Payday Loans FAQs

In this section we try to answer all of the most frequently asked questions about payday lending. This section is very comprehensive however we have listed a quick link to each section at the top of the page, just click on this link and you will be taken directly to the relevant section.

Quick Payday Loans profiles and reviews the top payday lenders in the UK – we currently review over 40 UK-based Payday Lenders.

Over what period can I apply for a payday loan?

Payday Loans typically last for a period of no longer than one month however it is possible to find exceptions to this rule with some lenders offering loans over shorter or longer periods. Txt Loan is one such example – Txt Loans offers loans for a standard duration of 7 days. Wonga.com charges a flat charge of 1% per day and thus can offer loans over any conceivable period – Speed-e-Loans offer a similar service. Tooth Fairy Finance offers loans over a period of either 14 or 28 days and nothing in between.

It is possible to extend past these periods however it’s important to remember that in doing so you will likely incur further and somewhat prohibitive charges. Never borrow more than you can afford to repay – Payday Loans are a short-term solution to short term financial problems.

Can I apply for a Payday Loan if I’m bankrupt?

No, of all the payday lenders profiled on Quick Payday Loans (over 40) none accept applications from people who are currently bankrupt. Of all the lenders profiled FLM Quick Loans offers the most lenient lending criteria and accept applications from anyone other than people who have been declared bankrupt. The main caveat with FLM is that they require each applicant to provide a guarantor for their application – they are also an offline payday lender.

What criteria must I meet to qualify for a Payday Loan?

The criteria for qualifying for a payday loan are on the whole standardised across all payday lenders. An applicant must be over the age of eighteen years old, in full time employment and earning over £750 per month after tax, a permanent resident in the UK and have a designated UK bank account.

However, some lenders can set additional criteria including only accepting applications from people over the age of 21 years old – some lenders may also demand a higher monthly income value from potential borrower’s (THL for example demands that every borrower earn over a minimum threshold of £900). Some lenders will also demand that applicants post, fax or email additional identification or information. For example, Wages Today demands that applicants send two recent bank statements in order to validate their application.

We generally stave away from recommending lenders that consistently demand additional information or identification – there are so many lenders out there nowadays that can offer a nigh fully automated service.

What charges must I pay on a payday loan?

How much you are charged on a payday loan will vary significantly between lenders. The standard charge is 25% per £100 borrowed, and this charge is levied across a number of prominent and recommended lenders like Payday Express, Payday UK and Mr. Lender. However, some lenders don’t charge a flat fee but rather charge based on the duration of the loan – Speed-e-Loan and Wonga are two good examples of such services, both charge a flat fee of 1% per day.

Some lenders charges fall far outside the industry average, for example Uncle Buck charges 35% on every £100 borrowed. This is a ridiculous level to be charging customers. Never take out a payday loan that charges more than 25% on the total amount borrowed (minus any same day transfer charge).

How quickly will I receive my payday loan?

How fast your payday loan application is processed and how quickly you receive your loan varies between lenders. It depends predominantly on whether the particular lender offers a same day transfer and also on whether you have sent your application early enough in the day to qualify for this service.

Some payday lenders including Payday Express pay out at regular intervals throughout the day – providing you post your application before one of these intervals, and providing the lender processes your application quickly enough, then you will receive your cash the same working day.

What is a same day payday loan? What is same day transfer?

Same Day Payday Loans are payday loans that are paid out on the same working day on which you sent you payday loan application. Always be wary with regards to believing the hype surrounding same day transfers – while the majority of payday lenders live by their word (Wonga, Quick Quid, Speed-e-Loan, Payday UK and Payday Express are a few good examples) other lenders may take longer to process your application and thus take longer to send you your money.

Wonga.com offers a 15 minute cash transfer guarantee – this promise only applies to applications that have passed the initial approval process. Please check each review page or our compare payday loans page to find out which lenders offer same day transfer.

Please also be aware that while the majority of large banks can facilitate same day transfer payments some do not. In instances such as these it can take up to three days for a loan to reach your bank account.

Can I apply for a payday loan if I have CCJ’s?

The short answer is that the majority of payday lenders will not accept payday loan applications from people with CCJ’s. However, FLM Quick Loans will accept applications from people with CCJ’s if the applicant can provide a suitable guarantor – FLM Quick Loans are an offline lender.

Will my application go through a credit check?

It is quite likely that the payday lender you are applying to will perform a credit check against your application – we detail whether or not a particular lender performs credit check on our reviews pages. Mini Credit and Quick Quid are good examples of payday lenders that perform credit checks on applications.

Do I have to fax, post, send or e-mail any documents, identification or information?

Yes, but only in some instances – whether or not you will have to provide any additional documentation depends largely on which payday lender to which you send your application. We have outlined exactly which lenders demand more documentation from their customers on our payday loan reviews pages.

When it comes to the major payday lenders e.g. Quick Quid, Wonga, Payday Express and Payday UK, only in very rare instances will you have to send additional information to validate your application.

Are payday loans a scam?

Payday Loans have come in for a great deal of negative press as of late and this is mainly due to the extent of APR. It’s important to remember when taking out a payday loan that APR is a measurement for making yearly comparisons on loan products – using APR to measure the true cost of a payday loan is like using APR to measure the cost of a trip in a taxi, put simply it’s not an applicable measurement.

In order to get a truer indication on the cost of a payday loan it’s more important to look at charges. All payday loan companies issues charges and the standard charge is 25% for every £100 borrowed. While this may seem on the expensive side it’s relative to the duration the loan has been offered and also the cost burdened by the payday lender for providing immediate access to credit.

Do you have any information on complaints against payday lenders?

Our reviews pages give users the opportunity to voice any concerns they may have with the standard of service offered from a payday loan company. We do not delete user reviews and we take certain steps to ensure complete impartiality.

We have noticed a number of lenders coming on to Quick Payday Loans with the sole intention of posting user reviews – these are typically very easy to spot and are subsequently deleted.

What is a payday loan?A Payday Loan is a short term solution to a short term cash shortage. Payday Loans typically last for a period of one month, or until your next payday. Once this date has been reached the payday loan must be repaid in full. Payday Loans vary in value from £80 to £1,500 – payday loans are unique in the respect they can be transferred to a customer’s bank account near instantaneously.

How are payday loans different from credit cards, bank overdrafts or other forms of credit?

Payday Loans differ from traditional forms of credit like credit cards and bank overdrafts in that they are purely short-term sources of credit – a typical payday loan will last for no longer than a duration of 30 days. The average charge for a payday loan is 25% for every £100 borrowed – in some instances payday loans can work out cheaper than bank overdrafts.

How much money can I borrow? What is the maximum value of a payday loan?

The amount you can borrow varies between payday lenders. The highest value loan you can find from a payday loan company on Quick Payday Loans is £1,500 from Quick Quid. However, generally payday loan companies will not lend the total maximum amount to new borrowers – the maximum amount is usually only available to existing customers.

The average value of a payday loan is between £100 and £800. Each of our reviews pages will inform you on how much money you can borrow from a particular lender.

Will taking out a payday loan improve my ‘credit score’?

Loans Companies liaise with various third party credit reference agencies – paying back your payday loan in full and on time can have a positive impact on your credit rating.

Please also be aware that failure to repay a loan may also have a negative impact on your credit score.

Can I apply for a loan if I’m self-employed?

While the majority of our lenders do not accept applications from self-employed people, some do. A good example of a payday loans company that accepts applications from self-employed people is FLM Quick Loans.

Can I apply for more than one payday loan at a time?

No, our lenders only typically allow you to apply for one loan at a time – however, it is possible to increase the amount you borrow from a lender, Wonga.com is one such example of a Payday Loans Company which will let you increase the value of your loan to the maximum available amount after you have received the initial instalment.

Is applying for a payday loan secure?

No, not always. The majority of our lenders utilise 128 bit SSL encryption on their payday loan application pages – this means that any information you send via an application form cannot be read by any third party.

However, we have reviewed over 40 payday lenders and have noticed that some do not utilise SSL encryption on their application pages – we do not recommend using a payday lender that does not take the necessary steps to secure that data you are sending to them. Our payday loan reviews page highlight instances where a payday loan company has failed to take the necessary precautions.

What’s the difference between a payday lender and a payday broker?

A Payday Broker provides information on payday lenders and generates revenue whenever a visitor to their site happens to click on a link that leads through to an external site. Payday Loan Brokers can also make money through what’s called a ping tree system – this system sends an application form to multiple payday lenders and works on a first come first served basis e.g. the first lender to respond to the application will receive the lead.

Payday Lenders deal with customers directly, examples of payday lenders include Wonga, Payday Express and Quick Quid.

Are there any payday lenders similar to Wonga?

Wonga is leading the line at the moment in terms of service delivery and ease of use however there are a few payday loan companies out there who work on a par with Wonga – Speed-e-Loan is one such example. We encourage you to read the reviews available on Quick Payday Loans for more information on the merits of each particular lender.