Payday Loans
Looking for a payday loan from a direct lender? Lending Stream offers a payday loans alternative: short term loans. We’re an FCA-authorised direct lender offering simple online applications, instant decisions, and money to bank in 90 seconds*, if approved. You can repay early or in up to 6 monthly instalments.
Not all applications will be approved for a loan. An offer of credit is subject to status and affordability checks.
What our customers are saying
Payday Loans? The Lending Stream Answer
Trusted
Rated Excellent on Trustpilot with 25,000+ reviews by customers across the UK.
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.
Is Lending Stream a Payday Loan Direct Lender?
While Lending Stream is a direct lender, we don’t offer payday loans. We offer short term loans. That can be a better option for some people. Payday loans are typically due in one lump sum by your next payday. This can be hard to manage. But our short term loans give you six months to repay in fixed instalments. Our loans are designed to offer more flexibility compared to traditional payday loans.
Representative 1271%APR
A Payday Loan Alternative – Direct Lender Short Term Loans from Lending Stream
At Lending Stream, we offer short term loans that work better than typical payday loans. As a direct lender, we put you in control. Instead of making the repayment in one go, we let you spread it over 6 months in equal instalments. This can make things easier to manage. There are clear advantages to choosing our loans over payday loans:
More time to repay
Repay your loan in equal instalments over six months, rather than all at once on your next payday.
Direct lender
Apply directly with Lending Stream. Expect quick decisions and full transparency.
Transparent costs
Know exactly what you’ll repay upfront. No hidden fees or unexpected charges.
Fast application and decision
Apply online 24/7. If approved, we’ll send the cash to your bank within 90 seconds*.
Regulated and responsible
Lending Stream is authorised and regulated by the Financial Conduct Authority (FCA), and we’re committed to responsible lending practices.
Lending Stream keeps things simple, fair, and fast.
Representative 1271%APR
Compare Lending Stream vs Payday Loan Direct Lenders
Want to compare Lending Stream with typical payday direct lenders? Here’s how we stack up:
| 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. |
Representative 1271%APR
What is a Payday Loan?
A payday loan is a type of short term loan that can help with urgent or unexpected costs. Often referred to as small loans, it is usually repaid in full on your next payday. Terms may vary depending on the lender. Many firms now allow you to apply for a payday loan online, making it easier to apply from home.
What to know about payday loans
- Short-term solution: Intended for one-off emergencies, not regular use.
- Fast repayment: Usually due on your next payday.
- Online process: Most lenders offer a simple online application.
Payday loans can be expensive. They often come with high interest rates, fees, and strict repayment terms. They are not designed for long-term borrowing or ongoing financial issues.
Use with care
- High costs: Interest and charges can increase the amount you owe.
- Risk of debt: Missing payments may lead to more borrowing or fees.
- Check affordability: Only borrow what you know you can repay.
Before applying for a payday loan, it may be worth exploring other options. Some short-term loans offer longer repayment periods and more manageable instalments.
Other options to consider
- Short-term loans with longer terms
- Credit unions or community lenders
- Free debt advice from independent charities
Make sure the lender is authorised and regulated by the Financial Conduct Authority (FCA). Read the terms and ensure the loan is affordable before applying.
Representative 1271%APR
Eligibility Criteria for Payday Loans
Whether you can get a payday loan depends on things like your age, where you live, and your income. At Lending Stream, we don’t offer payday loans, but you may still qualify for a short term online loan.
To be eligible 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 a payday loan in the UK, you’ll need to choose a lender and fill in an application form. Verify your income with the lender. If approved, the money will be sent directly to your bank account.
At Lending Stream, we offer an alternative to payday loans. You can apply directly through our website in just a few simple steps.
How to apply 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 individuals with a poor credit history too for bad credit loans.
Note: We perform a soft credit search when a user applies and do a hard credit search only if approved and you take the loan.
Representative 1271%APR
“Payday loans are typically used to address a short-term need for cash and usually help with urgent costs before your next pay date. They can be helpful in emergencies, but it’s important to only borrow what you can comfortably repay. Some people choose small loans that can be paid off over a few months. In the UK, these loans are heavily regulated by the FCA to ensure lenders act fairly and clearly explain fees, terms, and repayment conditions.”
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 payday loans when they need quick help before their next payday. 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?
While payday loans can offer fast access to cash, 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 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:
How Does the 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.
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, making 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 free, confidential help from trusted organisations.
Support available:
StepChange Debt Charity – Offers free debt advice and practical solutions tailored to your situation.
National Debtline – A free helpline offering independent debt advice over the phone or online.
Citizens Advice – Provides guidance on debt, benefits, and legal rights, with both local and online support available.
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
Choose the amount that you want to borrow from us.
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 to see what others say about the lender.
Customer Support
A good lender will have a 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 and 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 and 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
What is a Payday Loan Lender?
A payday loan lender is someone who gives small, short term loans. Usually, to be repaid on your next payday. Some are direct lenders, others are brokers. Check if the lender is authorised by the FCA before applying.
Are Payday Loans Still Available in the UK?
Yes, payday loans are still available in the UK. They are regulated by the Financial Conduct Authority (FCA). The FCA has set rules to protect borrowers, such as interest caps and fair lending practices.
Can I Get a Payday Loan with Bad Credit?
You might still get a payday loan if your credit is bad, but it depends. Lenders may consider your income, job, and payment history, not just your credit score. But approval isn’t guaranteed.
Do Payday Loans Affect 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 and 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 history.
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.
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.
Can I Get a Payday Loan with Very Bad Credit?
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 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, financial strain, or can even put you in a debt cycle.
Payday vs Short Term Loans – What is the Difference?
The key difference is in how and when you repay. Payday loans usually require full repayment by your next payday. Short term loans, like those from Lending Stream, let you spread repayments over several months. This makes short term loans easier to manage and better for budgeting.
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