Response Funding offers new customers short-term loans of £150 to £200 to be repaid in 3 fixed monthly instalments – in line with paydays. Returning customers could be eligible for loans of up to £500.
Response Funding is a direct lender (not a broker), authorised and regulated by the Financial Conduct Authority. Formerly known as “Fancy a Payday”, it was overhauled in 2016 to better reflect its commitment to responsible lending and fast loan funding times – once approved, you can expect the money in your bank account on the same day.
Response Funding does not offer the same flexibility as many of its competitors, with loans for first-time customers set at £150-£200, and only one repayment option – three monthly instalments. On the plus side, it does consider applications from people with a poor credit history, additionally stating that if you pay back your loan in full on time this could help to rebuild your credit score – giving you more options in the future.
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.
Key features of a Response Funding loan:
Borrow £150 to £200. If you make all your repayments on time and pay off your loan in full, you could then be eligible to borrow up to £500. However, please remember that short-term loans are not suitable for longer-term or sustained borrowing.
Repay over 3 months. Fast Funding only offers one repayment option of three equal instalments, in line with your payday, however you can actually repay the loan early at any point – saving money on interest.
Fixed, high interest rates. With interest rates fixed at the maximum allowed by the Financial Conduct Authority, this is realistically an expensive way to borrow money.
Bad credit considered. If you have a poor credit history, Response Funding will still consider you for a loan. The most important factor is your ability to meet the repayments. If you repay your loan on time, this could help to rebuild your credit score.
No late payment charges. If you miss a repayment date, Response Funding won’t charge you a fee. They will report the late payment to a credit reference agency, however, which could harm your credit rating and your ability to secure finance in the future.
Early repayment. You can repay your loan in full or in part at any time without being penalised. Simply call Response Funding to get a settlement figure. This is recommended, if you can manage it, because you’ll only pay for the days on which you borrow.
How do Response Funding’s loans hold up against the competition?
As well as comparing short-term loans with other types of credit, before you apply for a loan, it’s a good idea to shop around and compare a range of lenders. You can use the table below to get an idea of how much the loan that you have in mind might cost.
How much money do you need to borrow?
How long do you need to borrow over?
Important information: 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
How does a Response Funding loan work?
For new customers:
Use the slider on Response Funding’s homepage to choose how much you’d like to borrow then specify when you get paid so that Response Funding can work out the most suitable repayment dates.
Fill out the online application form with your personal, employment and financial details.
Provide a recent payslip or bank statement, or alternatively agree to Response Funding contacting your employer to verify your income.
Your application will be reviewed by a representative who will check your details and contact you with a provisional decision. It’s possible that you’ll be requested to provide additional documentation at this point.
Credit, identity and affordability checks will be carried out before you are given a final decision on a loan.
Once approved, you can expect the money in your bank account on the same day.
For returning customers:
Go to the “Reloans/Existing Customers” page on the website. Provide some basic details, as well as uploading your latest payslip or bank statement to verify your income.
Response Funding will re-run the necessary credit checks and give you a quick decision on a new loan.
Once approved, you can expect the money in your bank account on the same day.
How do I pay back my loan?
Like most short-term loan providers, Response Funding uses a Continuous Payment Authority (CPA) to collect the repayments from your bank account on your chosen dates.
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’s differ from direct debits 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’s to collect your repayments. You can cancel this at any point by either consulting with your provider or your bank, but you’ll need to ensure that you make your loan repayments on time by other means.
What are the eligibility requirements?
You should only apply for a Response Funding loan if you are certain you can meet the repayment terms. You must also:
Be at least 21 years old
Be a UK resident
Have a UK bank account
Be in permanent employment
Earn at least £900 a month and have it paid into your bank account
Is high-cost, short-term borrowing a good idea?
Short-term loans offer a quick solution when you get into unexpected difficulties with your finances, but they are a very expensive method of borrowing. Therefore, you should only consider this option as a last resort. Short-term loans are unlikely to solve your money problems in the long term, and are not suitable for borrowing over longer periods, or for people with serious debt problems.
Before you apply for a short-term loan, make sure you have considered all other options carefully. 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 are struggling to pay a bill, then try talking 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.
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 should never have to pay more than double the amount borrowed.
Frequently Asked Questions
The maximum loan for a first-time customer is £200. This may be increased on a future loans, circumstances depending. It is very important that you are able to repay the loan without adversely affecting your financial situation.
The amount you can borrow from Response Funding is determined by your personal circumstances. It uses an internal scoring system along with a credit search and affordability calculation to help determine how much it will lend to you.
Response Funding currently offers its loans over 3 monthly payments, although you can repay early and save on interest. If you are paid monthly, your pay day will normally be your loan payment date.
Your bank statement will list the payments as “Response”. On rare occasions Response Funding may need to use a different payment provider. Transactions under this provider will appear as from “THL”.
If you find that you are unable to repay your loan, you should contact Response Funding straight away. You may be able to negotiate a repayment plan that is more manageable for you. However, bear in mind that the longer you have the loan, the more you’ll pay in interest.
While Response does not charge for missed payments, it will inform credit reference agencies if you miss a payment and this will affect your credit rating.
Chris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. In his spare time Chris likes forcing his kids to exercise more.
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