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 fast £50 loans
Need a quick £50 to cover an emergency? Here’s how to find the best short-term lender.
With interest capped at an eye-watering 0.8% per day, short-term loans are far from ideal. At the same time, when unexpected expenses pop up, they have a role.
The funds on offer are smaller – and the rates higher – than loans on offer from traditional banks. You’ll also be expected to pay the money back faster.
Below, we explore whether short-term lenders are the best option when you need a quick £50, and how to find the best deal.
How does a £50 short-term loan work?
This form of loan is often referred to as a ‘payday loan’, because you’re expected to pay it back in one lump sum as soon as you’re able to (most likely your payday). The lender will ask you to name this day. Interest charges will be levied daily, so the further in the future your payday is, the more you’ll be charged. This is different from traditional loans, where your debt is paid back in monthly instalments.
Key features of short-term £50 loans
- High interest rates. The defining feature for payday loans is the high interest rates. The cap for payday loan rates was recently set at 0.8% per day, which amounts to an APR of 1,286%.
- Short repayment periods. It’s rare for short-term lenders to offer £50 loans for more than 30 days, although some may stretch as long as 90 days.
- Late repayment fees. Short-term lenders are known for clamping down on you harshly if repayments arrive late. It’s a good idea to compare late repayment fees, but it’s much better not to pay late at all.
- Quick access to funds. As these sorts of loans are for emergencies, many short-term lenders boast about their speed of transfer. It’s common to expect the money in your bank account within an hour. If you stumble across a lender that takes more than day to transfer £50, you might want to look elsewhere.
Pros and cons
- Quick access to money
- Simple application process
- Lenient eligibility criteria
- High interest rates
- Large penalties for large repayments
- Short repayment periods
Although it’s easier to be approved for a short-term £50 loan than it is for a more traditional loan, most lenders will still list minimum eligibility criteria. Read these criteria before applying to ensure you don’t waste your time asking for a loan you’re not eligible for.
For a loan of this size, most lenders will check:
- You’re over 18 years old
- You have a regular source of income paid directly in your bank
- You have a valid phone number and email address
- You’re not already in serious debt
How to compare lenders
The easiest way to compare lenders is by using finder.com comparison tables. Our tables lay out all of these factors on the page in a digestible format that makes it easy to find the best deal for you.
With all of these factors in mind, it should be simple enough to find the best possible payday lender for your needs. With such high rates in this market, the difference between the best lender and the rest could be quite significant, especially if you’re borrowing money for a number of weeks.
If you do search for a lender using a different method, check whether it’s FCA-registered. This will ensure its terms and conditions meet certain standards of compliance when offering payday loans.
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