privacy policy
Cashlady speaking to people on the street regarding financial emergencies

Payday Loans

Payday loans are designed to help people when they have a cash emergency. At CashLady we have helped millions of people apply online for their best payday loan options, quickly and safely.

What are payday loans?

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

Representative Example: Amount borrowed: £250 for 3 months.Number of repayments: 3.Interest rate p/a: 292% (fixed).Each repayment amount: £137.21.Total repayable: £411.63. APR 1272% Representative

What is a Payday Loan?

A Payday loan is a form of short term credit, normally used by people who require a quick cash solution to help them through a financial emergency.

This type of personal finance has become increasingly popular in recent years. Consumers have the ability to make quick, discreet, online loan applications - often from their mobile phone. The speed and convenience of so called "instant" online loans can be very valuable in an emergency.

As a result, millions of people no longer need to visit a physical, high street branch to borrow money. Aside from the convenience factor, it also means that people enjoy a greater level of personal privacy.

Payday loans: Key information

Infographic: Payday loans key information

Payday loans UK

The UK short term loan market is worth somewhere in the region of £2 billion.

Customers can choose to deal with a payday lender directly, or use a credit broker to help get the best offer.

In 2014, the FCA took over from the FSA with a firm mandate of regulating the HCSTC sector. This meant that any business wanting to offer loans of this nature (or act as a broker) would require FCA authorization to operate.

As the industry developed and consumer appetite for payday lending grew, some short-term credit providers began to offer wide range of financial products, with many choosing to offer loans beyond 30 day loan terms.

short-term credit lenders offer different types of payday loans

Who can apply for a payday loan online?

Anybody can apply for a payday loan, but each loan provider will have specific lending criteria stating who it will lend to.

As a rule of thumb, you will need to be at least 18 years old to apply for this type of finance.

You should also be a UK resident and will normally need to be in full time employment.

Most Lenders will insist that borrowers have a UK bank account into which your funds will be deposited. Your loan repayments will also usually be taken from this account.

Why choose a payday loan?

Flexible repayments

Payday loans are known to be one of the most flexible loan products available in the UK. Normally giving people the option to pay the loan early, without incurring additional fees.

Online loan application

Most short term credit providers give borrowers the opportunity to apply for their loan online. Loan applications are usually quick, simple and straightforward.

Online loan application

Some lenders promise to review your application instantly. If you are approved and no supporting documentation is required, you could have funds deposited in your bank account the same day as your application.

there are many reason why you may consider to choose a quick payday loan over other short-term credit alternatives

Access to quick cash

Some lenders promise to review your application instantly. If you are approved and no supporting documentation is required, you could have funds deposited in your bank account the same day as your application.

You should check if your bank accepts Faster Payments in order for this to be possible.

Applying for a loan with a high street bank can take much longer. The application process is often lengthier and funds do not tend to be deposited the same day. If you are in a situation where you need access to money in an emergency, the traditional bank finance route may not be suitable.

Shorter loan terms

Personal loans normally require a commitment of 12 months or more. If you borrow from a payday lender you could have a loan term of as little as 30 days.

Smaller loan amounts

Banks also tend to only offer loans over £1,000, whereas payday lenders are much more flexible and you can often borrow as little as £80.

This means you can limit your credit exposure to a manageable level. It can also increase your chances of approval, as smaller loan amounts mean a reduced risk when compared to larger borrowings.

If you need a short term solution for a financial emergency, a small payday loan could be the better solution.

Many lenders

There a many payday finance providers in the UK - this means you having a variety of choices. All High cost credit providers should be FCA authorized.

Flexibility and speed of the application process, arguably make payday loans a much more convenient form of quick finance than a bank loan.

How do I apply for a payday loan?

Apply direct with lender

Applying for a payday loan should be quick and easy, as you can carry out the entire application process online, from the comfort of your own home.

You will need to provide important information such as your address, employment details and expenses and answer some questions about your income and expenditure.

If approved, the money could be sent straight to your bank account, in as little as a few hours. The amount of time it takes for the cash to reach your account depends on the lender’s terms and conditions, as well as your bank’s payment terms, such as whether your bank accepts Faster Payments.

Apply through a credit broker

You could also apply for a payday loan with a specialist loan broker, such as CashLady.

To do this, you will need to complete an application form online, so your application will be instantly seen and considered by a trusted panel of short-term lenders.

Applying through a specialist broker could increase your chance of being approved for a loan, as you are submitting your details to more than one lender in the same application.

Cashlady pass an application to a trusted panel of short-term credit lenders

Our is free of charge. Additionally, we guarantee that we will never work with any fee-charging loan providers, so you know that by submitting your application through us, you will not be charged an application fee for your loan.

‘Bad credit’ payday loans

It is often believed that Payday loans are designed for people who have bad credit.

Having bad credit doesn’t make you any more suitable for this type of financial product.

Like any other FCA regulated credit provider, payday lenders need to undertake extensive affordability checks before issuing any form of credit, which means that your credit score and payment history will be properly assessed. If you your credit score is very low, it could mean that you will not be eligible for this type of finance altogether.

You will normally need to be in employment to be considered.

Poor credit history doesn't guarantee that you get approved

Payday loans no credit check

‘Payday loans no credit check’ is a popular search term online.

Despite a common misconception that some lenders may offer credit solutions without undergoing a credit check. If you are applying for any type of finance through a regulated provider, you should anticipate a formal credit check before your loan application is approved.

Some lenders may offer credit to existing customers who have built up a strong history of consistent loan repayments but this would always be at a lender’s discretion and highly improbable for new customers.

By applying through a broker, such as CashLady, you could have a better chance of being approved for a loan, because your application should be seen by more than one lender.

Payday Loans: responsible borrowing

Used responsibly, short term credit solutions help people experiencing cashflow issues with an opportunity to borrow money quickly and discreetly – usually via an online application process.

Because payday loans are designed to be borrowed over very short periods, the interest rate will normally be much higher than longer term personal loans. FCA regulated credit providers will make the cost of borrowing very prominent on their websites, including both the interest rate and representative APR. This is to ensure customers are made fully aware of the cost of borrowing before they apply.

Both flexible and easily accessible, modern short-term credit products are designed to allow early repayments anytime and usually without penalty.

Affordability is a key consideration for any regulated short term credit provider. You must be able to comfortably afford your scheduled repayments. As such is it not uncommon for online loan applications to require additional checks from lenders before they approve your loan application.

The difference between payday loans and instalment loans

What are the differences between payday loans and instalment loans in the UK?

The strict definition of a payday loan is: a short term borrowing that is fully repaid (including interest and any charges) in one instalment/ payment which usually takes place on your next pay day.

An instalment loan is a paid back in 2 or more instalments. This means that in a strict sense, payday loans cannot be called instalment loans.

It is common for lenders do refer to their instalment loans products as payday loans. This is usually to avoid confusion, with many borrowers associating flexible and straightforward short term finance with the term ‘payday loan’, rather than instalment loan.

The truth about payday loans

In the past, the short term loan industry received much negative press, primarily focused on the topic of high APRs and customer care.

Many direct lenders were fined by the Financial Conduct Authority (FCA) and some loan providers stopped trading.

Since 2014 the market has been regulated by the FCA and the HCSTC industry is now one of the most regulated financial service sectors in the UK.

In 2015, as part of their review process, the FCA introduced price caps on all high-cost short-term credit products. This included payday loans.

The price caps ensured that financial institutions offering payday loan/short term credit products, must meet the following criteria:

  • Interest and fees charged to borrowers cannot exceed 0.8% per day of the amount borrowed
  • Default fees must not exceed £15. Lenders can continue to charge interest after default but this must not be higher than the initial rate
  • Borrowers should never pay more in interest and fees than 100% of the amount borrowed.
Any payday lender should be FCA authorized

Any high cost credit provider should be FCA approved and committed to responsible lending.

Responsible lending involves carrying out strict credit and affordability checks to ensure that customers can afford the loan repayments on the amount and loan term applied for.

Over the years, the short term loan industry in the UK has evolved considerably and all FCA authorized credit providers focus on responsible lending.

Payday loans are designed to be a type of short-term credit for emergency expenses. As such, they provide a service for people who need cash fast and often have no-where else to turn.

Payday loan reviews

Today, most short term credit providers have high feedback scores on review websites, such as Smart Money People or and it is not unusual to see a lender within hundreds of reviews from satisfied borrowers.

CashLady reviews

Do payday lenders charge fees?

Most lenders do not charge for making loan applications
  • Most direct payday lenders do not charge borrowers any fees or charges to make an application for a payday loan.
  • Interest is payable on the amount that you borrow. This is usually included in your monthly payments that you make to pay off your loan.

Lenders normally to use Continuous Payment Authority (CPA) to take your repayments. This means that you do not need to worry about forgetting to make the payments, as with CPA they will be taken automatically. Your repayment date/s and amount/s should be shown on your contract.

Some lenders charge a default fee if you do not make a repayment or if you do not have enough in your account for the lender to take the money. However, as per the FCA rules, default fees must not exceed £15.

What to look out for when choosing a payday loan provider?

Authorised and regulated by the FCA

You can check a particular lender’s status by searching the FCA register

Positive reviews

Check out their customer reviews and see what other people have to say. This will give you some valuable insights into the way the company operates.

Physical address

If an online lender doesn’t provide a physical address, you should be cautious.

Payday lenders uk should provide a physical address on their websites

Privacy policy

If an online loan provider doesn’t have a clear Privacy Policy, it could be a warning signal about their attitude to data protection.

Industry bodies

Look for accreditation and membership of industry bodies such as the CFA (consumer finance association) to give you some reassurance.

Payday loan APR

It is a legal requirement for lenders to advertise their Annual Percentage Rate (APR).

APR is a useful tool for comparing the cost of borrowing with different lenders. It shows the amount of interest on a loan on an annual basis.

However, most payday loans are much shorter than a year. This is one of the reasons why the APR looks a lot higher with payday lenders, than a typical bank loan APR.

If you want to find out more about APR, you can read our APR guide.

How do I repay my payday loan?

You will usually repay your loan via either Direct Debit or Continuous Payment Authority.

Repayment dates will be set when you are approved for your loan. Your first one should usually be after your next payday.

Your loan repayments should include total amount payable (including interest and original loan amount). These payments can be divided either equally or unequally, depending on the loan provider.

You should be provided with a full illustration of your loan agreement, including a schedule for all future repayments, before you commit to any credit agreement.

Will taking out a payday loan affect my credit score?

As a form of personal finance, payday loans can help borrowers prove that they can sensibly manage their finances and credit commitments.

If you have taken out a personal loan and repaid it on time, anyone looking at your credit record in the future should have a more favourable view of your creditworthiness.

However, if you miss repayments, this could negatively affect your credit rating.

Before taking out any loan, it is important to ensure that you can afford the repayments and that you repay your loan on time.

Will a payday loan affect my history?

Payday Loans – Summary

Hopefully you have a better understanding of Payday loans and the difference between similar financial products, such as instalment loans.

Used responsibly, Payday lending can provide customers with immediate access to credit which they may not be able to obtain from anywhere else. FCA price caps and strong legislation mean that the industry is now much more focused on the customer experience – something we believe can only ever be a good thing.

Price caps ensure that borrowing can never reach unmanageable levels and affordability checks should mean that nobody is given credit they cannot pay back.

Payday Loan Charges

Loan Amount (£):  

I have read and accept CashLady's
  Privacy Policy and Website Terms
I wish to opt in to SMS, telephone and email marketing.
Representative 1272% APR
Representative Example
Amount borrowed: £250 for 3 months
Number of repayments: 3
Interest rate p/a: 292% (fixed)
Each repayment amount: £137.21
Total amount repayable: £411.63
Secured By Trustico
Payday Loan Information
What is a payday loan?
Payday loan APR and an interest rate
How do Payday Loans work?
Payday loan direct lender comparison
Best payday loan company UK
Cheapest payday loans
Guaranteed payday loans
How payday loan affects your credit history
Payday loans for self-employed

Connect with us on Social Media

Customer Satisfaction and Reviews

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

Short Term Loans
CashLady is rated 4.46 stars by and Smart Money People based on 1321 merchant reviews