How does a payday loan work?

By taking out a payday loan, for whatever reason, you will have sufficient funds to keep you going until your next wage slip arrives. The loan usually ranges from £80 to £800 and sometimes even up to £1,000 can be offered depending on the provider you choose. The loan is then repaid on your next payday – within the next 31 days.

Although borrowers mainly take out the loan to plug a gap until their payday, a payday loan can also be effectively used for other purposes at your discretion, as long as it is paid back with interest during the short loan term.

Before you can be given approval for a loan, you must be able to satisfy the payday loan provider that you will have enough cash available to cover the advance repayment. The provider will usually look at how much you can afford to pay back on an individual basis.

Additionally, some payday loan providers will also give you the option of extending your advance as long as you pay the interest over the first loan period.

Lender Loan Amount Employment Bank Account Faxing Required Charges   Up to £750 Yes Yes No Various Apply >> Up to £750 Yes Yes No £25 for every £100 Apply >> £80 - £750  Yes Yes No £25 for every £100 Apply >> Up to £750 Yes Yes No £25 for every £100 Apply >> £80 to £750 Yes Yes No £25 for every £100 Apply >>