Payday Loan Companies

With paydays often weeks apart, there are many times when our bank balance is too low to cover unexpected costs. However, payday loan companies may be able to assist with your short-term cashflow issues. These quick loans aim to offer small, flexible amounts to cover emergency expenses until your next payday.

Payday loan companies often provide a fast service, with online applications and same-day processing. If you have been caught out by a financial emergency, there are a variety of payday loan companies which may consider your application.

What makes payday loan companies different from traditional lenders?

There are various traditional lending forms, such as bank loans, overdrafts and credit cards, where repayment is spread over a number of months of years. In contrast, payday loan companies focus on short-term finance requirements, with repayment required in full often within 2-3 weeks.

The eligibility requirements between banks, building societies, alternative lenders and payday loan companies vary, with each lender setting specific lending requirements. The ideal loan for you will depend on your exact situation, with payday loan companies often popular with borrowers needing small, quick loans.

Is a payday loan the right option for me? 

Payday loan companies tend to offer relatively small loans compared to banks and building societies, as they are designed to provide support between paydays. If you have been caught out by an unexpected expense such as a car repair or a broken boiler, a payday loan may be a suitable option. Although payday loan companies do not stipulate exactly what your loan can be used for, it is advisable to only borrow them when you are faced with a short-term cash flow problem.

If you are looking to borrow a larger amount an instalment loan with smaller monthly repayments may be more suitable. Although, it is worth noting that decreasing loan repayments by opting for a longer repayment period could result in more interest being repaid over the length of the loan term. It is important that a payday loan is repaid on time on your next payday, as the payday loan company may charge late payment fees and daily interest on the outstanding balance, which will increase the cost of borrowing. If repaying the loan in full on your next payday may lead to financial difficulties the following month, a payday loan may not be the right option for you.

The lowest interest rates tend to be offered by traditional lenders, which are offering low-risk loans to those with excellent credit histories. A higher interest rate is charged by payday loan companies to reflect the higher lending risk and the shorter loan term. The interest rate of payday loans tends to be expressed as an annual percentage rate (APR), with payday loan companies often quoting a higher APR than traditional lenders. However, the APR figure is calculated based on the cost of repaying a loan annually, so the figure quoted by payday loan companies may appear high compared to longer loan terms.

Am I eligible for a loan from a payday loan company? 

Many traditional loans require visits to banks or for paperwork to be completed via the post, however payday loan companies specialise in offering a fast online service. This means borrowers can usually apply for loans quickly online, with the whole process including signing the loan agreement completed online.

To be considered for a loan from a payday loan company, you will need to meet the lenders basic eligibility criteria. This can vary between lenders, although in general, you will need to be at least 18 years old, residing in the UK and in receipt of a regular income, which is paid into your UK bank account. Before making an application, you should ensure that you satisfy the lender's specific eligibility criteria, which lenders will display clearly on their websites.

It is important that you only borrow an amount which you will be able to repay, without causing financial difficulties in the future. If you decide to apply for a payday loan, you should be sure that your budget the following month allows for the loan to be repaid without causing issues. If your finances next month will be overstretched and another emergency crops up, you may be forced to consider borrowing another loan for a larger amount. If you are not 100% sure that you will be able to repay the loan, you should not apply.

Most payday loan companies will match your repayment date with the date you receive your pay so that the full loan payment is available on the repayment date. If the funds are not available, you could be charged a late payment fee and daily interest will begin to accrue on the outstanding balance. Late payments could also damage your credit score, which may make it difficult to obtain further credit in the future.

Are there any payday loan companies with no credit check? 

All payday loan companies which are authorised and regulated by the Financial Conduct Authority are required to complete a hard credit check on potential borrowers. If a payday loan company claims to offer loans without a credit check, they are either advertising misleading loans or operating irresponsibly. All responsible lenders are required to carry out credit checks as part of thorough affordability checks, to ensure prospective borrowers are able to repay their loan.

Payday loan companies may be willing to consider your application even if you have a poor credit rating. However, you must be able to demonstrate that you have a sufficient income to be able to repay the loan. The lender will consider your recent financial management, so being able to make payments on time and managing your budget well each month will improve the likelihood of being considered for a loan.

Is CashFlex a payday loan company?

No, CashFlex we are not a payday loan company and it is not possible to apply for payday loans through our website. Instead, we act as a broker with the aim of helping borrowers find the ideal loan for their requirements, with repayment periods starting at 3 months. 

Our panel of lenders includes both traditional and alternative lenders, which may consider applications from those with poor credit histories if the loan repayments are affordable. It is possible to borrow between £100 and £5,000, with repayment lengths of between 3 and 36 months, depending on the amount borrowed. For example, for loans of relatively small amounts of less than £1,000, our lenders offer repayment periods of 3, 6 or 12 months. 

The application process is designed to be as quick and simple as possible, so you will be able to complete your entire application online. If you are unsure whether you are likely to be approved, our FastCheck tool can help. The tool is designed to instantly calculate your eligibility for a loan based on a few key details, without performing a credit check.

If the FastCheck tool indicates that you may be considered, you can then decide whether you would like to complete our online application, although there is no-obligation. When you complete the form on our website, we will send your details across to the lenders which we think may consider your application. These lenders then assess your eligibility, the affordability of the loan and complete a soft search of your credit file. If a lender indicates that you may be considered for a loan, we will redirect you to their website.

Our panel of lenders includes a variety of loan companies which are willing to consider applications from those with a poor credit history if the loan repayments are affordable. To ensure the loan is processed responsibly and you will be able to comfortably repay the loan, our lenders will complete a hard credit check. This check is completed when you submit your final application with your selected lender, which means only a single hard credit search is reported on your credit file. This is a requirement of all lenders which are authorised and regulated by the Financial Conduct Authority.

The lender will process your application and if your loan is approved you will be able to sign the loan agreement online. Once received, the lender may release your funds in minutes*, although the availability of the cash will depend on your bank and its processing speeds.

Many of us are caught out by occasional cash flow issues, as our income and outgoings often fluctuate each month. However, if you are regularly finding it difficult to manage your budget it may be a sign of larger financial difficulties. A payday loan or instalment loan could make these financial difficulties worse, so borrowing may not be the best option available to you. There are a variety of organisations which can offer free and impartial advice to help you gain control of your finances and effectively manage your debt, including The Money Advice Service, Step Change, PayPlan, National Debtline, the Debt Advice Foundation and Citizens Advice.