Payday Loans UK

There are many expenses which can disrupt our carefully planned budgets, from household emergencies to car repairs. If cash flow is tight and you do not have savings to fall back on, there are a variety of options which may be available to you, including payday loans UK wide.

What are payday loans in the UK?

There are a variety of payday lenders across the UK, which specialise in providing alternative finance to help borrowers manage unexpected expenses between paydays. There are a range of potential credit options which people can turn to in emergency situations, from credit cards and overdrafts to traditional bank loans. 

If you have a poor credit history and are unable to access more traditional forms of borrowing, there are lenders across the UK which may be willing to consider your application. Payday loans are a popular option for many borrowers with a poor credit history, as lenders base their lending decision on several factors. If you need quick access to money and can demonstrate that you can comfortably repay the sum, a payday loan may provide quick access to the money you need.

The majority of payday lenders offer online applications, which means options are available UK wide. There is no need to visit your local bank branch or building society, instead you complete a quick online application form. Once your application is complete many lenders will make their lending decision quickly, with the whole process completed entirely online.

Who is eligible for payday loans in the UK?

Every direct lender in the UK will have its own basic eligibility criteria, which applicants must meet before they are considered. In general, you must be a UK resident, who is at least 18 years old with an active UK bank account and a regular source of income. When you submit your application the lender will ask for specific details, which will be used to assess your eligibility. This basic information includes your full name, address, monthly income, regular outgoings and employment details.

It is important that the information you provide on the application is honest, as you may be required to show bank statements or payslips as proof of your financial management. The lenders will also perform a credit check, which will be used to assess your current level of debt, payment history and the accuracy of the details you have provided.

Your credit report will show the lender a complete overview of your financial history, including your borrowing records and any outstanding debts. Every time you make a payment, take out credit or miss a payment this will be recorded on your credit report. Any negative marks on your credit report will reduce your credit score and could make it harder to qualify for a loan from a traditional UK lender.

Will a UK payday lender approve my loan with a poor credit history? 

Payday lenders which are authorised and regulated by the Financial Conduct Authority will have to complete a hard credit check as they are required by law. However, your credit score is only one of the factors which some lenders use to assess the strength of your credit application. If your credit report shows historic late payments or a minor default, your application may still be considered. It is important that the finance is affordable to you, so all responsible lenders will be assessing the affordability of your loan as well as your credit history.

Although the information within your credit report will always be important, the decision will also be based on your income, regular outgoings, recent financial management and the amount you are looking to borrow. Unlike some traditional lenders, affordability factors such as your income and outgoings may be enough for you to be considered, even with a poor credit history.

For those with a history of payment defaults and a low credit score, a UK payday loan may be more accessible than traditional funding channels. Payday lenders often have a higher acceptance rate than traditional banks and building societies, so if you have been refused a loan in the past an alternative lender may consider lending to you.

If you are not eligible for a payday loan, there may be other options available. Firstly, you should think carefully about the urgency of the finance, for example, could a purchase wait until you get your wages? If the situation is urgent, it may be possible to increase your cash flow by adjusting your budget. For example, can you cancel any subscription services or plans with family and friends?

How do I apply for the best UK payday loan? 

When you begin to compare potential payday lenders, you should start by assessing whether you meet their eligibility criteria. Next, take into consideration the various fees for taking out a new credit agreement, for example, the interest rate, potential missed payment fees and even arrangement fees. In addition, depending on the urgency of your situation, you may also want to consider the processing speeds of various lenders. All lenders which are authorised and regulated by the Financial Conduct Authority are required to be fully transparent in all aspects of their lending, so this information should be clear and readily available.

When you are ready to apply, the majority of lenders will offer quick online application forms. The form will ask for key details such as your name, address, employment information and loan requirements. The lender will then assess the affordability of taking further finance, by also taking into account the information contained within your credit report. If your application is approved, many lenders allow borrowers to sign their loan agreements online and the cash may be released within minutes*.

It is important to decide which lender offers the highest chance of approval for your personal situation before applying. Making multiple loan applications will result in multiple checks to your credit file, which could have a negative impact on your credit score and reduce your chances of obtaining credit.

Each time you make an application, the lender will complete a hard credit check which will leave a mark on your credit report. This search can be viewed by anyone which searches your credit report, so too many hard searches over a short period of time may indicate that you regularly struggle with managing your finances.

How can CashFlex help? 

Here at CashFlex we operate as a broker for lenders across the UK, which may be willing to consider credit applications from a variety of applicants. Although it is not possible to apply for a payday loan through our website, it is possible to apply for flexible short term loans with repayment periods starting from 3 months.

Through our alternative and traditional UK lenders, we can help you find a loan for as little as £100 up to a maximum of £5,000. It is also possible to choose terms which suit your individual situation, with longer lengths available for larger loans. For example, if you are looking for just enough to cover an unexpected emergency, it is likely you need to borrow less than £1,000. In this situation, our lenders offer repayment terms of 3, 6 or 12 months.

As with UK payday loans there is no need to visit a branch, instead you can complete our online application form. We will then pass your details across to up to 40 providers which provide the exact loan which you are looking for. These lenders will complete a soft search of your credit file and if a lender is willing to consider your application, we will redirect you to their website. These soft searches are only visible to you, so there is no impact on your credit rating. The lenders simply use the soft search to gain an overview of your current financial situation.

At this stage you will be asked to finalise your application and the lender will complete a hard check of your credit file, which will leave a mark on your file. If the lender decides that your finance is affordable and you meet their eligibility criteria, you will be provided with an offer which you can sign online. The money will then be processed, and the funds could be sent to your bank account in minutes*, although the final processing times will depend on your bank.

Although there are a variety of financial options are available across the UK, you should always think carefully before taking out a loan. If you are struggling to manage your finances each month and your debt levels are rising, there are several organisations which will offer free and impartial advice, including The Money Advice Service, Step Change, PayPlan, National Debtline, the Debt Advice Foundation and Citizens Advice.