{"id":27545,"date":"2026-04-27T07:36:40","date_gmt":"2026-04-27T07:36:40","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=27545"},"modified":"2026-04-27T07:36:41","modified_gmt":"2026-04-27T07:36:41","slug":"short-term-loans-vs-payday-loans","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/","title":{"rendered":"Short Term Loans vs Payday Loans"},"content":{"rendered":"\n<p>When you need cash fast, you might look at <strong>short term loans<\/strong> or <strong>payday loans<\/strong>. Both can help with urgent bills, but they work in different ways. This guide will help you understand the key points in <strong>short term loans vs payday loans<\/strong> so you can pick the right option for your needs.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2cf4f0d295\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2cf4f0d295\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#what_are_payday_loans\" >What Are Payday Loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#what_are_short_term_loans\" >What Are Short Term Loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#key_differences_loans_vs_payday_loans\" >Key Differences: Loans vs Payday Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#how_do_interest_rates_compare\" >How Do Interest Rates Compare?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#which_loan_is_right_for_you\" >Which Loan Is Right for You?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#can_you_get_these_loans_with_bad_credit\" >Can You Get These Loans with Bad Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#what_about_secured_loans\" >What About Secured Loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#how_to_apply_for_a_loan\" >How to Apply for a Loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#can_you_pay_off_your_loan_early\" >Can You Pay Off Your Loan Early?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#what_happens_if_you_miss_a_payment\" >What Happens If You Miss a Payment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#are_there_any_fees_to_watch_out_for\" >Are There Any Fees to Watch Out For?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#how_do_payday_loans_and_short_term_loans_affect_your_credit\" >How Do Payday Loans and Short Term Loans Affect Your Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#tips_for_choosing_the_right_lender\" >Tips for Choosing the Right Lender<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#alternatives_to_payday_and_short_term_loans\" >Alternatives to Payday and Short Term Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#final_thoughts_on_short_term_loans_vs_payday_loans\" >Final Thoughts on Short Term Loans vs Payday Loans<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#what_is_the_main_difference_between_short_term_loans_and_payday_loans\" >What is the main difference between short term loans and payday loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#can_i_get_a_payday_loan_with_bad_credit\" >Can I get a payday loan with bad credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#are_short_term_loans_cheaper_than_payday_loans\" >Are short term loans cheaper than payday loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#how_quickly_can_i_get_the_money\" >How quickly can I get the money?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#what_happens_if_i_cannot_pay_back_my_loan_on_time\" >What happens if I cannot pay back my loan on time?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/short-term-loans-vs-payday-loans\/#can_i_pay_off_my_loan_early_to_save_on_interest\" >Can I pay off my loan early to save on interest?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_are_payday_loans\"><\/span><strong>What Are Payday Loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"399\" src=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Payday-Loans.jpg\" alt=\"Understanding Payday Loans\" class=\"wp-image-27548\" srcset=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Payday-Loans.jpg 532w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Payday-Loans-300x225.jpg 300w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Payday-Loans-80x60.jpg 80w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Payday-Loans-265x198.jpg 265w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p><strong>Payday loans<\/strong> are small, quick cash <strong>loans<\/strong>. You get the money fast and repay it on your <strong>next payday<\/strong>. Most <strong>payday loans<\/strong> last just a few weeks. The amount is often between \u00a3100 and \u00a31,000.<\/p>\n\n\n\n<p><strong>Payday lenders<\/strong> can approve your request quickly. You need a UK <strong>bank account<\/strong> and proof of income. Many <strong>payday loan companies<\/strong> do a <strong>credit check<\/strong>, but some will consider people even with <strong>bad credit<\/strong>.<\/p>\n\n\n\n<p>You repay the full sum in one go. This means the payment can be large. If you cannot pay on time, fees can add up. This can <strong>cause you serious money<\/strong> problems if you are not careful.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_are_short_term_loans\"><\/span><strong>What Are Short Term Loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"399\" src=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Short-Term-Loans.jpg\" alt=\"Understanding Short Term Loans\" class=\"wp-image-27547\" srcset=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Short-Term-Loans.jpg 532w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Short-Term-Loans-300x225.jpg 300w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Short-Term-Loans-80x60.jpg 80w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Understanding-Short-Term-Loans-265x198.jpg 265w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p><strong>Short term loans<\/strong> also give you cash quickly, but you repay over a <strong>longer period<\/strong>. The <strong>loan term<\/strong> can be from one month to 12 months. This makes payments smaller and easier to manage.<\/p>\n\n\n\n<p>You can borrow more money with a <strong>short term loan<\/strong> than with most <strong>payday loans<\/strong>. <strong>Short term lenders<\/strong> may offer up to \u00a31,500 or more. You still need a <strong>bank account<\/strong> and some proof of income.<\/p>\n\n\n\n<p>A <strong>repayment schedule<\/strong> spreads the cost. This can help you budget better. You pay a bit each month instead of one big sum. <strong>Most lenders<\/strong> will do a credit check, but many will consider people with a <strong>poor credit score<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"key_differences_loans_vs_payday_loans\"><\/span><strong>Key Differences: Loans vs Payday Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The main split in the <strong>loans vs<\/strong> payday loans debate is how you repay. <strong>Payday loans<\/strong> need full payment in a <strong>short period<\/strong>. <strong>Short term loans<\/strong> let you pay over a <strong>few months<\/strong>.<\/p>\n\n\n\n<p><strong>Interest rates<\/strong> can be high for both. But the cost depends on how long you borrow. A <strong>payday loan<\/strong> might cost less in total because you repay it fast. A <strong>short term loan<\/strong> might have <strong>more interest<\/strong> over time, but smaller payments each month.<\/p>\n\n\n\n<p>Here is a quick look at the main points:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Feature<\/strong><\/td><td><strong>Payday Loans<\/strong><\/td><td><strong>Short Term Loans<\/strong><\/td><\/tr><tr><td><strong>Loan Term<\/strong><\/td><td>Few weeks<\/td><td>1 to 12 months<\/td><\/tr><tr><td><strong>Repayment<\/strong><\/td><td>One lump sum<\/td><td>Monthly payments<\/td><\/tr><tr><td><strong>Loan Amount<\/strong><\/td><td>\u00a3100 to \u00a31,000<\/td><td>\u00a3100 to \u00a31,500+<\/td><\/tr><tr><td><strong>Credit Check<\/strong><\/td><td>Yes<\/td><td>Yes<\/td><\/tr><tr><td><strong>Best For<\/strong><\/td><td>Very quick cash needs<\/td><td>Spread out payments<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_do_interest_rates_compare\"><\/span><strong>How Do Interest Rates Compare?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both <strong>payday loans<\/strong> and <strong>short term loans<\/strong> can <strong>charge interest<\/strong> at high rates. The <strong>interest rate<\/strong> is often shown as an APR. This can look very high for short <strong>loans<\/strong> because APR is based on a year.<\/p>\n\n\n\n<p>A <strong>payday loan<\/strong> might have a high APR, but you only borrow for weeks. So the actual cost might be lower than you think. A <strong>short term loan<\/strong> over a <strong>longer period<\/strong> will cost more in total, but each payment is smaller.<\/p>\n\n\n\n<p>Always check the total cost. Ask how much you will <strong>pay back<\/strong> in full. This helps you see the real price of the <strong>loan<\/strong>. Some lenders show this clearly on their sites.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"which_loan_is_right_for_you\"><\/span><strong>Which Loan Is Right for You?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Pick a <strong>payday loan<\/strong> if you need a <strong>small loan<\/strong> and can repay it fast. This works well if you have a big bill due before your next pay. Make sure you can afford the full <strong>repayment amount<\/strong> on time.<\/p>\n\n\n\n<p>Choose a <strong>short term loan<\/strong> if you want to spread the cost. Consider this if you need a larger sum or cannot pay it all at once. <strong>Monthly repayments<\/strong> may be easier to fit into your budget.<\/p>\n\n\n\n<p>Think about your situation and your income. Do not borrow money that you cannot afford to <strong>pay back<\/strong>. Both <strong>loan products<\/strong> can help if used wisely.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"can_you_get_these_loans_with_bad_credit\"><\/span><strong>Can You Get These Loans with Bad Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes. Many <strong>payday loan lenders<\/strong> and <strong>short term lenders<\/strong> will consider people with <strong>bad credit<\/strong>. They look at your income and <strong>bank account<\/strong> history more than your <strong>credit score<\/strong>.<\/p>\n\n\n\n<p>A credit check is still done. This shows up on your <strong>credit report<\/strong>. But <strong>other lenders<\/strong> may still approve you even if your score is low. An offer of credit is subject to status and affordability checks.<\/p>\n\n\n\n<p>Be careful with <strong>multiple loans<\/strong>. Taking out too many can make problems worse. It can also hurt your credit score over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_about_secured_loans\"><\/span><strong>What About Secured Loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A <strong>secured loan<\/strong> needs you to use something you own as security against the loan. This could be a car. As <strong>Secured loans<\/strong> are different from <strong>payday loans<\/strong> and <strong>short term loans<\/strong>. They often have lower rates because the lender has less risk.<\/p>\n\n\n\n<p>But if you cannot <strong>pay back<\/strong> a <strong>secured loan<\/strong>, you could lose your asset. <strong>Payday loans<\/strong> and <strong>short term loans<\/strong> are unsecured. This means you do not risk your things, but the rate is higher.<\/p>\n\n\n\n<p>Unsecured loans are typically used for quick cash over a <strong>short period<\/strong>. <strong>Secured loans<\/strong> are generally used for larger sums borrowed over many years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_to_apply_for_a_loan\"><\/span><strong>How to Apply for a Loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Applying is simple. Most <strong>payday loan companies<\/strong> and <strong>short term lenders<\/strong> let you apply online. You fill in a form with your details and account information.<\/p>\n\n\n\n<p>You will need:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Proof of income<\/li>\n\n\n\n<li>A UK bank account<\/li>\n\n\n\n<li>Your address and contact details<\/li>\n\n\n\n<li>ID such as a driving licence<\/li>\n<\/ul>\n\n\n\n<p>The lender will do a credit check. They will also see if you can afford the loan. If approved, the money can reach your account the same day.<\/p>\n\n\n\n<p>Always check the terms before you sign.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"can_you_pay_off_your_loan_early\"><\/span><strong>Can You Pay Off Your Loan Early?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes, you can often settle a <strong>loan<\/strong> early. This could save you money on <strong>interest charges<\/strong>. It reduces the total interest you pay. This is true for both <strong>payday loans<\/strong> and <strong>short term loans<\/strong>.<\/p>\n\n\n\n<p>Check with your lender first. Some may charge a fee.<\/p>\n\n\n\n<p>If you took out the <strong>original loan<\/strong> and now have funds, contact your lender. Ask how to settle the balance. This can free you from debt faster.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_happens_if_you_miss_a_payment\"><\/span><strong>What Happens If You Miss a Payment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Missing a payment can <strong>cause you serious money<\/strong> trouble. You could face <strong>late repayment<\/strong> fees. These add to your debt. Your credit score may also drop.<\/p>\n\n\n\n<p>If you think you will miss a payment, contact your lender right away. <strong>Most lenders<\/strong> will try to help. They may offer a new repayment plan or give you more time.<\/p>\n\n\n\n<p>Do not ignore the problem. Issues get worse if you do nothing. Talk to your lender or seek <strong>free service<\/strong> advice from a debt charity. You can get free, impartial advice from MoneyHelper at <a href=\"http:\/\/moneyhelper.org.uk\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>moneyhelper.org.uk<\/strong><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"are_there_any_fees_to_watch_out_for\"><\/span><strong>Are There Any Fees to Watch Out For?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Yes. Both <strong>payday loans<\/strong> and <strong>short term loans<\/strong> can have fees. Common ones include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Late repayment<\/strong> fees if you miss a payment<\/li>\n\n\n\n<li><strong>Interest charges<\/strong> on the amount borrowed<\/li>\n<\/ul>\n\n\n\n<p>Always read the terms. Ask about all costs before you sign.<\/p>\n\n\n\n<p>Check if there is a fee to settle the <strong>loan<\/strong> early. Some lenders let you do this for free. This means you pay <strong>less interest<\/strong> over time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_do_payday_loans_and_short_term_loans_affect_your_credit\"><\/span><strong>How Do Payday Loans and Short Term Loans Affect Your Credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both types of <strong>loan<\/strong> show up on your credit report. If you <strong>pay back<\/strong> on time, this could help improve your credit score. It shows you can manage debt.<\/p>\n\n\n\n<p>But if you miss payments, your score will drop. <strong>Late repayment<\/strong> stays on your record for years. This can make it hard to get <strong>other lenders<\/strong> to approve you later.<\/p>\n\n\n\n<p>Taking out many <strong>loans<\/strong> at once can also hurt your credit score. Lenders may think you rely too much on credit. Keep your borrowing low and always <strong>pay back<\/strong> on time. You can learn more about <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/do-payday-loans-affect-your-credit-score\/\" target=\"_blank\" rel=\"noreferrer noopener\">how payday loans affect your credit score<\/a> in our detailed guide.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"tips_for_choosing_the_right_lender\"><\/span><strong>Tips for Choosing the Right Lender<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Not all <strong>payday lenders<\/strong> and <strong>short term lenders<\/strong> are the same. Here are some tips:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Check if they are FCA authorised<\/li>\n\n\n\n<li>Read reviews from other customers<\/li>\n\n\n\n<li>Compare rates and fees<\/li>\n\n\n\n<li>Look for clear terms<\/li>\n<\/ul>\n\n\n\n<p>Avoid lenders who promise &#8220;no credit check&#8221; <strong>loans<\/strong>. All responsible lenders must check if you can afford to repay. If a deal sounds too good, it might be a scam. Learn <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/\" target=\"_blank\" rel=\"noreferrer noopener\">how to find out if a loan company is legit<\/a> before you apply.<\/p>\n\n\n\n<p>Use <strong>online lenders<\/strong> with a good track record. Check their website for contact details and clear terms. A good lender will answer your questions before you apply.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"alternatives_to_payday_and_short_term_loans\"><\/span><strong>Alternatives to Payday and Short Term Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"532\" height=\"399\" src=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Exploring-Other-Loan-Options.jpg\" alt=\"Exploring Other Loan Options\" class=\"wp-image-27549\" srcset=\"https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Exploring-Other-Loan-Options.jpg 532w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Exploring-Other-Loan-Options-300x225.jpg 300w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Exploring-Other-Loan-Options-80x60.jpg 80w, https:\/\/www.lendingstream.co.uk\/blog\/wp-content\/uploads\/2023\/08\/Exploring-Other-Loan-Options-265x198.jpg 265w\" sizes=\"(max-width: 532px) 100vw, 532px\" \/><\/figure>\n\n\n\n<p>Before you take out a <strong>payday loan<\/strong> or <strong>short term loan<\/strong>, think about other options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ask family or friends to lend you money. Always agree a repayment plan before borrowing.<\/li>\n\n\n\n<li>Use a credit union for lower rates<\/li>\n\n\n\n<li>Check if you can get an overdraft on your account<\/li>\n\n\n\n<li>Sell items you no longer need<\/li>\n\n\n\n<li>Look for local grants or help schemes<\/li>\n<\/ul>\n\n\n\n<p>These can be other ways to get cash. They may work out cheaper overall. If you have ongoing issues, speak to a free debt advice service. They can help you make a plan. Our guide on <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-get-out-of-debt\/\" target=\"_blank\" rel=\"noreferrer noopener\">how to get out of debt<\/a> offers practical steps.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"final_thoughts_on_short_term_loans_vs_payday_loans\"><\/span><strong>Final Thoughts on Short Term Loans vs Payday Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Both <strong>short term loans<\/strong> and <strong>payday loans<\/strong> can help when you need cash fast. The best choice depends on how much you need and how quickly you can repay.<\/p>\n\n\n\n<p><strong>Payday loans<\/strong> are good for small sums you can repay in a <strong>short period<\/strong>. <strong>Short term loans<\/strong> may suit those who want to spread the cost over a <strong>few months<\/strong>. Both have high rates, so only borrow what you can afford.<\/p>\n\n\n\n<p>Always check the cost and read the terms. Make sure you understand the <strong>repayment schedule <\/strong>before you sign. If you are unsure, seek advice. Responsible borrowing can help you through a tough time without making things worse.<\/p>\n\n\n\n<p>For more help, visit our guides on <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">advantages and disadvantages of payday loans<\/a> and <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-short-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">advantages and disadvantages of short term loans<\/a>.<\/p>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what_is_the_main_difference_between_short_term_loans_and_payday_loans\"><\/span><strong>What is the main difference between short term loans and payday loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The main difference is the <strong>repayment schedule<\/strong>. <strong>Payday loans<\/strong> need full payment in one go, often within weeks. <strong>Short term loans<\/strong> let you <strong>pay back<\/strong> over a <strong>few months<\/strong> with smaller payments. This makes <strong>short term loans<\/strong> easier to manage for many people.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_get_a_payday_loan_with_bad_credit\"><\/span><strong>Can I get a payday loan with bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, many lenders accept people with <strong>bad credit<\/strong>. They focus more on your income and account than your credit score. However, a credit check is still done. An offer of credit is subject to status and affordability checks.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-3\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"are_short_term_loans_cheaper_than_payday_loans\"><\/span><strong>Are short term loans cheaper than payday loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Not always. <strong>Short term loans<\/strong> may cost more in total because you borrow for longer. But <strong>monthly repayments<\/strong> are smaller. <strong>Payday loans<\/strong> may have <strong>less interest<\/strong> overall but need a large one-off payment. Compare the cost before you choose.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-4\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"how_quickly_can_i_get_the_money\"><\/span><strong>How quickly can I get the money?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Both <strong>payday loans<\/strong> and <strong>short term loans<\/strong> can be fast. Many lenders approve your <strong>loan application<\/strong> quickly. If approved, the money can reach your account the same day. Speed depends on the lender and when you apply.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-5\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"what_happens_if_i_cannot_pay_back_my_loan_on_time\"><\/span><strong>What happens if I cannot pay back my loan on time?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>If you miss a payment, you could face fees. Your credit score may drop. Contact your lender as soon as you know you will struggle. <strong>Most lenders<\/strong> will try to help with a new repayment plan or extra time.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-6\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"can_i_pay_off_my_loan_early_to_save_on_interest\"><\/span><strong>Can I pay off my loan early to save on interest?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, you can often settle a <strong>loan<\/strong> early. This can save you money on <strong>interest charges<\/strong>. Check with your lender first as some may charge a fee. Lenders may let you settle early for free, which helps you clear debt faster.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Disclaimer:<\/strong> The information given above is provided for information purpose only. This is not financial advice.<\/p>\n\n\n\n<p><strong>Related guides:<\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/payday-loans-vs-instalment-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Payday Loans vs Instalment Loans<\/a><\/strong><\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/advantages-and-disadvantages-of-payday-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Advantages and Disadvantages of Payday Loans<\/a><\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-get-out-of-payday-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>How To Get Out of Payday Loans<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-many-payday-loans-can-you-have-at-once\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>How Many Payday Loans Can You Have at Once<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/are-short-term-loans-good-for-your-credit-rating\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Are Short Term Loans Good for Your Credit Rating<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you need cash fast, you might look at short term loans or payday loans. Both can help with urgent bills, but they work in different ways. This guide will help you understand the key points in short term loans vs payday loans so you can pick the right option for your needs. What Are [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":27550,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-27545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27545"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=27545"}],"version-history":[{"count":3,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27545\/revisions"}],"predecessor-version":[{"id":28189,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27545\/revisions\/28189"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/27550"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=27545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=27545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=27545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}