Payday Loans in the United Kingdom

Payday Loans in the United Kingdom

The UK is probably ne of the most popular destinations where internationals come seeking greener pastures and greater chances at life. A random check through the streets and cities of the UK will find that there are just as many Africans as there are Europeans, Asians, Americans and Australians in the UK. So in short, the UK is a melting pot of cultures. But with this great culture comes the need for financial independence. Friends, family and workplace may only help one out of their financial dead ends once in a while but then who knows when exactly needs arise? I guess nobody.

Even with a perfect financial plan and ring fenced income, chances that needs go out of hand are rife. Maybe you travelled abroad and ended up spending on a premium souvenir or just for some reason went off your budget. Such situations can be so desperate especially when there are bills or to be sorted. I bet you, the UK is not a country where you can just approach somebody and expect them to lend you £5000, £10000 or so. They simply don’t have it or if they do, it’s so committed elsewhere. It is at this point that payday loans becomes a great saviour.

A brief about Payday Loans in the UK

Payday loans are platforms in the United Kingdom that offer quick loans. These online lenders can be of great help in case you find yourself strapped financially. The loans are easily accessible because it takes less time to get the funds once approved. Besides, one must be residing in the United Kingdom to qualify for a loan. Having a monthly Income is also a requirement.

Each lending company has its own terms and conditions just like in Croatia. The good thing is that the Financial Conduct Authority regulates them. Therefore, these lending companies have been highly rated compared to traditional bank lenders. Payday loans don’t check your credit history to approve a loan.

Let’s look at the companies where one can apply for a payday loan in the United Kingdom:

THL Direct

THL Direct offers quick short-term loans ranging from £125 to £500. You can choose to pay weekly or monthly depending on your income. Additionally, no upfront fees are required for first-timers. Interests are as minimal as 0.8%per day. They don’t impose a penalty or late loan repayment. Funds are directly deposited into your bank account once the loan is approved.

Creditstar UK

Creditstar an online lending company offering loans to individuals residing in the UK. It started sixteen years ago and has over one million registered customers. It only takes 30 minutes to get funds once approved. Also, subsequent borrowers can apply for higher loans. One must clear their previous balance to get new loans approved. Loans are automatically repaid from one registered debit card according to selected dates.

Credit checks are conducted once you give out your bank details. However, the first-time borrowers have a £600 borrowing limit. Loans can be paid in full or in installments between one to six months. With Creditstar borrowing has been simplified and made easily accessible.


Cashfloat is an online lender that offers loans from £600 to£2500. Interestingly, credit scores cannot limit one from getting a loan. Their loan duration is a bit longer compared to other lenders. No upfront fee is required but late loan repayment subjects one to penalties. Business owners can also apply for loans. Borrowing has been made cheaper here with a 0763% interest per day. Funding is done on the same day of approval.

Furthermore, you need a guarantor. Cashfloat can elevate one from the payday loan cycle by providing higher amounts of loans for people who attain fair credit scores. It also extends the repayment period by one month at zero cost.


On CashASAP platform, the maximum amount of loan can get is£750. As a first time borrower your limit is £400. These loans are to be paid on your payday within 35days. Repaying in installments is accepted for a period of months. Earlier repayment saves one on interest. You must have a mobile phone and an email address to apply for the loan.

The loans are easily accessible with no hidden cost. Funding is done within the same day of approval. In conclusion, if you feel stuck and you need quick money to fix some bills cashASAP got your back.

Lending Stream

First-time borrowers have a loan limit that ranges from £50 to £800 while returning ones can take up to £1500. The loans are approved on how previous ones were repaid. Lending stream loans can be repaid from 6 to 12 months with a 292% interest rate p.a. An income and expenditure proof is required for you to qualify for a loan. Funds are deposited within one minute once the loan is approved.

At Lending Stream, late repayment attracts a penalty of less than £15. Besides, You can repay your loan through Continuous Payment Authority. Where the loan is automatically deducted from one’s bank account.

Mr lender

Short-term, installments and bad credit loans are available here. Mr Lender offers loans from £200 to £1000. The loans should be repaid within six months. Installment loans are repaid according to an individual’s circumstances. Interest rates are fixed for all loans (292%p.a). Fund transfer takes less than an hour within a business day.

Moreover, a regular monthly income of at least £600 is needed. You are also required to have a good credit history for the last 3years. Apart from that, you need a UK bank account and debit card. Installment loans are paid in decreasing amounts on a scheduled date.

Ways of repaying payday loans in the UK

Each lending company has its own terms and conditions on loan repayments. For instance, short-term loans are repaid once on a scheduled date. However, big loans are repaid in weekly or monthly installments. Additionally, the loan can automatically be deducted from your bank account or you can choose to do it by yourself.

Advantages of having Payday Loans in the UK

The application process is easy and swift through the internet. Not much is required for you to qualify for a loan. In case you change your mind within 4 days, you can cancel the loan. Most platforms don’t check your credit history. Assets such as cars or homes are not needed for loan security. Moreover, the loans are good for emergencies since funds are deposited immediately. The amount of loans offered is easily managed. Lastly, the Financial Authority Conduct regulate and authorize the loans.

Disadvantages of Payday Loans in the UK

High-interest rates make them expensive. Besides, in the past, ruthless collection practices were noted. These debts are good in case of an emergency. However, you can easily be trapped in a long-term debt cycle. They can deduct an overdue loan from your bank account through the Continuous Payment Authority, without your knowledge. A reduction in your credit score may occur due to unpaid debts.

Final Thoughts

As a borrower, it is your responsibility to conduct a survey about any payday lender before applying for a loan. Never borrow beyond what you need. Make sure you are in a position to pay whatever amount you want to borrow in time.