Is a payday loan right for you?

It’s essential to know the full details when it comes to taking out a loan so you can be sure it’s the right loan for you and your financial situation. To help you understand the facts about payday loans, we’ve put together this handy guide to explain what is meant by payday loans, why you would get one, the advantages and disadvantages, and how Sunny can help. On this page you will also find information about Direct Lender Payday Loans

What are payday loans?

Payday loans are simply a “catch-all” way to describe short-term, unsecured loans. They can also go by the names of ‘payday advance’ or ‘cash advance’ loans. Payday loan lenders can help with financial woes by bridging the gap until payday and lending what is usually a small amount, stemming from around £50 to £1,000. The amount borrowed is usually to be paid back within a month, when your wages come in. Payday loans are most often required to solve a sudden financial setback and tide you over until more money comes in. For example, if any essential home repairs arise or unexpected bills appear, a payday loan may seem like the best solution if your money cannot stretch far enough.


Payday loans are most often required to solve a sudden financial setback

Payday loans online

The process of applying for a payday loan today is usually quick and straightforward, which is part of their appeal. Applying for payday loans online online does not typically involve paperwork. You’ll just be asked for your address, bank and employment details so the lender can run through a quick credit check to see if you are eligible for a loan. A decision regarding the loan is usually received instantly and money is transferred the same day.

Getting started

To be eligible to apply for a Sunny loan, you must be at least 18 years old, a UK resident and have a UK bank account and debit card. You must also have a net income of at least £500 per month, and have a mobile phone. Get your application started by clicking here to be taken to our application form.
Unfortunately not. Each application we receive is assessed on an individual basis taking a number of factors into account. We are therefore unable to offer an indication of whether or not your application would be accepted before you submit it. Please remember, if you apply, this will leave a footprint on your credit file.
Yes. As part of our commitment to responsible lending, we carry out credit and affordability checks on all applications submitted to us. This assists with fraud prevention and also ensures we only approve applications from people who we believe will be able to repay what they borrow. You can learn more about credit checks and how we use the information provided to us by Credit Reference Agencies (CRAs) by visiting the Your data section of our website.

Why would you choose a payday loan?

Payday loans are usually required to cover emergency expenses and unexpected payments. For example, an unforeseen car repair or a boiler breakdown may be a costly but crucial job. They are generally best suited to a situation in which you need money straight away and you are sure you will have sufficient funds by payday. However, it’s advised to only take out a payday loan when completely necessary. Also, try to avoid taking them out on a regular basis, as your debt could stack up.


Payday loans are usually required to cover emergency expenses and unexpected payments

What are the advantages and disadvantages of a payday loan?

The main advantage of a payday loan is the shorter repayment period when compared to other loans, as you can repay your debt come payday and you are not tied to a long-term contract. However, because of this shorter length, even the best payday loans usually come with a higher Annual Percentage Rate (APR) and a smaller credit limit, which could cost you a lot more in the long run.

Although payday loans are easy to apply for, be wary of certain payday loans that seem too simple, like those you see referred to as ‘no credit check payday loans’. While they skip a lot of the application process of traditional loans, the checks carried out in traditional loans are intended for customers’ safety and you could be putting yourself at risk by bypassing them.


Sunny offer instalment loan sizes ranging from £100 to £2500 over a variety of terms

Does Sunny offer payday loans?

At Sunny, we don’t consider ourselves to be a payday loan company. However, we do offer other short-term loan options that provide more benefits and security than a standard payday loan. We offer instalment loan sizes ranging from £100 to £2,500, over a variety of terms. Therefore, there is likely to be one that is suitable for you and your specific financial situation.

For example, if you take out a loan with us of £250, on loan term of 6 months, your total repayable amount with 1291% APR would be £440.05, which can be paid in instalments of £73.35 a month. The amount however, can be repaid early at any time, which will save you money on interest fees.

Why choose Sunny?

At Sunny, we provide quick and secure loans with flexible repayment options, meaning you can adjust your schedule and payments on your terms. We differ from other loan companies because we have no extra fees guaranteed. This means you do not have to pay extra for administration or application fees. Most importantly, you won’t be charged a fee for late repayments. In short, we offer a completely transparent pricing structure and the one of the most flexible emergency financial solutions in the UK.

Applying for a Sunny loan is very straightforward, via our simple online application, which delivers a decision in minutes. If your loan is approved, the money you borrow will be sent to your bank in as little as 15 minutes that same day. However, we also give you 5 days to change your mind and repay the principal amount with no added fees and no interest, just to give you further peace of mind.

Honesty, transparency, and fairness are deeply ingrained in our business, which is why we’ve designed our loans to be as straightforward and flexible as possible to put borrowers in control of their finances. We aim to be a lifeline to help customers work towards a better financial future. So, if customers are still having trouble making their repayments, we urge them to contact us so we can work with them.


Honesty, transparency, and fairness are deeply ingrained in our business

As with any other purchase, it’s important to fully examine your options, in this case, each type of loan, before you apply. With so many lenders and loan types to choose from, thoroughly researching your options could help you save a lot of money in the long term. Therefore, we encourage you to compare our loans to other short-term lenders.

If you have any additional questions regarding payday loans or our flexible loan options, please visit our Frequently Asked Questions. Alternatively, you can contact us using our online live chat.

 


 

Direct Lender Payday Loans

When it comes to loans, there are a lot of confusing terms and policies out there. It’s best to be completely in the know before agreeing to anything, especially when it comes to your money. To help shed some light on payday loan direct lenders and their benefits, we’ve written a handy guide.

What are payday loan direct lenders?

Payday loan direct lenders are companies that lend to you directly without using external parties or middlemen. These loans are usually for smaller amounts of money, around £100 to £1000, and for a short-term period of up to six months. Payday loans are usually this short to help borrowers get by until their next paycheque.

What are brokers?

Brokers offer a service between the borrower and the lender. Their service helps borrowers find a loan and they usually then take a percentage of the amount as commission. Credit brokers have to be authorised and regulated by the Financial Conduct Authority and listed on the Financial Services Register. They are also obligated to give you a written notice setting out details of any fees they are expecting, to which you must have agreed in writing before anything goes ahead.

Brokers vs. payday loan direct lenders

The main advantage of using a broker instead of getting a direct loan is that you can thoroughly see a broad range of options, as a broker can get quotes from different lenders and present them to you in one go.

Although brokers can provide insightful information, your financial security may not be their top priority. Using a broker could also cost you more money and take more time.

A benefit of direct lenders is that can be easier to address any issues and answer any questions that might come up along the way. The lender can generally give you more accurate answers regarding their loans than a broker.

When would someone need a direct payday loan?

A payday loan can be helpful to cover life’s little emergencies and unforeseen expenses when you are short on cash. For example, if emergency car repairs or home maintenance need doing, a payday loan can help you until more money arrives into your account.

If you are considering a direct payday loan, the best time to apply is when you know the exact amount you want and have assessed various lenders so you know you’re getting the best deal. This is essentially doing the broker’s job and saving yourself money.

Are Sunny direct lenders?

At Sunny, our loans are direct, so if you apply to us directly, you’ll be borrowing from us. We can approve borrowers for a loan that is suitable for them and takes their circumstances into consideration. This is why the application process asks for your personal details such as name and date of birth, address, employment and bank details. We need to see whether the loan you are applying for is something you will be able to pay back without any worries.

Although Sunny is a direct lender, we don’t consider ourselves to be a payday loan company. However, we do offer other short-term loan options that provide more benefits than a standard payday loan. We offer instalment loans ranging from £100 to £2,500, over a variety of terms. In fact, we are one of the most flexible emergency financial solutions in the UK. So when repaying, you can pay more each month if you like and even repay the sum early if you wish to save money on interest.

How to apply for a Sunny loan

Applying directly for a Sunny loan is both quick and easy on our website. You can see how much you’ll pay in interest for different loan amounts using our adjustable calculator. Once you are comfortable with your desired amount and have filled out the online form, we will get back to you with a decision in minutes. The checks we carry out are quick but thorough and help us ensure you won’t struggle to repay the loan.

If your loan request is approved, the money will arrive into your bank account in as little as 15 minutes. However, if you change your mind, you can call to cancel your loan within 5 days of taking it out and repay only the principal amount with no fees or interest.

Why choose Sunny?

Sunny is different from other loan companies because we have no extra fees, guaranteed. This means late repayments, application fees or administration fees will not be charged and all you are expected to pay back is the original loan amount plus interest. Our interest is charged daily and is capped at a maximum of 0.8% per day, so you don’t have to worry about your payments getting out of control.

We believe in being honest, transparent and fair throughout the whole loan process and we aim to act as a lifeline for our borrowers. This means that if someone is having trouble making repayments, we will work with them to help them get in the clear.

Additional advice

A loan is a completely personal decision and the above guidelines are only recommendations.  Depending on your financial situation, a broker may be a better option for you. Either way it’s best to thoroughly research any policies and fine print before applying to a loan.

Ensure you are only borrowing an amount that you are comfortable with paying back and avoid taking out loans on a regular basis, unless completely necessary. Should you need further guidance, please see our Frequently Asked Questions. Alternatively, if you have any questions regarding our direct loans or interest rates, please contact us using our live chat.