Financial Help at Hand

Questions and Answers about Payday Loans

Need a small cash sum for a short period?

Apply Now

Payday Loans

  • Borrow up to £20001
  • Trusted lenders only
  • Payouts within 24 hours
  • Responsible lending policy
  • Alternatives available

Answers to Your Loan Questions

Below are our most frequently asked questions about payday loans. We've tried to provide a comprehensive answer for each one.

Payday Loans Q & A

What are payday loans?

Payday loans are small cash loans with the very specific purpose of getting you through a short term budgeting problem until your next pay day. On that day you should repay the loan in full. Payday loans should never be used to try to resolve a medium or even long term financial shortfall. The costs are simply much too high.

This is an example of how a payday loan could legitimately be used - your washing machine breaks down and will cost £150 to repair. Your normal monthly budget it tight. You don't have any savings so you need a small amount of cash to get you through. You use a payday loan of £150 and on your next pay day repay the lender the £150 plus (approx) £45 interest.

Who could consider using a payday loan?

If you are in paid employment with a regular income but have few savings to draw upon in the event of a financial emergency then a payday loan could make sense. But only if you can repay the loan in full on your next pay day from your pay only (i.e. don't take out a new loan to repay this loan!).

How can I get a payday loan?

Simply complete our enquiry form and we'll find you a payday lender who can help you in principle. You will then need to complete a final stage of the online application process. Lenders typically 100% online processes you you will not need to handle any paperwork, and you should receive your loan the same day directly to your bank. Please remember that lenders operate responsible lending policies.

How are payday loan charges calculated?

The charging structure of payday lenders is pretty straightforward. They charge a fixed amount for each £100 you borrow and then you repay the full amount on your next pay day. The costs to truly avoid are the so-called roll-over fees. So, make sure you are able to repay the full amount of the loan plus interest on the agreed date.

What are my repayment options?

In terms of timing the only sensible thing to do is repay the loan amount and interest in full on the date you agreed with the lender. While your lender may agree to let you roll over the loan for another period you will accrus further charges and the debt will simply get larger. This is to be avoided. Do not take out a payday loan unless you can repay it and the interest in full when you agreed to!

Remember that the lender will take the money from your bank account as they have your debit card details. You need to ensure that you have a sufficient balance in your account on the day the lender will take the funds from you. If you do not extra costs will be triggered.

What should I consider when borrowing?

The first thing is that we would urge you not to borrow if the chances of you repaying on time and in full are remote. If you borrow knowing you cannot repay the loan the this is a type of fraud. If you are constantly struggling to balance your domestic budget then the last thing you need is more debt. In this situation you might do better getting some financial advice instead from an organisation like the Money Advice Service.

If you do borrow then keep in mind that payday loans are an expensive short term solution. Are there cheaper ways to get the emergency cash you need? Can you borrow from friends or family?

With a payday loan lenders will get access to your bank account using your debit card. These so-called "continuous payment authorities" mean banks can take money from your bank account without having to check with you first.

What should I do if I am going to struggle to repay on time?

As is the case with any debt, whether it be a loan or a bill from a utility company, you must confront the issue if you doubt that you can pay on time. You must contact your lender and discuss the options open to you. Don't delay.

If you have already missed one or more repayments then your debt will be increasing fast. A good idea is to also get in touch with organisations like:

What alternatives are there?

The problem with payday loans is that while they are very "easy" to organise they are expensive and inflexible. The fact that you have to repay the full amount plus interest on your next payday means that something else in your budget has to be cut next month to compensate. This isn't always possible hence the risk of the debt rolling on and the debt getting larger as further interest and charges accrue. This is the downward spiral you need to avoid.

Fortunately there are some alternative "short term cash loans" you could consider. Repayment terms are typically longer (if you wish) so that monthly repayments are lower. The APR% will be lower too, but keep in mind that the total amount you repay may actually be greater than with a payday loan because you are stretching out the repayment period. The options are (in lowest to highest cost order):

You can also take advantage of our Find Loan tool to explore your loan options by answering just 4 quick questions.

Are payday loans bad for your credit rating?

In simple terms no. As with all credit if you repay it in full and on time then that good credit management behaviour will be recorded and it should actually enhance your credit file.

Can I get a mortgage if I have or have had a payday loan?

It is rumoured that some mortage lenders will treat the use of a payday loans as an indicator that your personal finances are not in order - i.e. you have resorted to the use of payday loans to cover cash flow issues. This could be treated by a potential mortgage lender as worrying sign. We would always recommend that you treat the underlying cause rather than resort to a payday loan.

Can I get a payday loan if I don't have a bank account?

No. All payday lenders issue their loans direct to the applicant's bank account using the "faster payment" system, or via BACS. If you don't have a bank account then you could consider a doorstep loan instead.

What happens if I can't repay my payday loan?

Here are some things to consider:

  • As you approach the repayment date for your loan if you don't think you'll be able to repay it you must contact your lender a.s.a.p. They are obliged to consider your situation and if necessary propose an alternative repayment plan.
  • You must be clear about the terms of the loan as you may incur extra charges should you fail to repay the loan.
  • Failure to repay your loan on time will be reported to the credit reference companies. This will be registered on your credit file and may hamper your ability to get credit in the future.

Never take the issue of credit lightly. You should only ever borrow if you believe you will be able to repay the loan, and you should be prepared for consequences if you fail to. It always makes sense to talk to your lender as soon as you suspect a problem.

About Payday Loans

Representative Example

Loan Amount


Monthly Repayment


Loan Term

4 months

Total Repayment


Actual Interest Rate

292% (vrbl)

Representative APR


Apply Now!

Warning: Late repayment can cause you serious money problems. For help, go to

1 Subject to application being approved by the lender. Not all lenders are able to provide up to £1000.

No Fees Broking Service

Answer 4 quick questions to discover your loan options.

Find Loan Now

Our Promises

  • No Fees or Charges
  • Smart Online Service
  • Stay Safe & Secure
  • Independent & Impartial
  • Trusted Partners


Online Service

When it comes to getting you your loan our online service is second to none. In fact has scored 4.6 out of 5 based on 308 ratings & 53 user reviews for its payday loans service.

Used our website? Write your review now.