Payday Loans
Looking for payday loans? Lending Stream offers a payday loans alternative. We offer short term loans that you can repay in fixed monthly instalments. We’re an FCA-authorised direct lender. Apply online in minutes. Check your eligibility with a soft credit check that will not affect your credit score (unless you take out a loan). Get instant decisions, and money to bank in 90 seconds*, if approved.
Not all applications will be approved for a loan. An offer of credit is subject to status and affordability checks.
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Payday Loans? The Lending Stream Answer
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Direct Lender
Lending Stream is a FCA authorised and regulated direct lender, offering short-term loans without any hidden fees.
No early repayment fees
Repay in 6 monthly instalments. We don’t charge for early repayment.
Fast
Apply online 24/7 with decisions in seconds. If approved, cash is sent to your bank in 90 seconds.*
Representative 1271%APR
Lending Stream is FCA Authorised
Lending Stream has been helping customers in the UK since 2008. Since then, we have helped over half a million people with their financial needs by lending over 3.5 million short term loans. We’re an FCA-authorised and regulated direct lender, with authorisation number 689378. Responsible lending is our biggest priority, and we want to ensure our customers’ experience is great.
We believe in ensuring that you are fully informed about the costs, fees, and repayment terms of our loans. To achieve this, we have taken great care to present all charges, including interest rates and fees, upfront. No hidden costs or unwelcome surprises – everything is clear and easy to understand.
Payday Loans from a Direct Lender – What You Need to Know
When you look for payday loans from direct lenders in the UK, check if the lender is FCA-authorised. Make sure they show all costs clearly. These loans are often due in one lump sum on your next payday. This can put pressure on your budget. Only borrow what you need and what you can repay on time.
At Lending Stream, we do not offer payday loans. We offer short term loans with monthly instalments. This gives you more time to repay. You can apply online in minutes and get a fast decision.
What is a Payday Loan?
A payday loan is a type of short-term credit that is repaid in full on your next payday. These loans are often used for urgent or unexpected costs. UK payday loan lenders may offer quick decisions, but the repayment period is short. The full amount is due at once. This can make budgeting harder if your income changes or if other bills come up.
All payday lenders must be authorised by the FCA. It is important to check the terms, costs, and repayment date before applying. They are not designed for long-term borrowing or ongoing financial issues.
Is Lending Stream a Payday Loan Direct Lender?
Lending Stream is a direct lender, but we do not offer payday loans. We offer short term loans. That can be an alternative option for some people. Payday loans are repaid in one lump sum, usually on your next payday. This short repayment time can be hard to manage.
As a direct lender, we assess your application ourselves and show all costs upfront. Instead of payday loans, we offer loans with fixed monthly instalments. This means you repay the loan over a longer period, with fixed amounts each month. It can give you more time to plan your budget and avoid the pressure of a single large repayment.
Representative 1271%APR
Compare Lending Stream vs Payday Loan Direct Lenders
Choosing the right direct lender makes a big difference. Lending Stream offers a payday loan alternative. We keep things simple, fair, and transparent. Here is a quick comparison of Lending Stream vs Other payday loans direct Lenders:
| Feature | Lending Stream | Payday Direct Lenders |
|---|---|---|
| Loan Repayment | Up to 6 months in monthly instalments. | Full repayment by next payday. |
| Loan Amount | £50 – £800 for new customers and £100 – £1500 for returning customers. | Varies between lenders. Make sure to do your research. |
| Credit Checks | We perform credit checks and affordability assessments. | Varies between lenders. Some may do, some may not. |
| FCA Authorised | We are an FCA regulated and authorised direct lender in the UK. | You can check if a lender if FCA authorised by checking the Financial Services Register. |
| Loan Application Time | Apply online 24/7. We give instant decisions. | It varies. Some lenders may require phone or in-person applications. |
| Payout Speed | We send the cash to bank within 90 seconds*, if approved. | It varies between lenders. |
| Repayment Flexibility | Early repayment allowed with no extra fees. | Usually none. Need to repay in full on your next payday. |
Compared to payday direct lenders, Lending Stream gives borrowers more time to repay.
Representative 1271%APR
Eligibility Criteria for Payday Loans in the UK
Whether you can get a payday loan depends on various factors. At Lending Stream, we don’t offer payday loans. You may still qualify for a short term online loan.
To be eligible for a loan with us, you should:
- Have a valid debit card
- Have an active UK bank account
- Be a UK resident
- Be at least 18 years old
- Be in regular employment with a monthly income of at least £400
We might ask you to show proof of your income when you apply. We do this to see if you can afford the loan repayments. People with bad credit history will also be eligible to apply.
Representative 1271%APR
How to Apply for a Payday Loan Online?
To apply for payday loans online in the UK, you’ll need to choose an FCA authorised direct lender. Once done, follow the online application process. Fill in the application form. Verify your income with the lender. If approved, the money will be sent directly to your bank account quickly.
At Lending Stream, we offer an alternative to payday loans. You can apply for a loan through our website in just a few simple steps.
To apply for a loan with us:
Choose the amount that you want to borrow from us
Fill in all your personal details
Provide us with your employment, salary, expenses, and banking details
Once we get your application, we’ll run a credit check. We’ll also check if you can manage the repayments. 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 people with a poor credit history for bad credit loans.
Note: We perform a soft credit search when a user applies. We do a hard credit search only if approved, and you take the loan.
Representative 1271%APR
“Payday loans are used when someone needs cash fast. They can help with urgent costs before your next pay date. They may be useful in an emergency, but you should only borrow what you can repay with ease. Some people choose small loans that they can repay over a few months. In the UK, all lenders must follow FCA rules. These rules make sure lenders act fairly and show all fees, terms, and repayment details clearly.”
Andrew Wayland
Loan Expert – Lending Stream
What Can I Use a Payday Loan for?
Payday loans are often used to cover urgent or unexpected expenses when money is tight. They’re not designed for long-term borrowing, but rather for short-term financial gaps. People usually apply for these loans when they need quick help before their next payday. Always ensure that you can repay it on time to avoid additional fees and financial stress.
Common reasons people use payday loans include:
- Emergency car or home repairs
- Covering unexpected bills
- Temporary cash flow problems or financial assistance
- Unexpected funeral expenses
Thinking about payday loans? A short term loan might be a more flexible option. Need money fast? You could consider applying for an emergency loan with Lending Stream today.
Representative 1271%APR
When Should You Avoid Payday Loans?
Payday loans can offer fast access to cash. But, they aren’t always the right choice for every situation. You should generally avoid them 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.
These loans should be used for emergencies. Only when no other options are available.
How Much Can I Borrow With a Payday Loan?
The amount you can borrow with a payday loan depends on your income, credit history, and the lender’s terms. Most payday lenders offer loans which are typically small in value. The amount you’re offered will be based on what the lender believes you can repay by your next payday.
Things that affect how much you can borrow:
- Your income – How much you earn regularly
- Your credit history – Your past borrowing and repayment record
- Affordability – Whether the repayments fit your budget
At Lending Stream, the amount you can borrow depends on whether you’re a new or returning customer:
- New customers: Can borrow between £50 and £800
- Existing customers: May borrow between £100 and £1,500
How Does the Payday Loan Repayment Work?
Repayment for an online payday loan is usually made in one single payment, often on your next payday. Lenders will explain your repayment date and amount when your loan is approved. It’s important to understand the repayment terms. Make sure you can repay on time to avoid extra charges or money worries. Late repayments can cause you serious money problems.
At Lending Stream, we offer short term loans with a repayment period of 6 months. Instead of one lump sum, you can repay in fixed monthly instalments. This makes it easier to budget. We are flexible, if you want to pay your loan earlier you can, with no additional charges.
What makes our loans different:
- Repay in fixed monthly instalments
- No early repayment fees – Pay off your loan early with no extra charges
Having trouble keeping up with your loan? You can get confidential help from trusted organisations. They offer money advice services for free.
Support available:
StepChange Debt Charity – Free debt advice and practical solutions for managing debt.
National Debtline – Independent debt helps by phone or online.
Citizens Advice – Guidance on debt, benefits, and rights with local and online services.
How to Check if a Payday Loan Direct Lender is Legitimate?
If you want to borrow money, it’s important to make sure the lender is safe and honest. Here are some simple checks you can do:
FCA Authorisation
The lender should be authorised by the Financial Conduct Authority (FCA). You can check this on the FCA’s register.
Clear Loan Details
A good lender will clearly show how much you’ll borrow, when you must repay it, and any fees involved.
No Hidden Charges
Watch out for lenders that don’t tell you all the costs upfront. A trustworthy lender will always show the full cost of the loan.
Check Reviews
Look at customer reviews online. See what others say about the lender.
Customer Support
A good lender will have a customer support team. You can contact if you need help or have questions.
By following these tips, you can protect yourself from potential scams or loan sharks. This can help you find a reliable payday loan provider.
Alternatives to Payday Loans
1. Short term loans
These loans let you borrow a small amount over a short period. Unlike payday loans, you can repay in monthly instalments, not all at once.
2. Secured loans
These are loans backed by something you own, like a car or house. Because the lender takes less risk, you might get a lower interest rate or be allowed to borrow more. But if you miss payments, the lender may take your asset.
3. Credit Unions
Credit unions are not-for-profit groups that lend to their members. They usually offer low interest rates and no hidden fees. While it may take longer to get approved, they are a safe and local option.
4. Personal loans
You can get these from banks, building societies, or online lenders. You borrow a set amount and repay it in fixed monthly payments. These loans can be good for planned costs. They often have better rates for people with a good credit score.
5. Guarantor loans
These loans require a friend or family member to act as a guarantor. This means they agree to repay the loan if you can’t. It helps give the lender more confidence in lending to you.
6. Borrow from friends and family
If someone you trust is willing to help, this can be a low-cost way to deal with short-term money issues. Just make sure to agree on how much you’ll borrow and when you’ll pay it back to avoid problems.
FAQs – Payday Loans
Are Payday Loans Still Available in the UK?
Yes, payday loans are still available in the UK. They are regulated by the FCA, and lenders must explain all costs clearly. Payday loans do not offer flexible repayment terms, as they are due in one lump sum. Lending decisions are based on your income and credit profile.
Do Payday Loans Affect Your Credit Score?
Yes, payday loans can affect your credit score. Lenders typically report your borrowing activity to credit reference agencies. Failing to repay on time can negatively impact your credit file. This can make future borrowing more difficult. On the other hand, repaying a loan on time and in full can have a positive effect on your credit report.
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, monthly repayments, repayment terms, and fees. However, they can impact your financial situation if you can’t repay on time.
Can I Get a Payday Loan with Very Bad Credit?
Yes, it’s possible to get a payday loan with very bad credit. But approval depends on the lender. Some lenders may consider your income and recent payment behaviour, not just your credit score. Responsible lenders, including Lending Stream, carry out credit and affordability checks. This is to ensure the loan is suitable and can be repaid.
Are Payday Loans Bad?
Payday loans aren’t bad by definition, but they can become a problem if misused. The negatives are their short repayment time and high interest rates. If not repaid on time, it can lead to more debt. Especially if you are already facing unexpected financial difficulties.
Why Payday Loans Are High-Cost Credit?
Payday loans are classed as high-cost credit because they have high interest rates and fees than most other loans. They are meant for short-term use and must be repaid fast. This can raise the total cost. The FCA sets rules to limit charges, but payday loans are still more expensive than other credit options.
Are Payday Loans Still Legal in the UK?
Yes, payday loans are still legal in the UK. They are regulated by the Financial Conduct Authority (FCA). The FCA sets rules to protect borrowers, including interest caps and clear cost limits.
Only use payday loans from FCA-authorised lenders. This helps protect you from unsafe or unregulated firms.
What are the FCA Rules for Payday Loans in the UK?
The FCA sets strict rules for payday loans in the UK. Lenders must run credit and affordability checks, show all costs upfront, and follow price caps. The maximum default fees are capped at £15. Only FCA-authorised lenders can offer payday loans. Groups like the consumer credit trade association (CCTA) also share guidance for safe lending. Here are the complete guidelines by the FCA for payday lenders.
Can Credit Brokers List Payday Lenders?
Yes, credit brokers can list payday lenders and show different loan options. They do not lend money themselves. They connect you with lenders who may give you a loan offer. Brokers compare many lenders in one place. But, you should still check fees and make sure the lender is FCA-authorised.
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