Compare £1,000 short term loans

If you've found yourself facing unexpected financial difficulty, you might be considering a £1,000 payday/short term loan. Use our guide to compare rates from a range of lenders, calculate what it's likely to cost you and learn more about how short term loans work.

Regardless of how carefully you plan your finances, it’s not always possible to know what’s around the corner. Whether you need to replace a household appliance or fix a car, a £1,000 short term loan is one way to bridge the shortfall for a few weeks.

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

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


How long do you need to borrow for?


1 - 4 of 4
Name Product Available Amounts Monthly repayment Total payable Link
QuidMarket Short Term Loan
£300 to £1,500
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Representative example: Borrow £300 for 3 months at a rate of 292% p.a. (fixed). Representative APR 1302.3% and total payable £454.38 in 3 instalments of £151.46.
The Money Platform Short Term Loan
£100 to £1,000
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Representative Example: Borrow £500 for 6 weeks with repayment method of One Payment. Total amount payable: £647. Representative 839.20% APR, interest rate 255.5% per annum.
Moneyboat Short Term Loan
£200 to £1,500
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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.
Lending Stream Instalment Loan
£50 to £1,500
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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.
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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

Drafty Line of Credit
QuidMarket Short Term Loan
The Money Platform Short Term Loan
Moneyboat Short Term Loan
Lending Stream Instalment Loan

“High-cost short-term credit” is a quick and simple but very expensive way to borrow – with interest rates typically higher and loan durations typically shorter than most other forms of credit. This kind of loan is designed to cover a temporary, unexpected shortfall in funds for a brief period. For longer-term issues, it’s definitely not the answer.

If you do decide to take out a short term loan and – crucially – your application is approved, you could have the money transferred the same day. Before taking out a £1,000 payday/short term loan, you should consider alternative options. A good place to find help and advice on this is the government’s money advice service at moneyadviceservice.org.uk.

Is high-cost short-term borrowing a good idea?

Payday or 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 short term loan, make sure you’ve considered other options. Is the expenditure 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.

Payday loan, instalment loan or traditional personal loan?

Wondering what the difference is between these 3? Well, the first thing to remember is that these aren’t technical classifications – they’re simply terms that are widely used (and not always in a consistent way).

When people talk about a “payday loan”, they’re generally describing a small loan that’s paid back within 1 month – on your payday. The majority of payday lenders now also offer “instalment loans”, where you can spread loan repayments across multiple instalments (normally monthly, but sometimes fortnightly or weekly). Traditional “personal loans“, which you’re more likely to find at a high street bank, allow you to borrow larger sums of money for longer periods (1 year plus).

Examples: Borrowing £1,000 using payday, instalment or traditional personal loans

30-day payday loan from a well-known payday lender3-month instalment loan from a well-known payday lender1-year personal loan from a well-known high street bank
AvailabilityOnline payday loans are quick and simple, with plenty of lenders willing to focus more on affordability than credit history. £1,000 is at the top end of the loan amounts available, and payday lenders typically want to start with small loan amounts to prove an individual’s ability to repay.Because spreading repayment makes for smaller, more affordable instalments, lenders may be willing to lend larger amounts if you opt for an instalment loan over a payday loan. Like a payday loan, it’s normally a quick and simple process, with plenty of lenders willing to focus more on affordability than credit history.Personal loans are available from high-street banks, supermarkets and specialist companies. £1,000 is at the lower end of the amounts available. It can be a slower process with stricter eligibility requirements than a payday loan, but it is quicker and potentially easier if you choose a lender you already bank with (although not necessarily the cheapest option).
Fixed interest rates0.8% per day (292% p.a.)267.75% p.a.24.9% p.a.
RepaymentsOne repayment of £1240.003 monthly repayments of £492, or 13 weekly repayments of £110.0812 monthly repayments of £93.81
Set-up fees£0£0£0
Total cost of borrowing£240£431.04£125.72
Can I overpay/repay early?Yes, at any time. This saves you money in interest.Yes, at any time. This saves you money in interest.Yes, at any time, but you are charged up to 58 days’ interest on the amount repaid.

Bear in mind that these are not the only credit options available. You may wish to consider a credit card or an overdraft facility.


Benefits and drawbacks of a £1,000 short term loan

  • Quick turnaround time.
    As competition between lenders has increased and technology has improved, the time it takes to get your £1,000 short term loan has fallen dramatically. Many lenders now aim to provide you with a decision on your loan and transfer it to your bank account within a few hours.
  • Easier approval.
    Short term loan providers can be less strict with who they will lend to than banks. Even if you have a poor credit history, many lenders are still willing to lend, so long as they believe you can afford it.
  • Short terms.
    Unlike other more traditional forms of credit, you can borrow cash for a very short time and can normally repay early to save on interest. This may mean that your loan works out cheaper overall.
  • High interest rates.
    Interest rates on £1,000 short term loans are generally much higher than with most other forms of credit. Many lenders choose to price their loans at or around the legal cap of 0.8% per day.
  • Not a long-term solution.
    Short term loans are just that – for the short term. They are designed to cover an unexpected shortfall. Don’t expect them to cover or solve longer-term financial difficulties. For help and advice on dealing with longer-term financial difficulties, a good place to start is the government’s money advice service.
  • Disreputable lenders.
    Be aware that not all lenders advertising online are legitimate. Before taking out a loan, ensure you the lender is approved by the Financial Conduct Authority (FCA).

Did you know?

In 2015, the Financial Conduct Authority (FCA) capped interest and fees on all high-cost short-term credit loans at 0.8% per day.

They additionally capped all default charges at £15 and the total cost (interest, fees) of loans at 100% of the original sum. This means you’ll never have to pay more than double the amount borrowed.

Eligibility requirements

Eligibility requirements vary from lender to lender, but expect to need to meet at least 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.

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.

A CPA differs from direct debit because it gives the company being paid the ability to withdraw money from your account whenever they wish and take payments of different amounts without consulting you. Most payday loan companies use CPA to collect your repayments. However, you can cancel this at any point by consulting with your bank or provider.

Bottom line

High-cost short-term borrowing is intended as a short term solution and shouldn’t be used to help solve long term financial difficulties. It can provide a quick source of money to help pay for unexpected costs that crop up. At the end of the day, it’s a costly method of borrowing. Therefore, it’s worth considering alternative options for borrowing that may be better suited to your financial needs, such as credit builder credit cards or guarantor loans. As with any loan, you should only take it out if you’re sure you can make the repayments.

Frequently Asked Questions

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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. Most of the data in Finder's comparison tables is provided by Moneyfacts.

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