When comparing payday loans, it’s important that you find not only the cheapest interest rates, but a lender who can offer what you need in terms of loan amount, speed of approval and flexibility around repayments. With so many lenders out there and lots of considerations to factor into your application, it pays to do your research and take your time with it. Taking on a loan is a big financial commitment and you need to be sure you have everything you need in place before you apply.
Sunny can help with our detailed guides on each of the major lenders out there, but we’ve also created this guide on how to compare payday loans to find the right one for you and your needs.
Compare payday loans
Here, we’ve compiled the offerings of some of the major high cost, short-term lenders out there, offering everything from payday loans to short-term loan options to longer or guarantor loans, all intended for emergency situations. The easy to follow table should give you all the information you need.
|Lender||Type of loan||Amount available to borrow||Repayment period||Any fees?||Time to receive loan||Soft search?|
|Sunny||Short-term loan||£100 – £2,500||6 – 14 months||No||15 mins||Yes**|
|Quick Quid||Payday and short-term loans||£100 – £1,000 (new customers)||1-3 months||£15 late payment fee||15 mins||No|
|Ferratum||Short term loan||£50 – £1,000||1 – 4 months||£15 failed payment fee||Up to 2 hours||No|
|Peachy||Short-term loan||£100 – £1,000||1 – 12 months||£15 late payment fee||15 mins||No|
|Payday Pixie||Payday loan||£100 – £2,000||7 – 90 days||£15 late payment fee||15 mins||No|
|Mr Lender||Short-term loan||£200 – £500 (new customers)||3 – 6 months||No||1 hour||No|
|Lending Stream||Short-term loan||£50 – £800 (new customers)||2 – 6 months||£15 late payment fee||90 seconds||No|
|MYJAR||Short-term loan||£100 – £3,600||3 – 12 months||No||20 mins||No|
|MYJAR Plus||Personal loan||£400 – £7,200||Up to 24 months||No||20 mins||No|
|Savvy||Short-term loan||£300 – £3,000||12 – 24 months||No||15 mins||No|
|Drafty||Line of credit||£50 – £3,000||Ongoing||No||90 seconds||No|
|SafetyNet Credit||Line of credit||Up to £500||Ongoing||No||Instant||No|
|Satsuma||Short-term loan||Up to £1,000||3 – 12 months||No||Within an hour||No|
|118 118 Money||Personal loans||£1,000 – £5,000||1 – 2 years||No||Will only receive after a phone call||Yes|
|OnStride (formerly Pounds to Pocket)||Short-term and personal loans||£150 – £5,000||6 months to 3 years||£15 late payment fee||10 mins||No|
|cashasap.co.uk||Payday loan||£100 – £300||Up to 35 days||£10 default fee||15 mins||No|
|cashasap.co.uk||Multi Month loan||£100 – £400 (new customers) Up to £700 returning customers||Up to three months||£10 default fee||15 mins|
|Amigo||Guarantor loans||£500 – £10,000||12 – 60 months||No||Within 48 hours||No|
Information correct as of April 2019
What to consider when comparing payday loans
Here are a few things to look for when it comes to finding a lender that works for you.
Do they offer the right product for you?
Not all so-called payday lenders offer payday loans, in fact, many now offer short-term loans that can be paid in instalments instead of stretching people and requiring them to find all the cash in a short period of time. Here are the types of loans you could consider:
- Payday loans – Typically higher interest and require payment within a month, with smaller borrowing amounts.
- Short-term loans – Slightly higher borrowing amounts and a longer repayment period, usually have instalment periods from a couple of months to just over a year.
- Line of credit – This allows you access to a certain amount of money that you can request funds from when needed and pay back the same month.
- Guarantor loans – If you have bad credit, you can put forward a guarantor who promises to pay back your loan if you find that you are unable to.
- Personal loan – Typically larger amounts, paid over a number of years, these loans are generally for home improvements or to fund bigger purchases such as a new car.
Is the lender FCA authorised?
Check this before going ahead. It is important to ensure the lender has been authorised to operate by the financial services regulator. Authorisation by the regulator means that a lender meets certain standards of operation, and also ensures that you will be protected should any issues arise later in your borrowing journey. You can search for any lenders you’re considering here.
Can you borrow the amount you need?
A lender that only offers up to £500 isn’t going to be of help if you need the money for an expensive car repair of £800, as you’d need to find the remainder by potentially borrowing again. Look for lenders that offer the whole amount you need, but avoid the temptation to borrow more than you need for the matter at hand.
Do they charge fees?
While this need not be a deal breaker, it’s important to be aware whether the lender you’ve chosen charges any fees on top of the interest payable on the loan. Most who do charge fees charge a £15 late payment fee, which, while you hope you’ll never be in a situation where you have to pay it, is important to know about, and find a lender who won’t charge you this fee if possible.
Is it easy to apply and track your payments?
It’s important you feel comfortable using your chosen lender’s service, and are able to find the information you need easily when you need it. A complicated website with a number of hurdles to overcome just to get into your online account, or having to call a lender’s customer service team just to check your balance isn’t ideal. Look into this before you get started.
Can they tell you if you’ll be approved before you apply?
Very few lenders offer the ability to tell you if you’re likely to be approved before you submit your application. However, this is something we offer here at Sunny. We do this by carrying out a soft search of your credit report**, which enables you to find out if you are likely to be accepted with no impact on your credit rating. If you’re likely to be approved, then you can decide if you want to go ahead and submit your application, at which point we’ll carry out a hard credit check, which does impact your credit rating. Many lenders can only tell you if you’ve been approved or not once you’ve submitted your application and they’ve carried out their own hard credit check, which is noted on your credit report and means that even if you are not accepted for a loan, your credit score will be impacted.
Are the repayments manageable?
It’s very important that you can factor your loan repayments into your monthly budget, alongside your regular expenses. You should be able to comfortably pay back what you’ve borrowed without having to cut back on your essential expenses, and ideally have a little left over as well. If you’re already stretched to your limit and a loan is going to impact your ability to pay your bills or pay for necessary shopping, then it’s important you speak to a free and impartial financial advice service before making any decisions about borrowing money. The Money Advice Service or StepChange are good examples of the type of organisations that will be able to help you.
Is there a payday loan comparison site?
Yes, much like when you shop around for car insurance or cover for your home, there are websites dedicated to making comparing payday loans easier. All the Lenders is perhaps the best-known one, allowing you to input what you want to borrow and for how long and throwing up a range of lenders that match. Money.co.uk is another place to turn for an unbiased comparison of the lenders you may be considering.
When comparing any type of loan, think about these points before you go ahead with an application:
- Why do you need the loan? Payday loans should only be considered in the event of a financial emergency and if you have no other option when it comes to getting the money you need. These loans should not be used for unnecessary expenses
- Am I eligible? While often your eligibility to borrow from a lender will be down to how they view your credit history, you can make sure you meet their basic criteria for things like age, UK residency and income before you apply. Remember, with Sunny, you can check your eligibility and find out how likely you are to be approved before you submit your application.
- Have you checked your credit rating? Once you’ve chosen the right lender for you, you’ll need to make sure you’re right for them, too, by checking your credit report is in the best shape possible. A default or CCJ record means that it’s unlikely you’ll be approved for a loan unless the lender specifically says they’ll approve people in your situation. You may need to improve your credit history before you can borrow money.
- Is there another option? While a payday loan may seem like a good idea if you need cash fast, it’s important you look into every option before going ahead. Could you use savings? Sell something to fund your expense? Is there a relative or close friend that you could borrow from? Look into every viable option that might be available to you before applying to borrow money.
Think a short-term loan may be the best choice for you?
If you’ve considered traditional payday loans but think the ability to repay in instalments over time makes a short-term loan look like the better option for you, you can apply with Sunny below. Alternatively, take a look at our short-term loans guide if you want to learn more.
Comments from Sunny customers
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***Soft search is currently only available to new customers. Our eligibility check will assess whether you meet our lending criteria. Even if you are eligible, we may still require proof of ID and/or proof of income before we approve the loan.