Payday Loans
Compare payday loans with real interest rates
Borrow money for short-term emergencies and repay in fixed monthly instalments. You can gain access to funds by comparing the offers from multiple lenders. Apply for a payday loan only if you are sure about the repayments.
Suitable for Emergencies
Pay Within the Next Few Months
Offers from FCA Licensed Lenders
Maximum Interest 80p per day per £100
Real Interest Rate
What is a Payday Loan?
A payday loan is a high-cost short-term loan that is often borrowed as a quick fix for emergencies. These are unsecured loans. So, if you fail to repay the loan on time, your property will not be at stake. However, the interest rate may spiral and your credit score will be impacted.
As the rate of interest on such loans is high, it should only be borrowed if you have exhausted all other options of financing. Also, take out a payday loan only if you can afford all the repayments on time and in full. Therefore, make a concrete repayment plan before you consider borrowing a payday loan in the UK.
Did you know that payday loans are the most heavily-regulated area of lending in the UK? All that protection is there to make sure you get a fair deal and that you don’t get surprised with fees and charges you weren’t expecting.
Reasons to Borrow a Payday Loan
There is no restriction in the usage. You may use the funds for any emergency that comes up.
If you repay the loan on time and in full, your credit score will improve gradually.
As these are short-term loans, the cost of repayment can be spread within 12 months.
Repay the loan in fixed monthly instalments. It will help you to maintain your monthly budget.
Things to Consider Before Borrowing a Payday Loan
Although payday loans are most often associated with borrowers who have had financial difficulty in the past, people with all types of credit histories are welcome to apply for a payday loan online with us. As long as you can afford it, there are lenders out there who can lend you.
There are legal limits to how much interest can be charged on a payday loan. In addition, payday lenders can’t charge default fees of more than £15 or increase the rate of interest you pay on a payday loan if you miss the repayment date.
Many people think that taking out a payday loan will look bad on their credit file. Whilst, “Your score won’t be damaged by a payday loan, as long as you repay it in full and on time.”
Payday loans should only be used in an emergency. If you think it’s going to be too difficult, please don’t apply because it will make the chances of you being able to take out loans, credit cards, and mortgages in the future much harder.
Alternatives to Payday Loans
A payday loan is certainly not the only option if you are in a quick need of money to pay for your essentials. If you cannot repay a payday loan on time, the costs can spiral rapidly that will create financial chaos. There are a lot of other alternatives that you may take into consideration.
Reach out to your friends and family to avoid getting a payday loan. Sit down with them and draft an agreement for the repayment. Work out your budget so that you can easily pay off your loan. Discuss your situation with them and also discuss what will happen if you pay them late or fail to repay entirely.
If you have a current account, get in touch with your bank for an authorised overdraft. Remember, this can be an expensive financing option as compared to a payday loan if you go over your authorised limit. Spend within the limit assigned by your bank to avoid charges that are usually very high.
You can choose to borrow money from these small non-profit organisations that are set up by a group of people who offer financial help to their members. Generally, they offer short-term loans. The rate of interest they charge is relatively lower. If you are a member of any such group, you can take out money for your need and later on repay them.
Why Should You Apply With Us?
Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK
Credit subject to status & affordability assessment by Lenders.
LoanTube is a credit broker and not a lender.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.
Credit subject to status & affordability assessment by Lenders.
LoanTube is a credit broker and not a lender.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.
FAQs on Payday Loans
We have answered almost every question related to tenant loan that are frequently asked. If you do not find something, please contact us.
How do I know that the lenders you’ll put me in touch with are reputable? How do I know that LoanTube is reputable?
LoanTube is a customer-focused credit broker, licensed by the Financial Conduct Authority. All of our lenders are reputable, customer-oriented, and licensed by the Financial Conduct Authority. Why is that important and what difference does it make to you?
Payday loans have always had a very bad reputation. The government, the regulators, charities, and many people in the press thought that the interest rates charged on Payday Loans were too high and that there wasn’t enough help. In 2015, the regulator, the Financial Conduct Authority, laid down, new rules on companies that offer payday loans under the High-Cost Short Term Loans guidelines.
Five rules are
- only an FCA regulated lender can legally offer payday loans to members of the public
- no borrower will be charged more than 80p a day per £100 borrowed (that’s a daily interest rate of 0.8%)
- if a customer fails a payment, a lender can try to collect the payment from customer’s bank account only once without asking the borrower for permission, and that they can not charge a default fee of more than £15
- the total amount you pay back in interest and in fees can’t be more than 100% of the loan you took out.
- if you can’t meet your repayments on the loan and ask for help, your lender must point you in the right direction or to someone who can represent and advise you.
Do I need to be of a minimum age to apply for a payday loan with LoanTube?
Yes. Our lenders lend only to customers who are aged 18 or above.
Do I need to be employed?
Yes, it is preferred by the lenders. If you are unemployed, you may not be able to pass the lender’s affordability assessments. The exception is if you have other good sources of incomes like rental income and you can convince lenders that you can afford to pay the loan with those other incomes.
Can you work with someone who is bankrupt, someone who is in an Individual Voluntary Arrangement (IVA), or someone who is on a debt management arrangement?
People on IVA, Debt Management Plan and on Bankruptcy are considered as negative customers by lenders. It is a sign that you can’t really manage your finances. Due to this, we are very sure we won’t be able to find you a loan if you are on IVA or Debt Management Plan or have filed a bankruptcy in past.
How much information about my life and my finances will you need to know?
It’ll take you a couple of minutes to give us the details we need. What we’ll be asking for is for information on your current employment status, your earnings, your monthly expenditure, where you’re living and what is your residential status.
Is this a guarantor loan?
No, absolutely not.
How long will I have to wait for an answer?
It depends. If we have all the information we and our lenders need, a “yes or a no” answer from lenders who are willing to lend you and the quotes/APRs they want to offer you will be displayed on your screen on a real-time basis.
Are you licensed to lend me money?
LoanTube doesn’t lend you the money – we’re not a lender, we’re a credit broker. We connect with you the lenders (all licensed by the Financial Conduct Authority) who will consider your loan application. Applying through LoanTube means you don’t have to submit dozens of applications individually to each lender to get your loan decision.
How do you know which companies will lend me money and which ones will not?
When we become partners with a lender, one of the first things they do is to send us a list of the types of borrowers they would like to work with. You might be just the type of borrower one lender is looking for but another might not consider you. Our job is to pair you with the right lenders based on the information you give us.
Will I pay more by going through LoanTube?
Definitely not and we’d like to reassure you about that. You’ll be offered exactly the same rate if you apply through LoanTube than you would if you applied directly to the lender. We’re on the side of the borrower and we’d never enter an arrangement with a lender where it would cost you more money applying through us. It’s not fair and it would not make LoanTube competitive if we did.
How does LoanTube get paid?
When we match a borrower up with a lender and the borrower decides to take out the loan, we get payment from the lender in the form of a commission – simple.
Do you have to run a credit check?
When we’re searching around for the best deal for you, we only carry out a soft credit check. Soft credit checks have no effect at all on your credit score. Doing so helps us in knowing the right lenders for you even before we pass your details to them. So we don’t pass your details to any lender we already know won’t be able to lend you. The Financial Conduct Authority also requires anyone who offers payday loans to run credit checks – it’s one of the ways a lender can check that you can afford the repayments. The more we know and the more our lenders know about you, the more personalised and more suitable loan deal can be found for you.
What if I get an offer and change my mind?
That’s fine. You’re never under any obligation to accept an offer that you receive from LoanTube. Even if we say “yes” then you turn around and tell us “no”, there’s no charge for our service.
Representative APR Example
The rate you are offered will depend on your individual circumstances.
Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54
