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Payday Loans

  • Short term loan to be repaid by your next payday or within a few months
  • Maximum interest 80p per day per £100
  • You can pay off your loan early subjected to early repayment terms of the lender
  • All lenders in LoanTube panel are Financial Conduct Authority licensed

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

Our comparison service is free for you to use. Yes it’s free!!

Are you thinking how we make money then? – We receive a fee or commission from lenders whenever you obtain a loan through LoanTube.

3 Things you Need to Know about Payday Loans Online

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. Here are LoanTube’s 3 things you need to know about payday loans.

  • 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 LoanTube. 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 every company has their own way of coming to a decision, leading credit report agency Experian say on their website that, “Your score won’t be damaged by a payday loan, as long as you repay it in full and on time.”

There are some important things to think about before you take out a Payday loan so please do bear these in mind. Is there no other way you can get the money? Payday loans should only be used in an emergency – is this really an emergency? Could you wait until your next payday and sort the problem out then?

Payday loans may not be suitable for you if you think you will struggle to repay the loan. If you think it’s going to be too difficult, please don’t apply for one because it will make the chances of you being able to take out loans, credit cards, and mortgages in the future much harder.

A short-term instalment loan may be better as the amount you have to pay back each month is smaller, however, the amount you’ll end up paying in interest will be higher.

Loan

When should you Take Payday Loans?

  • If you need money in a hurry for an unexpected bill
  • When you need money quickly, as Payday Loan can be in your bank usually quicker than the other forms of loans**
  • With a fixed source of income, as it offers fixed rate of interest – you will know exactly how much your loan is going to cost

When should you not Take Payday Loans

  • If you do not have any emergency, refrain from using this
  • When already in debt, avoid this as its expensive than the other forms of credit
  • Do not take Payday Loan if you are not sure about the repayment. Because a failed repayment will impair your credit file

FAQs on Payday Loans

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, licenced by the Financial Conduct Authority. All of our lenders are reputable, customer-oriented, and  licenced 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.

The 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 – you don’t have to give us details of anyone who will guarantee to pay back your loan. We do not deal in Guarantor Loans.

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 won’t?

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 company 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. You don’t pay us anything to make an application for a loan. If you’re approved, you’ll pay the lender exactly what you’d have paid them had you approached them directly.

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?

Yes, we do but LoanTube runs a soft credit check which won’t affect your credit score.. But that’s a good thing. 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.

Why Trust LoanTube?

LoanTube is different. We try to bring you the cheapest possible rates that are available amongst our partner lenders. Although we cannot guarantee that we will find you a lender, you really do have better chances of finding a suitable loan with us because we work with multiple lenders.

How does it work? Our clever computer system compares real-time offers made directly by the lenders. This is all done in real-time and, once we have all the quotes, we will display the offers with their terms and conditions to you.

Taking out Loan and Change of Mind

It is up to you if you want to go ahead and take out of the loan. Please read the terms, conditions, and costs (including APRs and other fees/costs) of the loan to decide whether its right for you. If you accept, a loan agreement will be made between you and the lender but if you change your mind, you can cancel it within 14 days.

Your Quote

In the vast majority of the cases, the quote you see on our offer screen is the quote you get. Occasionally, a lender may need to ask additional questions and do additional checks on your application. Depending on the information you give or they obtain from their sources if that makes your application a significantly riskier, they may change the APRs/quotes of the loan, which could make it more expensive, but you are free to reject such offers. They may also withdraw the offer of a loan.

Our Service is Free

LoanTube’s service is free regardless of whether you find a loan or not, and whether you decide to take up the offer. Under no circumstances, you will pay anything for our services. We receive payment from the lender in the form of a commission whenever a loan is taken out by a customer using our service.

How to Apply

You can apply for an unsecured personal loan with us anytime. It will not take much time to complete our loan application form. To start, click here.

Representative APR example

We compare loans that can be paid back over terms of between 1 month and 25 years. The APR interest rate you will be charged depends on your personal circumstances, and will be between 3% and 299%.

This is a representative example of what it may cost: a Loan of £7,500 over 60 months at 3.3%, APR would equate to monthly repayments of £135.60, and the total cost of the loan that you pay back would be £8,136.22.

 


Caveats:

**Credit subject to status & affordability assessment.
Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK

**Loan Disbursal time vary lender to lender. Please read lender’s Terms & Conditions before you choose to accept the quote of any lender.