Lenders in the UK offer a wide variety of personal loans like a guaranteed long-term loan, short-term unsecured loan, secured personal loan etc. The cash advance and payday loan both are short-term personal loans provided to support the people in financial crisis. Some borrowers mingle both the terms taking them as an alternative of each other, but there is a thin line that makes them apart. Cash advance is a facility of cash withdrawing from a credit card. Although it serves the purpose of instant borrowing, it is not the standard credit card lending. Cash advance facility is available even for the business owners. Flexible cash advance facility is available for salaried and non-salaried borrowers.
The payday loan is another popular instant borrowing option but only for the salaried people. The minimum borrowed amount may be as small as £50; the maximum limit followed by most of payday loan lenders in the UK is £1,000. Payday loan APR may be up to 1000% or even the more. A payday loan is paid in salary attached bank account; therefore, complete amount is repaid automatically on the payday. Although this is a widely available and socially accepted facility despite the high-interest rate, still, you need to be extra conscious to ensure the seamless experience of a payday loan. Here are some aspects that you should fundamentally review prior to take payday loan:
Should You Get A Payday Loan From A Direct Lender?
Payday loan is available at mainstream regular banks, credit unions and direct lenders both. Your regular bank will make sure that you are a good borrower reviewing your credit report. Therefore, if you are bad credit score holder, getting payday loan from the regular bank is a tough task; still, you must try it at the best because of the excellent cost benefit. The other flaw with this choice is that hardly any bank offers same day online payday loan; it is a time taking process that may need time-consuming leg work also in addition to documentation. Same is the case with credit unions; however, you get little benefit of being a member of that credit union. The last option, you are left with, is direct lenders. Direct lenders provide pay advance loan through simple process because of the nature of taking risk of non-repayment. Approaching to 2-3 direct lenders for getting same day instant decision guaranteed payday loan is the best dependable way; comparing 2-3 proposals helps you get the best-priced deal.
Benefits of Direct Payday Loan
The growing popularity of salary day loan confirms that the UK households prefer this borrowing facility despite the high cost. Several benefits keep the wages day loan preferred choice of financially tight salaried people:
- It is obtainable with no collateral
- No credit check – credit score becomes less important
- Ideal for short-term budget problem
- Legal – regulated by FCA
- Clear terms and interest rate
- No manual funds transfer or cheques
- No long-term commitment
- May help building your credit score
Best Direct Lenders for Payday Loans:
Payday loan lending industry is regulated by FCA; since then, the lending industry has made massive transformative changes to serve the customers better. Because of thick presence of direct lenders in the UK’ lending marketplace, choosing the best direct lender for payday loan becomes a challenge for the first time borrower. Here is the list of some prominent lenders with specialisation in same day payday loan approval:
Uncle Buck Finance LLP is the UK’s leading payday loan providing agency since 2004. The fully operational direct lender provides small amount short term instalment payday loan. The company provides straightforward solutions for emergency financial needs. Payday loan is available at 1249.2% APR. ‘Apply Now’ button takes you to the application form; where you need to fill up the simple specific details including the required loan amount. To avail this Financial Conduct Authority’s (FCA) price capped facility, you need to fulfil the following criteria:
- Over 18 years’ age
- Permanent UK resident
- In employment
- salary bank account
- Valid debit card
- Working email address & mobile phone
- Not in debt management or under a bankruptcy proceeding.
- Agree to give credit check
QuickQuid is an authorised, and Financial Conduct Authority regulated lending agency. A payday loan is available at 1294.1% APR Representative. In addition to being VeriSign Secured™ and McAfee SECURE™, the agency is the member of CIFAS also that gives more sense of security. The first time borrower can apply for a payday loan up to £1000, while the returning customer can apply even for £1500 payday loan. The application process is fast and straightforward. The eligibility criterion is the same as mentioned above.
This agency, launched in 2010 as an online lender to offering short-term personal loans, operates on Stride Financial. It is a good choice if you need a high amount of payday loan because the agency provides £150 – £5,000 amount payday loans with instalment repayment facility. The agency uses security technology like VeriSign Secured / McAfee Secure to protect valuable personal information. The membership of the Credit Industry Fraud Avoidance System (CIFAS) and Consumer Finance Association (CFA) also gives another reason to deal with this company.
Satsuma’s payday loans span from £100 to £1000. These can be paid back in 3 to 12 months. As a direct lender, the company has been in lending business for over 100 years; apart from it, there are plenty of other reasons also to consider this direct lender for emergency financial needs. Online friendly customer care team takes care of all your concerns. If approved, the hourly pay-outs are made between 6am-11pm.
Unsecured payday loans from £100 to £2,500 are directly available online through an easy and straightforward process. The online application process hardly demands any documentation. The salary day loan is provided at Representative 1293% APR. The agency with ‘TrustScore 9’ offers a high amount of payday loan for more than the month also to help the borrower in repayment. Borrowers of all kinds of all kinds of credit backgrounds can apply for this fantastic FCA regulated facility.
On Stride Financial is operated by CashEuroNet UK, LLC since 2014. The 4.80/5 rated agency deals in variety of personal loans including the £50 – £1000 salary day loan. Transparency is the mantra of the agency to make the clients feel confident in dealing with genuine lender. The agency is part of Enova International, Inc., which has provided financial solutions to more than five million borrowers. Funding is provided within 10 minutes after client’s approval. Instant decision small amount instalment loans may be the good option for the borrowers looking for smaller loan with longer repayment period.
It is the part of GAIN Credit LLC- a subsidiary of FCA regulated GAIN Credit, Inc. Lending Stream is providing a variety of short-term loans since 2008. The agency offers a small number of loans as the alternative to payday loans with an added advantage of a more extended repayment period up to six months. It is a five-star credit agency providing payday loan at Representative 1333% APR.
New Horizons, a registered trading name of RIFM Limited, is a broker, not the direct lender. The agency offers £50 to £2,500 payday loans at a competitive price. The flexibility in the repayment period makes this agency an excellent choice for short-term large amount needs. The agency offers an automatic asking form; that allows getting instant 100% no obligation quote for the required money. An approval criterion is simple, so the approval rate is too high. No credit check unsecured short-term payday loans are also available at same ease.
Fully authorised by the Financial Conduct Authority PiggyBank, launched in 2012, aims to learn from the market leaders and to add some innovative flairs to financial products in high demand, so that, even the bad credit borrowers could get the best deal for the short-term and long-term loans. ‘Customers First’ is the operational approach. Maximum APR is 1698.1%. The personalised support makes this agency a preferred choice of hundreds of salaried borrowers with not so good credit score.
The numerous types of short-term unsecured loans are available online at the UK loan stores, but Payday loan has been the most sought after unsecured personal credit type. Bad credit score doesn’t make the borrower disqualified automatically. The short-term payday loan has many people to fix the temporary financial hiccups. Early repayment facility makes the borrower free from the responsibility of long-term monthly repayment; however, some of the above referred direct lenders offer flexible repayment period also. As the APR is quite high, so, a payday loan is advised only when you have no other option to manage a financial emergency.