Do guaranteed payday loans really exist?

A legit lender won't guarantee, but can you apply for a payday loan or short-term instalment loan where approval is almost guaranteed?

Updated

There are plenty of instances where people are caught short and need extra money, but if you have bad credit, it can make borrowing harder. If you need money quickly, you could turn to a payday lender to get a loan. These loans are typically for relatively small amounts and relatively short-terms. As such, payday loans typically have looser eligibility requirements, with many lenders focusing less on your credit rating, and more on how affordable the loan would be for you.

If you need a fast loan but you’re worried about your credit rating, you might be looking for lenders offering “guaranteed approval”, or “100% approval”. Take caution. Loan companies are required to lend responsibly, which means assessing whether or not the loan you’ve applied for is right for you. No payday lender should claim to guarantee approval – if they do they’re not acting responsibly, and you should be very wary.

So realistically, there’s no such thing as a guaranteed payday loan. But that doesn’t mean you have nowhere to turn.

So what are my options?

Many payday lenders don’t require great credit. They’ll still have other eligibility criteria you need to meet in order to be considered – primarily they’ll be interested in your ability to repay the debt.

Lenders are upfront about the minimum criteria you’ll need to meet in order to apply. Never apply for a loan until you’ve checked these criteria. If you do, not only could you set yourself up for disappointment, you could actually damage your credit record further – that’s because each time you apply for a loan, the lender will run a full credit search which will be logged on your credit file and which often has a slight negative effect on your credit score (usually this is short-lived – being repaired by a few months of responsible financial behaviour).

If you apply for too many loans in a short space of time, as well as damaging your credit score you could put off prospective lenders, who may interpret all the applications for credit as a sign of severe financial issues.

You may wish to consider using a payday loan broker. Brokers will usually have a panel of lenders that they refer applicants to, so if you’re not successful with one, your application is passed to the next, then the next, and so on. You’ll only have complete a single application form, with the broker, rather than having to go through the process several times with several different lenders.

What should I consider before applying to a lender?

These are short-term financial solutions, meaning you have to repay the loan on the scheduled due date, typically your next payday. If you decide to take out a payday loan, keep in mind the interest will be high. You’ll need to budget for your repayments before you borrow, otherwise you may be stuck in a cycle of bad debt.

When comparing payday loans to find the best offer, keep in mind some of the following features:

  • Available amounts and durations. Different lenders have different minimum and maximum loan amounts, and different loan terms available.
  • Overall cost. This is usually the most important factor to consider – even more so than the APR. Look for the loan with the lowest overall cost, while ensuring you can afford the repayments.
  • Turnaround time. Not all payday loan providers are equally quick in processing applications and disbursing approved funds.
  • Eligibility criteria. Always check the minimum criteria for applicants before you apply – it only takes a moment but could save you from disappointment and damaging your credit score.
  • Repayment flexibility. Some enders give borrowers the option to repay weekly. If you get paid weekly, this could be an advantage.
  • Early repayment policy. Hope to clear your loan ahead of time? Great idea. Check the specific lender’s policy to make sure that doing so will save you money on interest.

You can also search the Financial Conduct Authority (FCA) register to check that the lender you have in mind is authorised and regulated.

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.

Compare live rates from a range of payday lenders

Table: promoted deals, sorted by total payable
How much money do you need to borrow?


How long do you need to borrow over?


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.
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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.

We compare payday/short-term loans from

Lending Stream Instalment Loan
Savvy.co.uk Personal Loan
The Money Platform Short Term Loan
QuidMarket Short Term Loan
CASH4UNOW Short Term Loan
Mr Lender Short Term Loan
Moneyboat Short Term Loan

Eligibility

Each lender will specify its own minimum eligibility criteria for borrowers. Being eligible means your application will be considered, but isn’t a guarantee of acceptance. Whichever lender you opt for, you’ll likely need to:

  • Be over 18 years old
  • Be a UK resident
  • Hold a bank account
  • Be able to prove you have a regular income and can afford the loan you have applied for
  • Agree to go through a credit search

Having assessed your application, in some cases the lender may offer you a smaller or shorter loan than you originally applied for.

Frequently asked questions about guaranteed payday loans

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.

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