Payday Loans
Looking for a payday loan? Lending Stream offers an alternative: short term loans. We’re an FCA-authorised direct lender, offering loans from £50 to £800 for new customers and £100 to £1,500 for existing customers. You can apply for a loan on our website, receive an instant decision, and get cash to your bank within 90 seconds (if approved).
Representative Example: Given a Representative APR of 1271%, if you borrow £300 over 6 months at 292% p.a. (fixed), you would owe 6 equal repayments of £96.39. You will repay £578.36 in total.
Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk.
Payday loans? The Lending Stream answer
Trusted
Rated excellent on Trustpilot & 99% recommendation rating on Reviews.co.uk.
Convenient
Secure online application available 24/7. A decision in seconds, not days.
No early repayment fees
Repay in 6 monthly instalments. We don’t charge for early repayment.
Fast
Cash sent to your bank in under 90 seconds, if approved. It may take longer to reach your account depending on your bank’s processes.
Lending Stream is FCA authorised
At Lending Stream, we’ve been proudly helping customers in the UK since 2008. In fact, we’ve helped over half a million customers with their financial needs by lending over 2.5 million loans. We’re an FCA authorised and regulated direct lender, with authorisation number 689378. Responsible lending is our biggest priority, and we want to make sure our customers` experience is great.
To achieve this, we believe transparency is key. We want you to fully understand the costs, fees, and repayment plans associated with our loans. At Lending Stream, we follow the rules set by the Financial Conduct Authority (FCA). This means charges, like interest rates and fees, are clear and upfront. No hidden costs, no surprises – everything is clear and easy to understand.
Is Lending Stream a payday loan direct lender?
No, Lending Stream is not a direct payday loan lender. We offer short term loans as an alternative to payday loans online. As a direct lender, we make instant decisions and the money is transferred directly into your bank account.
Whether you need a loan to manage unexpected bills or a financial emergency, Lending Stream is here to provide a solution.
What is a payday loan?
A payday loan is a short term loan designed to help you cover urgent expenses until your next payday. These loans, also known as small loans, are intended to be repaid within a short period, usually by your next paycheck, though the terms can vary between lenders.
Many providers now offer the option to apply for a payday loan online, allowing borrowers to apply conveniently from home.
While payday loans can be a helpful option, they often have high interest rates and fees, making them expensive for many borrowers. It’s essential to use a payday loan responsibly and only when necessary to avoid falling into a cycle of debt.
Eligibility criteria for payday loans
Your eligibility for a payday loan will depend on factors like age, residency and income. Although we don’t provide payday loans at Lending Stream, you may be eligible for a short term loan. You’ll need to:
- Have a valid debit card
- An active UK bank account
- Be a UK resident
- Should be at least 18 years old
- Should be in regular employment with a monthly income of at least £400
We might ask you to show proof of your income during our application process. We do this to see if you can afford the loan repayments. People with bad credit history will also be eligible to apply as we think that a credit score may not give us a complete view of your current financial situation.
Representative 1271%APR
How to apply for a payday loan in the UK?
To apply for a payday loan in the UK, select a direct payday loans lender, fill out an application with your details, provide income proof, and if approved, receive funds in your bank account.
At Lending Stream, you can apply for a payday loan alternative through our website. All you have to do is fill out our online application form and give us the following information:
- Choose the amount which you want to borrow with us
- Fill in all your personal details
- Provide us with your employment, salary, expenses, and banking details
Once your application is received, we will run a credit check and an affordability check on your profile. If approved, we will send the approved amount to your bank within 90 seconds. Depending on your bank’s processes, it may take longer to reach your account.
We understand that credit scores don’t always represent your current financial situation. That’s why we consider individuals with a poor credit history too for bad credit loans.
Representative 1271%APR
What can I use a payday loan for?
Payday loans are typically used for urgent, short-term financial needs. Here are some common reasons why people get a payday loan:
- Car repair
- Urgent home repairs
- Unexpected bills
- Temporary cash flow issues
- Unexpected funeral expenses
It’s important to remember that a payday loan is not a long-term solution for ongoing financial difficulties. Before applying for a loan, check your financial situation. Ensure that you can repay it on time to avoid additional fees and financial stress.
When should you avoid payday loans?
You should generally avoid payday loans in the following situations:
- Don’t use them for non-emergencies or non-essential expenses.
- If you’re already in debt, don’t go for a payday loan.
- When you haven’t reviewed the terms and conditions carefully.
- When you don’t know the lender’s reputation.
- When you don’t have a stable source of income.
- Never use payday loans for investment or speculation.
Payday loans should be used only in genuine emergencies when no other options are available.
How much can I borrow?
The amount you can borrow will depend on your income, credit history, and the terms of the payday lender. Generally, payday lenders offer loans ranging from £50 to £1,000. The loan amount is often determined by your ability to repay the loan on your next payday, ensuring it fits your budget.
At Lending Stream, you can borrow between £50 and £800 if you’re a new customer and £100 to £1,500 if you’re an existing customer. The loan amount you qualify for depends on your financial situation, including your income and ability to repay.
How does the loan repayment work?
Loan repayment for an online payday loan usually happens in a single payment, typically on your next payday. Payday lenders will outline the repayment period and amount when you’re approved for the loan.
Carefully consider the repayment terms and ensure you can repay the loan on time to avoid additional charges or added financial difficulty.
At Lending Stream, we offer short term loans with repayment periods of up to 6 months. Unlike lenders who offer payday loans, we provide fixed monthly instalments, making it easier for you to budget and manage your repayments. You can also repay your loan early without any extra charges.
How to check if a payday loan direct lender is legit?
If you want to borrow money, it’s important to ensure that the direct lenders you have shortlisted are trustworthy. Here are some ways to check:
- FCA Authorisation: Make sure the lender is authorised by the Financial Conduct Authority (FCA).
- Transparent terms: A payday loan direct lender will clearly outline loan amounts, repayment schedules, and any fees before you sign an agreement.
- Check for hidden fees: Be cautious of payday lenders that don’t disclose all the fees upfront. Legitimate lenders are transparent about the total cost of the loan.
- Look for reviews: Research customer reviews or complaints to see if the lender has a good reputation.
- Customer Support: A legitimate payday loan lender will have customer support to answer your questions and address any concerns.
By following these steps, you can protect yourself from potential scams or loan sharks and find a reliable payday loan provider.
Alternatives to Payday Loans
1. Short term loans
Short term loans provide a flexible alternative to payday loans. They allow borrowers the opportunity to borrow a small amount of money over a short period of time.
2. Secured loans
Secured loans are another alternative to payday loans, offering larger loan amounts and lower interest rates. With a secured loan, you borrow money against an asset you own, such as your home or car. This provides lenders with added security, reducing the risk for them.
3. Overdraft
An overdraft is a credit facility offered by many banks that allows you to spend more money than you have in your current account up to an agreed limit. Overdrafts usually charge interest on the amount you borrow, but the rates are typically lower than payday loan interest rates.
4. Personal loans
Personal loans are another alternative to payday loans, offering a more structured borrowing option for those in need of larger sums of money. Personal loans often have fixed interest rates, which means your monthly payments will stay the same throughout the loan term.
5. Guarantor loans
Guarantor loans allow you to borrow money with the help of a friend or family member who acts as a guarantor. The guarantor agrees to pay the loan if you are unable to repay it, providing reassurance to the lender.
6. Borrow from friends and family
You can ask your friends or family members for a loan or financial help instead of going for payday loans. Before taking their help, ensure clear terms and repayment plans to maintain healthy relationships.
FAQs – payday loans
What is a payday loan lender?
A payday loan lender is a company that provides short term loans for small amounts of money, typically intended to be paid back when you receive your next paycheck.
Are payday loans still available in the UK?
Yes, payday loans are still available in the UK. However, payday loan lenders are now more tightly regulated by the Financial Conduct Authority (FCA). The FCA ensures payday lenders follow responsible lending practices, such as capping interest rates and offering fair loan terms.
Can I get a payday loan with bad credit?
Yes, it’s possible to get a payday loan with bad credit, but it depends on a number of factors, including your credit history, income, employment history, and the criteria set by payday loan companies.
Are payday loans safe?
Payday loans are usually safe if you borrow from a legitimate UK lender regulated by the FCA. Be sure to review the loan agreement, including the APR, interest rate, repayment terms, and fees. However, they can impact your financial situation if you can’t repay on time.
Do payday loans ruin your credit?
Some lenders will consider a payday loan on your credit file negatively, however making your repayments on time and in full will help in mitigating this. If you miss a payment or roll over a loan, payday lenders may charge late fees and may report this to credit reference agencies, which could harm your credit rating.
How long do you get to pay off a payday loan?
Payday loans generally have a short repayment period, usually due by your next payday. However, your lender will determine the exact date. Some payday lenders may offer the option to extend the loan, often for a fee, but this will increase the total cost.