What is a payday loan?
Before you search for the ‘best payday loans’, it’s important to know exactly what payday loans are and how they work in the UK.
A payday loan is a sum of money borrowed from a lender that must typically be repaid in full within a four-week period.
You will be charged for borrowing money. This is called ‘interest’ and is required to be repaid at the same time as your payday loan.
Payday loan alternatives: short-term loans
When looking into payday loan comparisons, you might come across short-term loans as an alternative.
A short-term loan differs to a payday loan in that borrowers are presented with a broader range of repayment terms, enabling them to spread the cost.
CashLady is a UK-based credit broker, working with a large panel of responsible lenders of short-term loans. Depending on the amount of money you apply to borrow, you could repay your loan across a term between 3 and 60 months. Your loan will need to be repaid in monthly instalments, which will include interest.
Direct lenders of short-term loans in the UK
CashLady is proud to work with a panel of responsible lenders, all of whom are authorised and regulated by the Financial Conduct Authority (FCA). We have put together a list of some direct lenders in the UK. The lenders on our panel offer short-term loans which, depending on the amount of money borrowed, could be repaid up to 60 months.
| Lender | Min / Max Loan Amount | Min / Max Loan Term | Rep APR% |
|---|---|---|---|
| 118 118 Money | £1,000 - £5,000 | 12 months - 36 months | 49.9% |
| Bamboo Loans | £2,000 - £15,000 | 12 months - 60 months | 34.9% to 69.9% |
| CashASAP | £200 - £750
First-time customers can apply for a maximum of £400 | 3 months - 6 months | 1266.2% |
| CashFloat (Payday Loan Product) | £300 -£1,500 | 3 months - 9 months | 611.74% |
| CashFloat (Personal Loan Product) | £1,500- £2,500 | 6 months - 9 months | 611.74% |
| Creditspring | Varies between membership type. Min: £200 (x2 times a year), Max: £12,000 (x2 times a year). A monthly membership fee will also be charged. | 6 months | No interest charged on loans; however, a monthly membership fee must be paid. 48.1% - 88.8% |
| Drafty | £50 - £3,000 | N/A | 96.2% |
| Evlo | £1,000 - £15,000 | 18 months - 60 months | 99.9% |
| Finio Loans | £500 - £5,000 | 12 months - 36 months | 39.9% |
| Fund Ourselves | £100 - £1,500 / £800 for new customers | 4 months - 6 months / 4 months maximum for new customers | 1310.4% |
| Lending Stream | £50 - £1,500 / £800 for new customers | 6 months - 12 months | 1271% |
| Loan Pig | £50 - £1,500 | 1 month - 12 months | 1261% |
| Loans2Go | £250 - £2,000 | 18 months - 24 months | 679% |
| Moneyboat | £200 - £1,500 / £800 maximum for new customers. | 2 months - 6 months | 1267.9% - Interest rate fixed at 0.79% per day |
| Quidmarket | £300 - £1,500 | 3 months - 6 months | 1303.10% |
| Salad Money | £500 - £1,200 | 12 months - 18 months | 79.5% |
| Savvy | £300 - £1,200 | 6 months - 12 months | 1290.2% |
| The Money Platform | £250 - £1,000 | 1 month - 3 months | 497% |
All information correct as of March 2025.
CashLady Representative 79.5% APR
Is it better to have a longer or shorter term loan?
The answer to this question depends entirely on your personal circumstances and finances.
The longer the term, the more interest you’ll pay, although you’ll have more time to repay the loan.
A shorter term offers less time to repay the money you owe, but you won’t pay as much interest as you would with a longer term.
Before deciding on a repayment term, you should think very carefully about your monthly budget. Repaying a loan should never leave you short when covering the cost of your essential outgoings, such as bills, rent or mortgage, and food.
Who are the best payday loan direct lenders in the UK?
There is no set answer to this question. A lender that’s right for one person may not be the right match for somebody else.
You should think about what you want to get out of a loan and then begin your comparison from there. For example, receiving the money quickly might be the most important thing for you. In this instance, you might look for a lender who offers the possibility of a same-day payout if your application is approved.
Things to look out for when doing a payday loan comparison
When starting your payday loan comparison search, there are certain things that you may wish to look out for.
1. Check your eligibility
You must make sure that you meet the lender’s eligibility criteria before you make an application. This will vary between lenders, but, generally, you’ll need to be over the age of 18; be a UK resident; have a UK bank account and valid debit card; and have a regular source of income paid directly into your bank account.
2. Annual Percentage Rate (APR)
APR refers to the overall annual cost of the loan and includes interest and any standard fees. The lower the APR, the less the cost of borrowing. APR is one of the key factors to pay attention to when comparing loans.
The interest rate you could be offered will depend on several factors, including your credit score.
3. Fees and charges
Some loans may come with standard and/or additional fees, such as fees that will be charged in the event of a late or missed repayment.
It’s also worth checking to see whether you’d be charged for repaying your loan early.
4. The amount of money you apply to borrow
You should only ever borrow the amount of money that you need. Before you apply for a loan, you might check to see whether the lender offers the amount you need.
While CashLady do not work with any lenders of payday loans, you can search for a short-term loan between £100 and £10,000.
5. The repayment term
Payday loans are generally required to be repaid within a month. You should make sure that this is suitable for you.
If you think you may need longer to repay the loan, you may choose to do some further research into short-term loans as a payday loan alternative. Short-term loans usually range from a couple of months to several years, depending on the amount of money you apply to borrow.
6. When will your money be sent?
It’s not just payday lenders that could send your money on the same day your application is approved – some short-term loan lenders, including a number of those on the CashLady panel, could too.
Please be aware that the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.
Compare bad credit payday loans
It may be tricky to get a payday loan with bad credit.
When searching for bad credit payday loans, you’ll need to take notice of the APR. Bad credit loans could come with higher rates of interest, so you might compare a range of bad credit payday loans to find the one with the lowest APR.
CashLady work with several UK-based lenders of bad credit short-term loans who may be willing to consider your application.
Compare payday loans for no credit history
If you have no credit history – otherwise known as having a ‘thin’ credit file – it’s likely that you’ve never paid bills or borrowed credit before. With no indication of how you’ll manage credit, lenders may consider your application as ‘riskier,’ which could negatively impact your chances of getting approved for a loan.
As with bad credit loans, loans for people with no credit history could come with higher interest rates, so when comparing payday loans, it’s wise to look closely at the APR.
A number of UK lenders, including several on the CashLady panel, specialise in short-term loans for people with bad credit.
Using a credit broker
Using a credit broker, such as CashLady, could help to take the guesswork out of applying for a loan. Rather than spending time searching for a loan yourself, we’re able to scan our panel of lenders for a loan to suit you, based on the information provided on your application.
When you apply for a loan directly with a lender, they will carry out a hard search on your financial history. A hard search will leave a mark on your credit file, which will be visible for up to 12 months. Making multiple credit applications directly with lenders within a short space of time could result in several hard searches. This will damage your credit score.
While none of the lenders on the CashLady panel offer payday loans, you can search for a short-term loan.
Things to think about before you compare payday loans
A loan is a serious financial commitment.
Whether you’ve decided to compare payday or short-term loans, there are several things you should carefully consider before making an application.
- What do you need the money for? Short-term borrowing should not be considered as a long-term financial solution. Loans are commonly used to fund urgent expenses that simply cannot wait, such as a broken boiler or crucial car repairs.
- Is your need for money urgent? If it can wait,is it possible to save up instead, or ask friends and family for help? Saving up will take longer, but you won’t need to pay any interest. A loved one may be willing to lend you the money you need at a lower interest rate than a high street lender. They might even offer to lend you the money interest-free.
- You might be confident that you’re able to afford the loan in your current financial position, but have you thought about how you’d continue to manage your repayments if your situation were to change; for example, if you lost your job?
- You should be aware that making a late repayment or missing one altogether could seriously harm your credit score. In addition to this, you may be charged a fee.
- It’s worth familiarising yourself with your credit score, so you can gain an understanding of the types of loan and interest rates you might be eligible for. Having a bad credit score doesn’t necessarily mean that your application for a loan won’t be considered, but it may limit your borrowing options.
- You should only ever borrow the amount of money that you need and can afford to repay.
Experiencing money worries? You don’t need to suffer in silence
If you’ve taken out a loan that you’re struggling to repay, you should contact your lender as soon as possible. They will appreciate the fact that you have reached out and will work with you to put a plan in place that could help to ease the financial pressure you’re feeling.
You can access free, confidential money and debt management advice through charities and organisations such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.