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.
The Money Shop short-term loans review
If you’re in a financially tough spot, you might be looking to get a loan from a high-street lender like The Money Shop. So how does The Money Shop stack up against the competition?
The Money Shop is a direct lender which is authorised and regulated by the Financial Conduct Authority (FCA). It offers a range of financial services in-store for people looking to get cash fast – from pawnbroking and cash for gold, to short-term loans. With over 200 stores nationwide, it has operated on UK high streets for more than 18 years.
Are there alternatives?
As well as considering other financial products, such as credit builder credit cards, you’ll want to compare lenders to make sure you’re getting a competitive deal. If you’ve had a quote on a loan from The Money Shop, you can use the table below to get an idea of how much the same loan would cost you with a range of popular short-term lenders.
We compare payday/short-term loans from
Key features of The Money Shop short-term loans
|Product Name||The Money Shop Short Term Loan|
|Available Amounts||£100 to £2,000|
|New customer maximum||£2,000|
|Loan terms||3 months to 6 months|
|Soft search eligibility check|
|Repayment period options||Monthly|
|Default repayment method||Continuous payment authority|
|Repay early at any point|
|Parent company||Instant Cash Loans Limited|
|FCA registration number||681750|
How does a loan from The Money Shop work?
If you’ve decided to apply for a loan with The Money Shop, you’ll have to visit one of its high street stores, where you’ll run through the following process with an adviser:
- Provide your debit card, and the other necessary identity documents described above, to one of the customer advisers.
- The adviser will run a quick credit check and an affordability assessment.
- If you’re approved, the adviser will give you up to six different instalment plan options, detailing how much you would ultimately end up paying back for each.
- If you’re happy with a deal, sign the loan agreement, and you’ll be given the cash there and then.
- Repayments to The Money Shop will be automatically taken from your bank account through a continuous payment authority (CPA). This will happen on the agreed date of payment.
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 differs from direct debit because it gives the company being paid the ability to withdraw money from your account whenever it wants, and to take payments of different amounts without consulting you. Most payday loan companies will use a CPA to collect your repayments, although you can cancel this at any point by either consulting with your provider or your bank.
Am I eligible for a loan from The Money Shop?
You should only apply for a loan from The Money Shop if you can meet the repayment terms. You must also:
|Min. income||£417 after tax per month|
|Additional eligibility notes||You must be in employment, receiving a pension or disability benefit/living allowance.|
You must Hold a bank account with a valid debit card.
You’ll also need to bring the following to the store when you apply for a loan:
- Photo ID
- Your debit card
- Proof of income dated within 30 days
- Proof of address dated from within the last 3 months
Early repayment options
|Repay early at any point|
|Repaying early can reduce overall interest|
|Interest is only applied to days where funds are outstanding|
Is high-cost, short-term borrowing a good idea?
Payday loans and high-cost, short-term credit are a very expensive method of borrowing and should only be considered as a last resort. They won’t solve your money problems long term, and are not a good idea for borrowing over longer periods, or for sustained borrowing.
Before you apply for a payday or short-term loan, make sure you’ve considered other options. 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’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.
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