Payday loans

What are payday loans?
What’s the difference between a payday loan and a short-term loan?
Can you get a payday loan with bad credit?

When thinking about applying for a loan, it’s important to weigh up all your options and make the best decision for you, based on your financial circumstances.
Our guide shares some key information about payday loans, as well as discussing short-term loans as an alternative.

What is a payday loan?

A payday loan is an amount of money borrowed from a lender that must usually be repaid within a month. Payday loans could be useful in the event of a financial emergency if you don’t have the immediate funds or savings to cover the cost.

Due to their short borrowing window, payday loans are likely to come with higher interest rates.

Can I get a payday loan through Cashflex?

Cashflex is a credit broker, not a lender. None of the lenders on our panel offer payday loans, although they do provide short-term, personal loans from £100 to £10,000.

What’s the difference between a payday loan and a short-term loan?

Unlike payday loans, short-term loans aren’t required to be repaid in full within four weeks. Short-term loans come with a range of repayment terms that could allow you to spread the overall cost of borrowing.

You can use Cashflex to search for a loan with repayment terms from 3 to 60 months, depending on the amount of money you apply to borrow.

Is it still possible to get a payday loan?

Yes, payday loans are still available from certain lenders, although they may not be as common as they once were. This is due to changes in industry standards. Guidelines brought in by the Financial Conduct Authority (FCA) in 2015 aim to make lending fairer for borrowers across the market by setting a price cap on high-cost short-term credit and promoting stronger guidance on affordability checks.

How do I borrow money fast? Is a payday loan a suitable option?

If your need for money is urgent - for example, you need cash to cover an unexpected bill - you might be wondering whether a payday loan is the fastest way to get funds.

In these situations, it can be easy to apply for the first loan you see; however, it’s really important to take a step back and carefully go through your options one by one before making a decision.

It’s worth pointing out that a loan application cannot be fast-tracked or hurried. There are things you can do to ensure the process is as smooth as possible, such as filling out the application to the best of your knowledge, and making sure you have any correct, up-to-date documents the lender might require.

Some of the lenders on the Cashflex panel are able to send your money on the same day your application is approved. Please note that the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.

Could I get a bad credit payday loan?

While the lenders on our panel do not offer payday loans, several of them do specialise in short-term loans for those with bad credit and are willing to consider applications from people with a range of credit scores, from poor to excellent.

Can I get a payday loan with no credit check?

It’s not possible to get any type of loan without an affordability check.
The FCA requires all responsible lenders to complete affordability checks as part of the loan application process, and this could include a hard credit search or Open Banking.

Open Banking is a safe and secure procedure that allows you to share your financial data with an authorised third-party, such as a lender. This insight enables lenders to view your financial habits and current situation in more detail, which will help them decide whether to lend you money.

You should be wary of any company or individual advertising loans with no affordability check, as they are highly likely to be operating outside of FCA guidelines.

You can check to see whether a company or individual is authorised and regulated by checking the FCA register.

Is Cashflex authorised and regulated?

Yes. Cashflex, and all the lenders we work with, are authorised and regulated by the FCA.
You can find Cashflex’s company information on the FCA register here.

Who can search for a loan with Cashflex?

You’re welcome to use Cashflex to help with your loan search if you:

• Are over the age of 18;
• Are a UK resident;
• Have a UK bank account and valid debit card; and
• Have a regular source of income paid into your bank account.

Cashflex as your payday loan alternative

• The trusted lenders on our panel offer short-term loans from £100 to £10,000, with a range of repayment terms between 3 and 60 months.
• Our service is free to use.
• Check your eligibility before you apply with our FastCheck tool.*
• No-obligation quotes.
• One, straightforward online form, which should take no longer than 5 minutes to complete.

*Checking your eligibility will not impact your credit score. If you’re matched with a loan and choose to make a full application with the lender, you will be required to undergo a hard credit search with that company. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time could damage your credit score.

I can no longer afford my repayments; what can I do?

If you’ve taken out a loan that you’re no longer able to afford, you should contact your lender as soon as you can.
Although this situation can feel scary, you should try not to panic. Your lender will be able to discuss any options that may be available to help ease the pressure.

If you’re in need of free money and debt management advice…

Confidential and impartial money and debt advice can be found through charities and organisations, such as StepChange, MoneyHelper, Citizens Advice, and National Debtline.