Payday Loan Providers Compared

For those who don't have any other alternatives, we've listed some of the major payday loan providers in the UK. This information will give you the background on what the lenders terms, fees and penalties look like. Remember, you must always try to read the small print to understand what you are entering into and should you have any questions there are many free services that can offer advice and help.

At its peak in 2014, there were nearly 400 payday lender firms in the UK. Many of these have since ceased trading, Wonga being the biggest news story around these types of companies; others have been amalgamated and rebranded to "loan another day". The common theme here is that payday loans are bad and should be a last resort after all other avenues have been explored. Below are some examples of the payday loan companies you may have seen advertised for UK lending.

QuickQuid

QuickQuid allow new customers to apply for a loan of up to £1000, and returning customers can access a loan for up to £1500. Once approved, money will be sent to your bank account within 10 minutes after approval. If your bank does not support faster payments, it may take longer for funds to reach your account.

QuickQuid offer loan top up's and extensions for repayments but be careful with both these options as fees can be added for additional lending and in the case of the loan extension they state "If approved for an extension, you'll be able to extend repayment of your loan's principal by either one or two additional pay periods. You will be assessed daily interest for this additional time".

QuickQuid representative Example: Amount of credit, £300 for 65 days with one repayment of £78.00 and one repayment of £378.00. Total repayment: £456.00. Interest: £156.00. Interest rate: 292% pa (fixed). 1294.1% APR Representative. Late repayment fee £15.

Lending Stream - Max APR 1721%

Mission Statement - "Your alternative to Payday Loans". Lending Stream started providing short-term loans online in 2008. Since then, we've got better and quicker at streaming loans, helping more people to find the financial help they need.

We provide an alternative to payday loans, where you get six months to repay in instalments. You can apply for up to £800 as a new customer, or up to £1,500 as a returning customer.

Lending Stream doesn't offer loans less than 60 days. Early prepayment options that are available are not associated with any fees or cost. Maximum APR 1721.0%. Given a Representative APR is 481%; if you borrow £200 over 6 months at 186.15% p.a. (fixed) you would owe 6 equal repayments of 51.95. You will repay £311.69 in total; there are no additional fees. Late repayment fee £15.

PiggyBank - APR ranges from 1255% APR to 1698.1% APR

Mission Statement - "We are different to the traditional payday loan because we know that it is not always possible to repay a loan on your next payday. That is why our loans can be taken out anywhere from two months to five months and you can borrow between £200 and £1000. All of our loans are subject to credit and affordability checks and they are completely transparent so that you know how much your loan will cost and when you are due to pay it back.

PiggyBank loans offer short term loans up to 5 months in this example the amount borrowed is £250 over 3 months with a total amount payable of £379.44 with an interest rate of 292.25%. Late payment fee £15.

Pounds to Pocket

Pounds to pocket offer loans of up to £2000 over 12 months. The website states that they are a direct lender meaning that Pounds to Pocket works directly with you cutting out the middleman.

Pounds to pocket representative Example: Amount of credit, £850 for 11 months at £146.30 per month. Total repayment of £1,609.25. Interest: £759.25. Interest rate: 150% pa (fixed). 277.6% APR Representative. Although the representative APR is a good way to compare lenders, not all customers who apply for a loan with Pounds to Pocket will get this rate.

Payday Loan Tips

  • Almost all leading lenders ask for a bank account with a debit card. If you give them a continuous payment authority (CPA), they use the information to withdraw money from your debit card without your permission.
  • If you are taking a payday loan, you should deal directly with lenders. Avoid brokers entirely as they tend to charge high fees.

Alternatives to Payday Loans

Most people who resort to payday loans believe they don't have any other choice.

However, given the high cost and risk involved with payday loans, it is always good to consider all possible alternatives.

In this payday loan guide, we look at your alternate financial solutions and options.

Credit Unions, Community Development Finance Institutions (CDFIs), Loans and grants from local councils are a few of the many options that we introduce and explore. Payday loans are not your only option.