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Payday loans

What are payday loans?

While payday loans originated as short-term loans that matured when you received your wage, today's definition of payday loans is simply any short-term, unsecured loan. These loans are best used to cover temporary cash setbacks. For example, if your car unexpectedly breaks down, you may find yourself struggling to pay the repair bill. In this case, taking out a payday loan is one way to cover your emergency expenses.

What's the difference to other loans?

The key difference from other types of loans is that payday loans tend to last a short period, only about one or two weeks, to be repaid upon you getting your next wage. Due to their shorter length, there will be a higher APR and a relatively small credit limit.

When do I use payday loans?

The proper time to use such a loan could be in examples like the car repair bill above, but really can apply to any situation where you know you'll have the money you need in your next wage, but you need it straight away. It wouldn't be advisable to take out a payday loan over and over again to cover a recurring charge, nor would it be a good plan to use it on something unnecessary. Only use a payday loan for a sudden necessity or emergency.

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How is Sunny better than a payday loan?

There are other short-term loan options that provide further benefits above a standard payday loan. Sunny offers such a great range of instalment loan sizes, from £100 to £2,500 - over a variety of terms - that there is sure to be one that is exactly right for your situation.

Sunny also offers a completely transparent pricing structure with a flexible overpayment plan that allows you to pay more each month so that you repay early and save money on interest. We have no fees whatsoever, hidden or otherwise - even if you don't pay on time.

If customers experience difficulty making their repayments, we urge them to contact us so we can work with them.

How do Sunny loans work?

Honesty, transparency, and fairness are deeply engrained in Sunny's core business, which is why we've designed our loans to be as straightforward and flexible as possible - putting the borrower in control. Below are some of the most important points regarding Sunny loans. We encourage you to compare our loans to other short-term lenders.

  • Our loans have no fees, guaranteed.
  • We give you 5 days to change your mind and repay the principal with no fees and no interest. You can do this once per month, no questions asked.
  • Applying is via our easy to follow online application and delivers a decision in minutes.
  • If approved, the cash you borrow is sent to your bank within 15 minutes.
  • Money tips - videos, guidance, quizzes and tools to help improve your money management skills.
  • Sunny's flexible overpayment plan allows you to pay more each month if you wish, meaning you repay earlier and save money in interest.

Get your finances sorted

With so many lenders and loan types to choose from, it's important to efficiently research your options. We encourage you to view our lending guide articles to help you in the decision-making process, and use Money tips to clear the clutter and get your finances sorted beyond just your next payday.