The best UK payday loans of 2020

The best short term loan for you will depend on your circumstances – here are the questions to ask.

Updated

Fact checked
Picture not described

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

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.

Which payday loan is best?

We all experience times in life when we need money quickly, but if possible, it’s best to avoid payday loans. Before you start comparing payday and short term lenders, you should make sure you’ve exhausted other options.

Here’s a handy list which includes obvious suggestions like deferring your expenses or borrowing from friends, but also less obvious ideas like arranging a payment plan with your creditors or requesting an overdraft limit increase.

But if you’ve already considered these and have decided to take out a short term loan, how do you find the best one? Or, with the eye-watering interest rates involved, should that be the least-worst one? Let’s see which payday loans are best for the following situations.

Best fast payday loan: Lending Stream

If you need money at extremely short notice, it’s possible to get approved for a loan and funded within minutes. Providers like Lending Stream offer flexible loan amounts, instant decisions, and extremely quick funding, so you can have the money almost immediately, but may not be receiving the best rate available to you.

Lending Stream Instalment Loan

Finder's pick for when you need cash fast: Lending Stream

  • Borrow £50 to £1,500 over 6 months
  • Instant decisions in most cases
  • Money streamed to your bank in under 90 seconds
Representative example: Borrow £200 for 6 months at a rate of 292% p.a. (fixed). Representative 1,333% APR and total payable £386.61 in 6 monthly payments of £64.44.

Best no fuss payday loan: SafetyNet Credit

If you need ongoing access to additional funds but want to avoid the hassle of having to apply for a new loan, you could consider flexible credit facilities like SafetyNet Credit. Instead of borrowing a single lump sum, SafetyNet Credit will connect to your bank account and automatically top up your account when you need it, and only take repayments when you can afford it.

SafetyNet Credit Facility

Finder's pick for an automatic line of credit loan: SafetyNet Credit

  • Fast and flexible credit up to £1,000
  • Request credit when you need it online
  • No application or late repayment fees

Representative example: Borrow £500 at a rate of 0.8% per day for up to 40 days (292% p.a., variable). Representative 68.7% APR variable.

Best payday loan for bad credit: QuidMarket

If you have bad credit, it can be hard to get approved for a loan with a traditional lender. However, short-term loan companies like QuidMarket are still willing to lend to you even if you have poor credit history, and offer loans up to £1,500 with no additional fees.

QuidMarket Short Term Loan

Finder's pick for when you have bad credit: QuidMarket

  • Fast and flexible loans of £300-£1,500 over 3-6 months
  • Applications from bad credit considered
  • No application or late repayment fees

Representative example: Borrow £300 for 3 months at a rate of 292% p.a. (fixed). Representative APR 1,301% and total payable: £454.37 in 3 instalments of £151.46.

Best payday loan for repaying early: CASH4UNOW

Most payday lenders let you repay early without penalty, but the best lenders only charge interest on the days you borrow, which is a little different. That means that repaying early offers guaranteed savings, which is pretty hand when you could be paying up to 0.8% interest each day.

CASH4UNOW Short Term Loan

Finder's pick for flexibility: CASH4UNOW loans

  • Repay early at any point without penalty
  • Only pay interest on the days you borrow
  • Decision in 15 minutes

Representative example: Borrow £200 for 4 months at a rate of 292% p.a. (fixed). Representative APR 1314% and total payable: £332.00, in 4 payments of £83.00.

Best payday loan for those who can wait: Creditspring

If you can plan ahead, you can make some big savings. Companies like Creditspring are looking for innovative replacements for traditional payday loans. With Creditspring you sign up to a relatively cheap monthly subscription plan, and after 14 days you can take out a short term loan.

Creditspring Membership

Finder's pick for when you can plan ahead: Creditspring

  • Borrow up tor £500 twice a year, available on demand.
  • Monthly membership fee of £6 or £8.
  • Repay each advance in up to 6 monthly payments.
  • 0% interest rate – only pay back what you borrow plus the monthly fee.

Representative example: Total amount of credit of £1,000 over 12 months. The first payment for each advance is £83.35 followed by 5 monthly repayments of £83.33. 12 monthly membership payments of £8. Representative APR 38.6% and total payable: £1,096.

Do payday loans ruin your credit?

No, taking out a payday or short-term loan will not necessarily ruin your credit score, as long as you repay the loan in full and on time. In fact, if you successfully pay off a short-term loan this will demonstrate to lenders that you can be a responsible borrower, which can actually help improve your credit rating.

However, taking out a payday loan that you then fail to repay on time, or applying for multiple payday loans, can have a large negative impact on your credit score. So if you need money quickly, it’s important to make sure you’ll be able to pay off your loan before you apply, as otherwise you may find it even harder to get a loan in future.

What is the best online payday loan?

Almost all payday loan providers offer their loans online, and many will only let you apply for a loan online and not in person. Most payday lenders will also let you apply online in minutes, and generally give you a decision on your application almost instantly, so it’s hard to separate the “best” online payday loan.

Instead, you should look for the payday loan that best suits your financial situation, which generally means the loan that lets you borrow as much as you need, at the best rate, and with favourable repayment terms.

10 ways to find the best payday loan

Here are ten simple questions you can ask while searching for a short-term loan:

  1. What’s the overall cost? Since these loans are far from cheap, the most important thing to consider is usually the total cost of borrowing. The APR of payday loans can be confusing, but lenders must also tell you the projected cost upfront. Look to keep the overall cost as low as possible, while making sure the repayments are affordable for you.
  2. Is the lender legit? Only borrow money from loan companies authorised and regulated by the FCA (that’s the Financial Conduct Authority). It’s quick and easy to check that the lender you’re considering is in the FCA register.
  3. Does the lender offer a loan term that suits you? As a general rule, the longer you borrow for, the more a loan will cost. But sometimes it’s necessary to spread repayment of a loan, in order to make each instalment manageable. When you borrow for longer, although it’ll cost more, you’ll usually be able to access better rates. If a payday/short term lender doesn’t offer the length of loan that you’re after, then try another – there are plenty of them in the market.
  4. Does the lender let you repay on a date that suits you? The best loans allow you to specify the exact date(s) on which you’d like to make a payment. You’ll usually want to align this with when you receive your income. If you get paid weekly, the the best loan for you might allow weekly repayments.
  5. How long does it take to process the loan? Some of the best short-term loans ensure that you have access to the approved funds the same day, within hours or even minutes, while others, for example, might not approve and issue loans outside of office hours. If the turnaround time is important to you seek out a lender offering faster loans.
  6. Are you aware of all the fees? While some of the best short-term loans provide quick access to funds, take the time to find out just how much you’ll have to pay in the form of fees. The best short-term loan company in this regard is the one that charges the lowest fees. It’s rare to find admin/product fees in this game, but fees for late payments will be anywhere from £0 to £15. Missing a repayment is a terrible idea – you’ll damage your credit record, annoy your lender and find it harder to borrow in future.
  7. Does the lender accept bad credit applications? If you’re looking for the best bad credit short-term loan, take into account that most short-term lenders accept applications from individuals who don’t have good credit history. If the lender you’re looking at requires good credit history and you aren’t eligible, you could simply move on to the next.
  8. Can you save money by repaying early? The best short-term loan company should let you repay early at any time, and should only charge you for the days on which you borrow.
  9. Is there a store network and online presence? Any lender that calls itself the best short-term loan company should offer you convenience when it comes to borrowing. This may mean they have a wide network of stores across the country or that they let you apply for and manage your loan online.
  10. Is it easy to track and manage your loan? Staying on top of your loan is important. If you live on your mobile, then the best lender might offer a decent app for tracking your loan, making payments etc.

Compare short-term loan costs

Table: promoted deals, sorted by total payable

Here are some loan providers you can apply with. Note that the max loan amount is based on the lender’s max amount and will vary based on your state.

How much do you need to borrow?


How long do you need to borrow for?


Name Product Available Amounts Monthly repayment Total payable Link
Lending Stream Instalment Loan
£50 to £1,500
Go to site
More Info
Representative example: Borrow £200 for 6 months at a rate of 292% p.a. (fixed). Representative 1,333% APR and total payable £386.61 in 6 monthly payments of £64.44.
Savvy.co.uk Personal Loan
£300 to £3,000
Go to site
More Info
Representative example: Borrow £1,000 for 12 months at a rate of 152.33% p.a. (fixed). Representative 352.7% APR and total payable £1,999.92 in 12 monthly payments of £166.66.
The Money Platform Short Term Loan
£250 to £1,000
Check eligibility
More Info
Representative example: Borrow £500 for 6 weeks at a rate of 255.5% p.a. Representative APR 839.20% and total payable: £647 in 1 payment.
QuidMarket Short Term Loan
£300 to £1,500
Go to site
More Info
Representative example: Borrow £300 for 3 months at a rate of 292% p.a. (fixed). Representative APR 1,301% and total payable: £454.37 in 3 instalments of £151.46.
CASH4UNOW Short Term Loan
£150 to £1,000
Check eligibility
More Info
Representative example: Borrow £200 for 4 months at a rate of 292% p.a. (fixed). Representative APR 1314% and total payable: £332.00, in 4 payments of £83.00.
Mr Lender Short Term Loan
£200 to £1,000
Go to site
More Info
Representative example: Borrow £200 for 6 months at a rate of 292% p.a. (fixed). Representative APR 1,248.3% and total payable £367.40 in payments of £81.33, £73.23, £65.13, £57.33, £49.24 and £41.14.
With this loan your monthly repayment decreases over time. Our 'Monthly repayment' above is a representative figure designed to help compare lenders side by side.
Moneyboat Short Term Loan
£200 to £1,500
Go to site
More Info
Representative example: Borrow £400 for 4 months at a rate of 255.5% p.a. (fixed). Representative APR 939.5% and total payable: £597.48 in 4 payments of £149.37.
loading

Compare up to 4 providers

Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

What are the pros and cons of short-term loans?

  • You can get your money quickly. When you’re applying for a short-term loan, you can often get your money immediately after approval if you apply in-store, and many online lenders transfer approved funds to your bank account the same day.
  • Freedom to use the money as you like. You apply for a short-term loan for almost one-off expense.
  • Bad credit is OK. Short-term loan providers will usually consider applications from people with poor credit histories. They’ll typically focus more on how affordable the loan would be for you.
  • Really, really expensive. While interest is capped by the FCA, it’s capped at 0.8% per day. That’s 80p per day for every £100 you borrow. Disappointingly, a large proportion of the lenders operating in this space do simply charge the maximum
  • Disreputable lenders. If a short-term lender sounds great and is offering rates too good to be true, be sure to find out if they are. Ensure the lender complies with all relevant regulations and that they are operating legally.
  • Small loan amounts. If you’re using a new lender for the first time, it’s likely they’ll only offer you a small sum.

Anything that isn’t “the best” with these loans?

Before you apply, ensure that you won’t have problems repaying the loan. If you think you might have trouble, don’t take out the loan. Late or missed payments usually lead to fees and additional interest, and negatively impact your credit profile. Always work the repayment schedule into your budget, and the best loans will remain the best.

Even the best short-term loans can end up costing much more than originally anticipated, especially if you don’t repay your loan on time.

Bottom line

Bear in mind that while the best short-term loans will give you quick access to the money you need, there are a number of competing short-term loan providers vying for your attention, so compare all your options before applying.

Questions you might have asked

We understand that you may be cautious when applying for short-term loans. Here are some of the frequent questions our users have asked.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site