Find out more about what happens when you apply for a short term loan with CashLady (including information on charges). You can either read the information detailed below or, click on one of the shortcut links to jump to the relevant section.Get my personalised quote
Applying for a short term loan with CashLady
Your application will be considered by our trusted panel of short-term loan providers – as such, we can dramatically increase your chances of getting approved for your loan.
When you apply with a specific lender your either get rejected or accepted. However, when you apply with us we present your application to around 15 trusted, well established lenders therby increasing your chances of being accepted.
As a specialist payday loan broker, our service is completely free of charge. We will not charge you anything at any point. Instead, we receive a fee from our lenders once they have successfully funded your loan.
Beyond this, we promise to never work with any other fee-charging loan providers because we strongly believe in operating our business in an ethical manner.
We work very closely with our lenders to make sure they get only the best quality loan applications and therefore fund more applicants through us.Get my personalised quote
What happens after you have submitted your application?
When you apply for a payday loan, you will need to fill in some personal details, including:
- Home address
- Contact details
- Work employment
- Regular personal outgoings
When you have filled in your details, we will pass your information to our panel of lenders to see if they can approve your loan application.
Please note that some of our lenders may offer you a loan for an approximate amount, which could be higher or lower than the exact amount you applied for.
If your short-term loan application is accepted by one of our lenders (or provisionally accepted, pending some further checks), you will be sent directly to your loan agreement which will be situated on the lender’s website.
You can then take time to read the terms and conditions of your loan properly to ensure that you are happy and comfortable with their offer.
If you are happy with everything, you will then deal directly with that lender.
The amount of time a payday loan offer is available for will depend on the lender. Most will keep the offer valid for a few days. Others may only keep the offer valid the first time you are redirected to their site.
What are payday loan charges?
When you take out a payday loan, you will usually be expected to repay around £24 for every £100 that you borrow for 30 days. This is because of FCA price caps.
Most importantly, you will never repay more than 100% of the money borrowed.
Short-term loans can vary depending on how long you take the loans out for.
Please see the charges table below.
With a short-term loan, you may be offered the opportunity to revise your loan duration during your application, allowing you to pin point exactly how long you need the loan for.
Some lenders may charge other fees. If so, these will be made clear to you in the loan agreement.
*The calculator is for illustration purposes only and may not reflect the exact actual cost which depends on the lender.
CashLady does not charge any fees for loan applications or charge any membership fees.
If you are matched with one of our payday loan providers, you will need to pay the interest and charges associated with the offer from that lender.
Charges can vary depending on:
- The type of loan you are offered
- Which lender you are matched to
- Current financial situation
Because of this, the charges below are illustrative and we do not guarantee that this is the amount you will repay if you accept a loan offer.
However, the lender will give you a clear description of any and all costs involved in your loan. You will have time to consider before choosing whether to accept it.
The loan types that you may be offered are
- Payday loans
- 1-6 month short loans
- Line of credit
- Guarantor loans
The lenders that will see your loan application will depend on your needs and circumstances. The loan requirements will come from your application and may depend on the loan amount and duration.
What is APR?
The annual percentage rate can be confusing, as it’s usually extremely high for payday loans.
While short-term loans tend to be a high-cost way of obtaining credit, you don’t repay thousands of pounds for borrowing a hundred pounds either.
In fact, the FCA have ruled that no borrower will ever pay more than double the original loan value.
The reason the APR is so high is because of the short-term nature of payday loans.
Because they are usually only for a number of days or weeks, the percentage is multiplied and compounded in order to show an annual percentage rate (e.g. if you borrowed over the course of a year), in line with EU regulations.
If you are looking to take a personal loan out over 6 months or longer, a payday loan may not be the most suitable loan product for you. It will probably help if you consider some of the alternative short-term products such as a Guarantor loan, or traditional instalment loan.
If you are considering a payday loan because of an unexpected emergency situation and you know that you will be able to comfortably pay the loan back in a few days or weeks, we suggest that you pay close attention the actual amount of interest paid (no more than 0.8% per day) instead of the high APR figure found on your loan offer.
We appreciate that this can be confusing, so please take the time to look at any representative example and loan offers you receive to make sure you understand how much you will be repaying.
How does a Payday Loan Repayment Work?
In the majority of cases, loan repayments will be set up automatically when you agree and accept your payday loan offer.
It is usually set up so loan repayments will be taken on, or just after your payday.
We work with different types of lenders offering different types of short-term loans.
While the majority are credit lenders (short-term loans repaid in one instalment), we also work with lenders who offer short term personal loans with up to six monthly repayments, and/or lines of credit, which are a per-day method of borrowing money.
Types of Short-term loans in the UK
Traditional Payday Loans
A payday loan is a very short-term loan, usually for under a month. They are designed to be repaid when you receive your next monthly wage. If you want your loan application to only be seen by payday lenders, select one month’s loan duration on your application.
If you take out a payday loan from one of our lenders, you will likely need to repay the entire loan amount in one instalment.
This is usually on or around your payday in order to be as convenient as possible.
This will typically cost you around £24 per £100 that you borrow, although this will vary between lenders. See More on Charges.
Most lenders charge by the day (up to 0.8% daily interest), so if you repay your loan earlier in the month, you will benefit by repaying less interest overall.
Because of the short-term nature of the loan, the annual percentage rate (APR) can be very high. Although they’re designed to be repaid within a month, the annual figure shows what you would repay over a year at the same interest rates. However, the way the loans are designed, they should be repaid within around 30 days and no longer gain any interest.
While many lenders will allow you to roll over your payments a limited number of times, we always recommend repaying your loan on time, as agreed. Otherwise, it can become a far more expensive way to borrow money than intended.
What are Short-term loans and flexible loans?
A short term loan or a flexible payday loan is an instalment loan that you normally repay with monthly repayments.
They usually last for 3-6 months. Some lenders offer much longer loans, up to 18 months (although for these loans, you will have an opportunity to review and potentially change the amount you want to borrow and the number of repayments you want to make).
The APR on these loans can vary from 49.9% to 1295.5% depending on the duration of the loan, the loan tpye and the lender product.
While they tend to be more costly than payday loans (because of the longer loan term duration), the monthly repayments are normally for a lower amount and the APR is generally lower (e.g. 278% APR Representative).
Many consumers prefer to stretch out their repayments in this way. Please see our Charges for more information about how much these instalment loans cost.
Despite costing more, the Annual Percentage Rate is often lower than that for payday loans. However, they are still comparatively high cost compared to longer-term loans. This is partially because of the actual cost of the loan but is also because of the relatively short-term nature of it.
Because it is repaid within a number of months, the figure is compounded to reflect how much it would be if you were to borrow at those rates for a full year.
If you want your loan application to be seen by personal loan lenders as well as payday lenders, select a maximum amount of monthly repayments of more than one month/ payment.
We cannot guarantee the amount you are offered if accepted, or whether or not you will definitely receive a personal loan offer, but your application will be shown to both kind of lenders.
What Is A Line of Credit?
A line of credit is a more ongoing credit solution, which allows you to add additional funds when you want and charges you for the days when you use the credit.
In some cases, it can be linked to your bank account and setup to automatically add credit whenever you are about to go over your overdraft limit to help you avoid charges.(e.g. Safety Net Credit).
A line of credit is an amount of money available to use for a longer period of time. It can work like an add-on to your overdraft limit - helping you avoid unnecessary unauthorised overdraft charges.
Line of credit is also charged on a day-by-day basis, so you only pay for the days that you use it.
In order to use a line of credit, you will need to use internet banking. You can then use a line of credit in one of two ways.
1. You can either log back into it in order to add emergency funds as and when you need them,
2. You can have it linked to your bank account, so if you get too close to your overdraft limit, funds will automatically be added to your account.
Once you sign up for a line of credit, you can use it or not use it as you wish.
Because you are charged by the day, it is best used for as few days as possible in order to get the best value from it.
Used correctly, it can be cheaper than unauthorised overdraft charges.
What are Guarantor Loans?
Guarantor loans are longer-term loans for larger amounts of money. You will need a willing friend or family member prepared to take over the loan repayments if you do not repay on time.
Because of the longer time frame involved with guarantor loans, you may be offered an opportunity to borrow more. You might also be given more options with regards to how many repayments you will need to make.
Guarantor loans can be for up to £5,000.
In order to be a guarantor, your friend/family member will need to have a good credit rating as well as owning their own home. Please note that even though the guarantor will need to be a homeowner, their home will not be used as collateral.
The guarantor will be credit-checked though, in order to assess their suitability. However, loan repayments will be made by you.
Because of the presence of a guarantor, it is possible that you will be accepted for a guarantor loan even if not employed full time. Affordability checks are still likely to be carried out though.
If approved, the loan will be sent to your guarantor rather than you and they will then need to forward it to you. This is to prevent fraud.
Interest will be added to the loan on a daily basis, so you may be able to reduce the overall cost of the loan by repaying early.
You can usually repay by direct debit, debit card, credit card, online or over the phone. You can also make payments via PayPoint in a number of high street and local shops.
You will also be able to log in to your account to help you manage it.