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 £300 short-term loans
Need £300 to help cover an unexpected shortfall in cash? You might be considering a payday/short-term loan. But before you apply, use this guide to learn more about short-term loans and to compare rates between lenders.
Even if you’ve spent hours carefully budgeting, it’s not always possible to predict what costs are hiding around the corner. Whether your MOT has revealed an unexpected problem with your car or your oven has packed up, “Payday” or short-term loans are one way to cover the unexpected, temporary shortfall in cash. However, “high-cost short-term credit” is an expensive method of borrowing. Before you take a “payday” loan out, make sure you’ve considered alternative options such as those listed at moneyadviceservice.org.uk
Because this type of loan is not designed as a long-term solution, smaller credit amounts and shorter repayment periods (than traditional bank loans) are the norm. They also feature much higher rates of interest. However if your application is accepted it is possible to have your loan transferred to you within a day.
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 should only be considered as a last resort. They may not solve your money problems, and are not a good idea for borrowing over longer periods, or for sustained borrowing.
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 £300 short term loan
Payday/short-term loans are fast and expensive. They’re designed to cover unexpected, essential costs – perhaps repairing a broken laptop or calling out a plumber.
If you do decide to take out a short-term/payday loan you must ensure that you can meet the repayment terms, and you should look to pay off your loan as soon as you can afford to. Missing repayments will not only result in fees but will damage your credit rating.
some key features of a £300 short term loan
- High interest rates. Interest rates on £300 short-term loans are significantly higher than most other forms of credit. Currently Rates are legally capped at 0.8% a day – so if you took out £300 for 4 weeks that’s a whopping £67.20 in interest.
- Short repayment periods. Payday/short-term loans are typically used to help you through the next few weeks or months. However, it is often possible to borrow for longer. Doing so will reduce your monthly repayments but will increase how much you pay overall.
- Quick access to funds. If you’re accepted for a £300 short-term loan, some lenders will aim to transfer funds into your account within a few minutes or hours.
- Early repayment. In most cases it is possible to repay part, or all of your loan early., and in doing so, save money on interest.
- Paid back by CPA. Short-term/payday loans are normally paid back automatically using a Continuous Payment Authority (CPA), but it is sometimes possible to make repayments by direct-debit or by manual bank transfer instead.
Benefits and drawbacks of a £300 short term loan
To be illegible for a short-term loan you’ll normally need to meet the following criteria:
- Be aged 18 or over.
- Be a UK resident.
- Hold a bank account.
- Have an email address and mobile number.
- Have a regular income.
Meeting these requirements does not guarantee you will be able to take out a £300 loan – only that your application 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.
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