for those who found themselves struggling financially before payday. However, in some situations repaying these payday loans on the following payday could be difficult if other unexpected costs cropped up. The fixed repayment terms for these payday loans could cause difficulties with late payments and also repetitive borrowing, especially with APR’s which often exceeded 1000%. However, there is a demand in the market for quick, short-term forms of borrowing.

The industry has developed, so today there are a range of alternative loan options available. As an alternative option to payday loans there are a variety of lenders which specialise in short-term loans. These lenders can offer a more flexible form of borrowing than payday loans and in many cases higher loan amounts. 

Can you go to jail for not paying back a payday loan?

If you face unexpected financial difficulties, you may be worried about being able to pay bills and make debt repayments. If you have previously borrowed from a payday lender and are unable to repay the loan, there are options available to you. If you miss the repayment date most lenders will contact you and try to arrange settlement of the loan. 

Many lenders will charge additional fees for missed payments and interest charges will begin to accrue, so you should speak with them to arrange a repayment plan as soon as possible. The charges will vary between lenders although the FCA states that interest must be capped at 0.8% per day. 

If you have an outstanding payday loan which has been passed to a debt collection agency, you may be worried about the implications. Here in the UK, failure to repay consumer debts will not result in a jail term.

As with defaults on other forms of credit, defaulting on a loan will impact your credit score as the payday lender will report to credit reference agencies. If you are concerned about your ability to keep up with loan repayments, there are a variety of impartial organisations which can help, including The Money Advice Service, Step Change, PayPlan, National Debtline, the Debt Advice Foundation and Citizens Advice.

You are age 18 and a UK resident

You have a regular income

You have a valid UK bank account with an active debt card

Try our FastCheck tool with no impact to your credit score

Our new tool allows you to calculate your chance of being accepted for a loan.

Check out what our trusted customers had to say.

See more feefo reviews »

Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative.

We’re a fully regulated and authorised credit broker and not a lender.