Payday Loans

Why choose Sunny for payday loans:

• Soft credit check only, won’t affect your score
• No fees from Sunny
• Compare offers before you commit
• 15-minute funding if approved

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

Sunny (Upward Finance Limited) is an Appointed Representative of Flux Funding Limited, which is authorised and regulated by the Financial Conduct Authority. We are a credit broker, not a lender.

What Are Payday Loans Today?

Payday loans used to mean borrowing a small amount until your next payday, typically due back in 30 days with high interest. That model caused serious problems for many borrowers who couldn’t repay in full, leading to rollovers and spiralling debt.

The lending landscape changed dramatically in 2015 when the FCA introduced strict regulations, including interest rate caps and affordability checks. Traditional payday lenders either adapted or left the market entirely.

Today, when you search for payday loans, you’re more likely to find flexible short-term loan alternatives. These offer the same quick access to cash but with manageable monthly repayments instead of a single lump sum due on payday.

We specialise in connecting customers with these modern payday alternatives. You borrow what you need, repay over a timeline that works for your budget, and avoid the debt trap of traditional payday loans.

Why We Don’t Offer Traditional Payday Loans

We made a deliberate choice not to offer old-style 30-day payday loans. Here’s why:

Single repayment creates pressure. Repaying your entire loan plus interest in one go can devastate your budget. If you borrowed £500, you might owe £600 or more on your next payday. That’s a massive chunk of your wages gone immediately.

Rollover cycles trapped borrowers. When people couldn’t afford the full repayment, they’d roll over the loan, paying more fees and interest. This cycle kept people in debt for months or years.

Monthly repayments are manageable. Spreading your repayment over 3, 6, or 12 months means smaller, predictable monthly payments. You can budget around them without sacrificing essentials.

You have control. Choose your repayment term based on what you can afford. Need lower monthly payments? Extend the term. Want to clear the debt quickly? Choose a shorter term and save on interest.

Our bad credit payday loans offer the same accessibility as traditional payday loans but with the flexibility that helps you succeed, not struggle.

How Payday Loan Alternatives Work

Getting a payday loan alternative through Sunny takes minutes, not hours. Here’s the complete process:

Step 1: Tell us what you need

Complete our simple online form. We’ll ask how much you want to borrow (£100 to £2,500) and your preferred repayment term (3 to 36 months). You’ll also provide basic personal and financial information.

This takes about 2 minutes. You can apply 24/7, including weekends and bank holidays.

Step 2: We search our network

We’re a broker, which means we search multiple FCA-authorised lenders on your behalf. Our lender partners perform a soft credit check to assess your eligibility. This won’t affect your credit score, only you can see it on your credit file.

Within minutes, we’ll show you which lenders are likely to approve you and what terms they’re offering.

Step 3: Compare your options

You’ll see your matched lenders, loan amounts, repayment terms, monthly payments, and total costs. Take your time comparing. There’s no obligation to accept any offer.

If you need a quick loan decision but want to think about your options, you can save your quotes and return later.

Step 4: Accept an offer

When you’ve chosen your preferred lender, click through to complete your application directly with them. They’ll perform a full credit check (this will appear on your credit file) and verify your information.

Most approvals happen within minutes. Once approved, funds typically reach your bank account within 15 minutes, though some banks may take longer.

Check your eligibility now

• Instant decision on eligibility
• Won’t affect your credit score to check
• No fees from Sunny, ever
• Same-day funding available

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

Payday Loans vs. Flexible Alternatives: The Key Differences

Understanding the difference between traditional payday loans and flexible alternatives helps you make an informed choice:

Repayment structure

Traditional payday loans require a single lump sum repayment on your next payday, usually 30 days or less. Flexible alternatives let you spread repayments over 3 to 36 months with fixed monthly instalments.

Example: Borrowing £400 with a traditional payday loan might mean repaying £480 in 30 days. With a flexible alternative, you could repay £80 per month for 6 months (£480 total) or adjust the term to suit your budget.

Affordability

Payday loans were notorious for being unaffordable. The full repayment could consume 30-50% of your monthly income. Monthly instalments with flexible alternatives typically represent 10-15% of your income, leaving room for other expenses.

Debt cycle risk

Traditional payday loans often led to rollovers when borrowers couldn’t repay in full. Each rollover added more fees and interest. Flexible alternatives with monthly payments are designed to be sustainable, reducing the risk of debt spirals.

Regulation and caps

Both types of loans now fall under FCA regulation with interest rate caps (0.8% daily interest maximum, £15 default fee cap). However, flexible alternatives spread interest over longer periods, often resulting in lower total costs for borrowers who need time to repay.

Early repayment

With our partner lenders, you can repay early without penalties. Pay off your loan before the term ends and save on interest. This flexibility wasn’t always available with traditional payday loans.

If you need funds quickly but want to avoid traditional payday loan risks, explore our emergency loans with flexible terms.

How Much Do Payday Loan Alternatives Cost?

Cost transparency matters. Here’s what you need to know about pricing:

Representative 89% APR

APR stands for Annual Percentage Rate. It shows the total cost of borrowing over a year, including interest and any fees. Our representative APR is 89%, though the rate you’re offered may be higher or lower depending on your circumstances.

Representative example

Borrowing £1,000 over 18 months at 89% APR (fixed) means 18 monthly payments of £102.42. Total repayable: £1,843.60. Total interest: £843.60.

Short-term payday alternative example

Borrowing £500 over 6 months at 89% APR means 6 monthly payments of approximately £98. Total repayable: approximately £588. Total interest: approximately £88.

For a typical payday-style need (smaller amount, shorter term), here’s a realistic scenario:

Sarah needs £400 until payday but wants manageable repayments. She borrows £400 over 3 months. Monthly payment: approximately £154. Total repayable: approximately £462. Total interest: approximately £62.

This is substantially more affordable than a traditional 30-day payday loan that might charge £80-120 in fees and interest for the same amount.

APR ranges

Lenders in our network offer rates from 9.3% to 1,721% APR depending on your personal circumstances, loan amount, and repayment term. Your specific rate depends on:

• Your credit history and score
• Your income and employment stability
• Your existing financial commitments
• The loan amount and term you choose

No fees from Sunny

We never charge you application fees, service fees, or any other charges. Our service is completely free. Lenders pay us a commission when you accept a loan, but this doesn’t increase your costs.

Compare this to some brokers who charge £50-100 in fees. With Sunny, every penny you borrow goes into your account.

Who Can Get Payday Loan Alternatives?

Our partner lenders consider applications from a wide range of customers, including those with less-than-perfect credit. Here’s what you need to qualify:

Basic eligibility requirements

• At least 18 years old
• UK resident with 3 years of address history
• Minimum £500 monthly net income
• UK bank account and debit card
• Employed with stable income
• Not currently bankrupt or insolvent

Bad credit considered

Past credit issues don’t automatically disqualify you. Our partner lenders specialise in bad credit loans and look at your current situation, not just your credit history.

They assess:

• Your current income and employment
• Your regular expenses and commitments
• Your ability to afford monthly repayments
• Your recent financial behaviour

CCJs, defaults, and missed payments are considered, but they won’t necessarily stop you from getting approved. Lenders want to see that you can afford repayments now, regardless of past difficulties.

Affordability is key

All FCA-authorised lenders must conduct affordability checks. This protects you from borrowing more than you can realistically repay. Lenders review your income, expenses, and existing debts to ensure monthly repayments fit comfortably within your budget.

This is genuinely helpful. It prevents you from taking on unmanageable debt and reduces the risk of late payments, defaults, and further credit damage.

Employment types accepted

You don’t need a traditional full-time job. Lenders accept:

• Full-time and part-time employment
• Self-employment with regular income
• Benefits and pensions (some lenders)
• Temporary or contract work

The key is demonstrating regular, sufficient income to cover your repayments.

Why Choose Sunny for Payday Loans?

We’ve been helping people find suitable loans since 2022. Our approach differs from traditional payday lenders and many competitors:

Over 1,000,000 customers helped

We’ve successfully matched more than a million people with suitable lenders. That’s a million individuals who found financial help when they needed it, with flexible terms they could manage.

4.5 out of 5 stars on Trustpilot

Rated “Excellent” by 7,385 customers who’ve used our service. Real people, real reviews. Our customers appreciate our transparency, speed, and the fact that we never charge fees.

Processing over 7,500 quotes daily

Thousands of people use Sunny every day to find loan options. We’ve built a service that works, and our daily volume proves it.

FCA-authorised and regulated

We’re authorised by the Financial Conduct Authority (FRN 806333), the UK’s financial watchdog. This means we follow strict rules designed to protect you.

All partner lenders FCA-authorised

Every lender in our network meets strict FCA standards for fair lending, including interest rate caps, responsible lending practices, and clear terms.

Never charge fees

Our service is completely free. We never charge customers anything, ever. No application fees, no service charges, no hidden costs. Lenders pay us when you accept a loan, but this doesn’t affect your costs.

Broker benefits

As a broker, we search multiple lenders in one application. You get access to more options without applying to each lender separately. This saves time and protects your credit score (our initial soft search is invisible to other lenders).

Transparency about what we are

We’re upfront about being a broker. We don’t lend money ourselves. We connect you with trusted lenders and help you compare options. This transparency is central to how we operate.

When Payday Loan Alternatives Make Sense

Flexible payday alternatives work well for specific situations. Here’s when they’re the right choice:

Bridging to payday with breathing room

You need money before payday but can’t afford to repay everything in one go. Monthly instalments let you bridge the gap without devastating your next paycheque.

Example: Your car needs £600 in repairs to get to work. You can’t wait until payday, but you also can’t lose £700 from your next wage packet. A 6-month loan means £110 monthly payments that fit your budget.

Unexpected expenses you can’t cover immediately

Emergency costs that exceed your savings but aren’t large enough for a traditional personal loan. Our small loans from £100 cover these gaps.

Boiler repairs, broken appliances, emergency vet bills, school costs, or urgent travel needs. These can’t wait, but you need time to repay comfortably.

Avoiding overdraft fees

Overdraft charges can exceed 40% APR and come with daily fees. A short-term loan with a fixed repayment plan might actually cost less and give you more control.

Building or rebuilding credit

Successfully repaying a short-term loan on time can help improve your credit score. Monthly payments show lenders you can manage credit responsibly. Just ensure you can definitely afford the repayments.

Time-sensitive opportunities

Sometimes opportunities require immediate action. A limited-time sale, a travel deal, or a work expense you need to cover upfront. Quick access to funds lets you act without missing out.

When Borrowing Might Not Be Right

We care about your financial wellbeing. Borrowing isn’t always the answer, and we’ll be honest about that.

If you’re already struggling with debt

Taking on new borrowing when you’re having trouble with existing debts can make things worse. Free debt advice organisations can help you explore alternatives:

• StepChange offers free debt advice and can negotiate with creditors on your behalf
• Citizens Advice provides free, impartial guidance on managing debt
• National Debtline offers free debt advice over the phone

These services are confidential, free, and genuinely helpful. They can often find solutions that don’t involve more borrowing.

If you can’t afford the repayments

Only borrow what you can comfortably afford to repay. Use our loan calculator to see monthly payment amounts. If those payments would strain your budget or mean sacrificing essentials, borrowing isn’t the right choice.

If you’re borrowing to gamble

Never borrow money for gambling. If you’re concerned about gambling, organisations like GamCare offer free support.

If there are other options

Before borrowing, consider alternatives. Can you negotiate a payment plan with creditors? Could you borrow from family or friends interest-free? Do you have items you could sell? These options avoid interest and debt altogether.

How to Use Payday Loan Alternatives Responsibly

Responsible borrowing protects your financial health. Follow these guidelines:

Borrow only what you need

It’s tempting to borrow more “just in case,” but every pound borrowed incurs interest. Borrow the minimum amount that covers your need. If you need £400, don’t borrow £600.

Choose the shortest term you can afford

Longer terms mean lower monthly payments but higher total interest. If you can afford £150 per month instead of £100, choose the shorter term and save money overall.

Balance affordability with total cost. Don’t choose such a short term that repayments strain your budget, but don’t extend unnecessarily either.

Budget for repayments

Before accepting a loan, ensure you can afford monthly payments alongside your other expenses. Account for rent, bills, food, transport, and other essentials. Repayments should fit comfortably, not squeeze your budget.

Set up a direct debit

Automatic payments ensure you never miss a due date. Missing payments leads to late fees, credit damage, and increased costs. Direct debits remove the risk of forgetting.

Repay early if possible

Our partner lenders don’t charge early repayment penalties. If your financial situation improves, pay off your loan early and save on interest. Even partial early repayments reduce your total cost.

Contact your lender if you struggle

If you’re having trouble making repayments, contact your lender immediately. They may offer payment holidays, reduced payments, or restructuring options. Ignoring the problem makes it worse.

Lenders would rather work with you than pursue defaults. They’re legally required to treat customers fairly and offer support when needed.

Alternatives to Payday Loans Worth Considering

Payday loan alternatives aren’t the only option. Depending on your situation, these might work better:

Credit union loans

Credit unions offer loans to members at lower interest rates than mainstream lenders. They often accept applications from people with poor credit. You’ll need to join the credit union first, which may take a few weeks.

Employer advances

Some employers offer wage advances or interest-free loans to employees. Check with your HR department. This option costs nothing in interest but may affect your next pay packet.

Government support

Budgeting Loans or Budgeting Advances are available to people on certain benefits. These are interest-free but have strict eligibility criteria.

0% credit cards

If you have decent credit, a 0% purchase credit card lets you borrow interest-free for an introductory period (typically 3-12 months). You’ll need to repay before the 0% period ends.

Longer-term personal loans

For larger amounts (£3,000+) or longer repayment periods (3-5 years), personal loans from banks or online lenders offer lower APRs. These require better credit scores but cost less overall.

We help you find the right match for your circumstances. If a 3 month loan or 12 month loan better suits your repayment capacity, we’ll show you those options.

Understanding Your Credit Score and Payday Loans

Your credit score affects your eligibility and the rates you’re offered. Here’s what you need to know:

What lenders see

When you apply, lenders review your credit report from agencies like Experian, Equifax, or TransUnion. They see your credit history, including:

• Previous loans and credit cards
• Payment history (on-time, late, or missed)
• Defaults, CCJs, and other negative markers
• Current credit accounts and balances
• Hard credit searches from recent applications

Soft search vs. hard search

When you apply through Sunny, lenders perform a soft search initially. This checks your credit but doesn’t leave a visible mark. Only you can see it on your credit file, and it doesn’t affect your score.

If you accept a loan offer, the lender performs a hard search. This does appear on your credit file and may temporarily lower your score by a few points. Multiple hard searches in a short period can significantly impact your score.

Our soft search first approach protects your credit score whilst you shop around.

How payday loans affect your credit

Taking out a payday loan alternative appears on your credit report. Repaying on time can help build positive credit history. Missing payments or defaulting damages your credit significantly.

Short-term loans used to be viewed negatively by mortgage lenders and other creditors. Perceptions have improved as responsible short-term lending has become mainstream, but heavy reliance on short-term credit can still raise concerns.

Improving your credit score

If you want better loan terms in future, work on your credit score:

• Register on the electoral roll at your current address
• Pay all bills and credit commitments on time
• Keep credit card balances below 30% of your limit
• Fix any errors on your credit report
• Avoid making multiple loan applications in short periods

Building good credit takes time, but it opens access to cheaper borrowing in future.

Related Loan Options

Not quite what you’re looking for? Explore these alternative loan options that might better suit your needs:

Bad Credit Payday Loans

If credit history is a concern, bad credit payday loan alternatives are designed specifically for people with poor credit scores. Lenders consider your current situation and ability to afford repayments, not just past credit issues. You’ll find the same flexible repayment terms (3 to 36 months) with lenders who understand that past financial difficulties don’t define your future. Explore bad credit payday loans.

Quick Loans

Need the same speed as traditional payday loans but want flexible terms? Quick loans offer instant eligibility decisions and rapid funding, typically within 15 minutes of approval. You’ll get the same fast access to cash with the benefit of choosing repayment terms from 3 to 36 months. Perfect when time matters but you want manageable monthly payments. Compare quick loans.

3 Month Loans

Prefer a short repayment period similar to traditional payday loans but with manageable monthly instalments? 3 month loans give you 90 days to repay instead of 30, spreading the cost across three payments. This short-term commitment means you’ll clear the debt quickly without the pressure of a single lump sum repayment. Lower total interest than longer terms, with monthly payments that fit most budgets. Learn about 3 month loans.

Emergency Loans

When unexpected costs strike, emergency loans provide the same rapid access as payday loans with flexible repayment options. Available 24/7 for genuine emergencies like car breakdowns, boiler failures, or urgent vet bills. Same-day funding with repayment terms from 3 to 36 months, so you can handle the crisis without creating a new financial problem. Get emergency funding.

Small Loans

For smaller amounts typical of traditional payday loans (£100-£500), small loans offer the exact borrowing you need without over-borrowing. Cover minor emergencies, small shortfalls, or unexpected costs with flexible repayment from 3 to 36 months. Borrowing only what you need keeps your monthly payments and total costs as low as possible. Explore small loans.

Ready to Apply for a Payday Loan Alternative?

If you need funds quickly but want the flexibility that traditional payday loans never offered, we’re here to help. We’ll search multiple FCA-authorised lenders to find you the best match for your circumstances.

Since 2022, we’ve helped over 1,000,000 customers find suitable loans with flexible repayment terms. We process over 7,500 quotes every day, and our 4.5-star Trustpilot rating (from 7,385 reviews) reflects our commitment to transparency, speed, and customer service.

Remember: we’re a broker, not a lender. We connect you with trusted lenders but never lend money ourselves. This gives you access to multiple options in one application, and we never charge you fees for our service.

See if you match now

What happens when you apply:

• Complete our simple 2-minute form
• Get an instant eligibility decision
• Compare matched lenders and their terms
• Choose the offer that works for you
• Receive funds within 15 minutes if approved

Remember:

• Soft credit check only, won’t affect your score to check eligibility
• No fees from Sunny, ever
• No obligation to accept any offer
• Same-day funding available 24/7
• Bad credit considered

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

Representative 89% APR. Representative example: Borrowing £1,000 over 18 months at 89% APR (fixed) means 18 monthly payments of £102.42. Total repayable: £1,843.60. Total interest: £843.60. The rate you’re offered may be higher or lower depending on your circumstances.

Sunny (Upward Finance Limited, Company No. 11365247) is an Appointed Representative of Flux Funding Limited (FRN 806333), which is authorised and regulated by the Financial Conduct Authority. Registered office: 7 Bell Yard, London, WC2A 2JR.

We are a credit broker, not a lender. We introduce customers to FCA-authorised lenders and do not make lending decisions. We never charge customers any fees for our service.