What is a payday loan?

A Payday Loan is a short term cash advance to be repaid on your next payday. In effect it works like a bridging loan when you are short on cash and require a quick solution.

What can I use a payday loan for?

With the majority of providers you will not need to justify what you need a payday loan for - it could be to pay off bills, to cover for an unexpected event, or even to do something for yourself such as take a holiday. As long as you can cover the loan with your next pay packet, you are likely to be approved.

What do I need to qualify for a payday loan?

All you require is a regular income and an active bank account with a debit card.

How much can I borrow?

This varies between providers. Minimum loans are usually £80 and the maximum is £750.

How much do I have to pay back?

On top of paying for the money you have borrowed, you must pay a set interest fee. In the majority of cases this is £20 for every £80 you loan, though this can vary between providers.

Can I receive a payday loan if I have a poor credit history?

Yes - however, you must be able to prove that you have an adequate income to pay back the loan and interest.

How do I repay the loan?

By debit card. Payment methods can vary between providers, but debit card is the most common.

Does it matter if I am paid weekly?

Most providers make the cash advance payable after the fourth payday.

Does it matter if I do not own a home?

No. It doesn’t matter if you are a tenant or homeowner as long as you can supply details of your address.

Will it matter if I am self-employed?

Generally this will not be an issue as long as you have a regular income that is paid into your bank account.

Will my employer be contacted?

A payday loan is completely confidential and no personal information can be passed on without your agreement.

How long will it take to receive my loan?

This varies between providers. The majority of providers will put cash into your bank account on the same day, though with some you might have to wait until the following working day.

Can I roll over my loan to the next payday?

Most providers will insist that you pay the interest for the first month and may charge an additional fee for rolling. Others will insist that you start reducing the balance after a set period of time.

Can I take out more than one payday loan at once?

No - all payday loans must be resolved before another can be taken out.

What documents do I require to start a payday loan?

This should be clearly outlined on the provider’s websites. However, you will usually require bank statements, your last payslip, proof of address, proof of signature and photocopies of both sides of your debit card.

Who offers the best payday loan rates?

Interest rates and terms can vary so be sure to use the price comparison table at cymruloans.co.uk to compare payday loans across the market.