Frequently Asked Questions

 1. What is a Payday Loan?

A payday loan is a financial product whereby a small sum of cash is offered to a borrower for a period of no more than 30-days. Such loans have been created in order to offer immediate financial assistance to those in need of a fast cash boost, which in most instances is then repaid next payday.

2. When are Payday Loans a Sensible Options?

Payday loans should be seen as nothing more than a small advance on an upcoming payday when the money is needed early to meet a specific need. By contrast, they are not to be used as a means by which to head-off serious financial problems or spiraling debt – that are only on offer to those in already comfortable financial situations.

3. Why Are the APRs So High?

An APR figure represents the Annual Percentage Rate of the loan – i.e. the amount of interest that would be paid over the course of a full year. As payday loans are repaid in no longer than a single month, the APR technically doesn’t apply. Generally speaking, a payday loan will be charged at no more than £24 for every £100 borrowed*, which equates to an actual interest rate of 24% and nothing close to the 1269.7% the APR would seem to suggest.

4. How Much Cash Can I Apply For?

Payday loans are on offer from £100 right up to £1,000.

5. How Many Payday Loans Can I Take Out at Once?

Only one – never more. Payday lenders do not allow borrowers to take out more than one loan at once in order to prevent any possible complications and to promote responsible lending. This includes trying to take out two loans from two separate lenders – you must pay back your existing loan before you will be considered for another.

6. Who Can Qualify for a Payday Loan?

As the loans themselves are small and minor, it is relatively easy to qualify. In essence, you need to be:

  • A permanent resident of the UK
  • Employed with a source of regular, guaranteed income
  • Over 18 years of age
  • In possession of an active bank account with direct transfer facility

That’s all there is to it.

7. Do I Need to Own my Own Home?

No – the loans are 100% unsecured and therefore this doesn’t come into the equation.