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
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.
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.