Please note: High-cost short-term credit is unsuitable for sustained borrowing over long periods and would be expensive as a means of longer-term borrowing.
Compare £200 short-term loans
Considering a £200 payday/short-term loan to tide yourself over for a few weeks or months? Use our guide to compare rates from a range of lenders and to learn more about how short-term loans work.
Life is full of surprises, and we can’t always be financially prepared for everything it throws at us. “Payday” or short-term loans are designed to help cover occasional unexpected shortfalls in cash, perhaps fixing an essential home appliance or paying a vet’s bill. If you need to borrow £200 for a short period of time, a short-term loan is one way to bridge the gap. There may be other options however, and moneyadviceservice.org.uk is a good place to find alternatives.
If your application for a payday/short-term loan is accepted, funds can usually be transferred to you within a day. The amounts on offer are generally smaller, and rates higher, than those provided by banks. The loans also generally come with much shorter repayment periods as they’re designed to be a short-term helping hand, not a long-term solution.
We compare payday/short-term loans from
Is high-cost, short-term borrowing a good idea?
Payday/short-term loans are a very expensive method of borrowing and are not a good idea for borrowing over longer periods, or for sustained borrowing. They may not solve your money problems.
Before you apply for a payday or short-term loan, make sure you’ve considered other options. Is the expenditure that you’re planning absolutely essential? If you can defer a purchase then you could save yourself money in the long run. If you’re struggling to pay a bill, then why not talk to your electricity, gas, phone or water provider to see if you can work out a payment plan? Read more about alternatives to payday loans at moneyadviceservice.org.uk.
What you need to know about a £200 short term loan
As you may have already guessed from the name, short-term loans are really only a short-term option. They’re designed for when unexpected costs arise that you’re unable to afford. They are not a solution for longer term financial issues and should be paid off as soon as possible.
Some key features of a £200 short term loan
- High interest rates. Interest rates on £200 payday loans are typically very high compared to other forms of borrowing. Rates are legally capped, but at an eye-watering 0.8% a day. On a £200 loan, that’s £11.20 a week.
- Short repayment periods. Payday/short-term loans are typically used to help see people over for a few weeks or months. Some lenders will let you borrow for longer, which will reduce your monthly instalments but will increase the amount you pay in interest overall.
- Quick access to funds If you decide to go for a £200 loan and have your application approved, many lenders could get the money to you the same day.
- Early repayment. Most lenders will allow you to repay some or all of your loan early at any time, which could save you money on interest. Make sure you check early repayment terms before agreeing to a loan.
- Paid back by CPA. Short-term and payday loans are typically paid back using a Continuous Payment Authority (CPA), but you can sometimes opt to pay by direct debit or manually.
Benefits and drawbacks of a £200 short term loan
Before applying for a £200 loan you need to be certain you can meet the repayments. You’ll also need to meet the following criteria:
- Aged 18 or over.
- UK resident.
- Hold a UK bank account.
- Have an email address and mobile number.
- Have a regular income.
Meeting these requirements doesn’t guarantee you’ll be able to take out a £200 loan – only that you will be considered.
What is a Continuous Payment Authority (CPA)?A CPA is a recurring payment in which you give a company permission to withdraw money from your account on a regular basis.
CPA differs from direct debit because they give the company being paid the ability to withdraw money from your account whenever they wish, and to take payments of different amounts without consulting you. Most payday loan companies will use CPA to collect your repayments, however you can cancel this at any point by either consulting with your provider or your bank.
Frequently Asked Questions
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