Lender in Focus 3.2: PaydayUK Advantages

PaydayUK Advantges

PaydayUK Advantges

In order to fully understand a lender, it can help to look at what makes them unique. CashLady takes a look at PaydayUK advantages.

PaydayUK advantages include flexible loan terms

PaydayUK offers customers short term loans that they can choose to pay back within 30 days or up to 12 separate instalments.

If you want to borrow less than £500, you will only have the option to repay within 6 instalments.

Any amount over £500 can be paid back from 1 to 12 monthly repayments

Flexible loan amount

Customers are able to choose to apply for loans from £100 to £2,000.

Responsible payday loans

PaydayUK says they are committed to responsible lending. On their website, they mention they are focused on the borrowing needs of their customers and treat customers in a courteous and helpful manner.

PaydayUK indicates they will assess whether a customer can afford to take out any payday loans and if they are able to repay them.

Borrowing costs

PaydayUK’s daily rates range from 0.36% to 0.8%. They say the interest you will get depends upon your loan term.

This means you should pay between 36p to 80p per day, per £100 borrowed.

This compares favourably with many other lenders in the market. Also, it shows Payday UK’s commitment to offering an industry leading product.

Same day transfers possible 

If you are a new customer, your application must be received and completed by 3 pm to get a same day transfer. PaydayUK deposit funds on the hour, every hour, from 4 am to midnight.

You can apply over the telephone and online

PaydayUK advantages include the fact that customers are able to apply both online and over the telephone by calling 0330 024 1642. Some loan providers who offer instalment loans and short term loans will only let you apply online.

Application form

You can apply for a loan from PaydayUK’s homepage.

The first part of the application process involves selecting how much you would like to borrow. Along with, how many repayments you would like to make to pay back your loan.

You will then be shown a ‘Repayment Summary’. This summary will show you how much you could expect to pay back. However, the actual amount you will have to pay back and your repayment summary could vary based on affordability and pay dates.

After clicking ‘Apply Now’ you will then be taken to a page where you will be required to choose your ‘loan purpose’ from a drop-down list.

You will then need to enter your personal details including your phone numbers, how many dependents you have and your marital status. Also, you will need to inform PaydayUK of whether you own a car and how you pay for your mobile phone.

You will then need to give your address (including your previous address if you have been at your current address for less than 2 years). PaydayUK also need your income details. This includes your employment status and occupation and your monthly expenditure.

How much you pay in:

  • insurance
  • childcare
  • utilities
  • transport
  • mortgage/rent
  • other credit commitments

are also required.

You will be asked if you are declared bankrupt or whether you are with a debt management company.

Finally, you will be required to provide your bank details, including stating how long you have been with your bank.

After you have completed this information, you will need to accept PaydayUK’s terms and conditions. Let them know if you want to be informed of the latest offers and services from PaydayUK, as well as from other third parties.

How long will the application take?

If you have all the required information to hand, the application form should take no more than 10 minutes to complete. For many customers, it will take less than 5 minutes.

Once you have submitted your application you should receive a decision. If you are approved for a loan, you may be given up to 5 loan offers based on how much you wanted to borrow and your affordability. You are then able to select the offer that suits your financial circumstances best.

Learn more about the advantages of PaydayUK

You must ensure your loan amount and monthly repayment(s) are affordable for you. After you have selected the offer you wish to proceed with, you will then be asked to enter your debit card details. Then, proceed to viewing your loan documents.

You should read this information carefully and make sure you fully understand it. Once you are happy, you can then electronically sign your loan agreement.

Applications to PaydayUK from new customers must be received and completed by 3 pm. That is if you would like the money to be transferred to your account on the same day.

Who can apply?

To apply for a loan from PaydayUK, you must be over 18 years old and in permanent employment. Or, receiving a pension or disability benefit/living allowance. You should also be receiving more than £417 after tax per month. As well as, have a bank account with a valid debit card and meet their credit criteria and affordability assessment.

How can I repay my PaydayUK loan?

PaydayUK takes payments automatically on the contractual date(s). This is done by using your debit card and the CPA you agree to give them if you sign their loan agreement.

We cannot find any detail on their website relating to early settlement. But given the approach the industry normally takes, we would hope loans could be paid back early if desired.

Will I be credit searched?

Yes, PaydayUK will carry out a credit check on you before they decide whether they can approve your loan application. All PaydayUK’s loans are also subject to their lending criteria and an affordability assessment.

What is PaydayUK’s cancellation policy?

If you change your mind about your application, you can cancel by using PaydayUK’s live chat facility or call one of their advisors on 0330 024 1642.

If you have already received your loan and have changed your mind, you can withdraw up to 14 days after you have received your agreement. This is your right under the Consumer Credit Act 1974.

You would need to then pay back the loan amount and any interest you have accrued to date.

Like this post? Read the next in the series!