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If you need to borrow a loan, Forces Compare can help. Explore a range of direct lenders with the option of borrowing from £50 to £2,500, with repayment periods of 3 to 24 months.
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Why Apply for Payday Loans Online with Forces Compare?
Forces Compare works with a number of payday loan lenders and alternatives to help you borrow the money you need until your next payday.
We set up as a financial resource to help people in the armed forces, but having access to low rates and a full suite of different lenders has made us popular with soldiers and everyday civilians too – so everyone can apply.
Our entire website is free to use and always will be. When applying through Forces Compare, you will receive a provisional quote and instant decision on the screen.
With no fees charged, there is no obligation and you can proceed on your own terms. If successful, you can get a payday loan within 1 hour of approval or sometimes 15 minutes.
What is a Payday Loan?
A payday loan refers to borrowing a few hundred pounds upfront and then repaying on your next pay date from work, otherwise known as your ‘payday.’
There are around 3 million people that use payday loans in the UK every year and if you have a pressing bill and payday is too far away, this can be a useful financial option to tide you over.
What Are Payday Loans Used For?
Payday loans are commonly used for pay for emergency purposes and any pressing household expenses such as rent, bills, car repairs, broken boilers, utility bills and more.
Payday loans are designed to be quick and repaid over 1 to 3 months (although now you can extend these into 6 month or 12 month loans).
You will receive the money upfront ranging from £100 to £2,500. You can use this to pay off any pressing bills or other emergency fees, and can make the repayments in equal monthly instalments over several months. Simple.
Using payday loans for emergencies and short-term shortfalls of cash is their main purpose – and you should avoid being reliant on payday lenders and using them long-term
What is The Eligibility Criteria for Applying with Forces Compare?
- Over 18 years of age.
- UK resident (full-time).
- Able to afford monthly repayments.
- Valid UK bank account.
- Valid UK mobile number and email address.
- No recent CCJs, IVAs or bankruptcy.
What is the Cost of Payday Loans?
Payday loans are typically pricier than your average personal loans or unsecured loans – and this is to reflect the short-term nature of them and the fact that they are sometimes used by people with bad credit histories.
According to regulatory guidelines, the cost of payday loans is capped at 0.8% per day, equal to £24 per £100 – so you have peace of mind knowing that if you borrow from a payday lender, the amount you pay will not exceed this.
You should also be aware that failing to pay on time can warrant a one-off default fee for each missed payment – and this is capped at £15.
Representative Example: If you borrow £550 over 6 months at a flat rate of 207.6% per annum (fixed) with a representative 1013.3% APR you will make 6 monthly payments of £186.82, repaying £1120.90 in total. Loan term lengths from 1 to 60 months.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
How Do Repayments Work for Payday Loans?
The repayment for a payday loan is scheduled and arranged on a specific day that you select. When you apply, you can specify with the lender which day you would like collections to be on and this is typically your payday or the day after, allowing funds to fully enter your account.
For most people, their payday is the last working day of the month or the last Friday. For some people it is a specific date such as the 20th or 25th, or they get paid on a four-weekly cycle.
Whilst some payday lenders vary, the repayments are usually made up of equal instalments. So if you have a 3-month loan and are repaying a total interest of £300, you will typically pay £100 in month one, month two and month three.
Most lenders give you the option to repay early at any point and you will usually save money by doing so, since you are accruing up less daily interest. Similarly, the longer your loan, the more daily interest will build up and the more you will pay overall.
Can I Get a Payday Loan with Bad Credit?
Yes, you can apply for bad credit payday loans, even if you have had some defaults in the past, or a CCJ.
To be eligible, you will need to prove that you have a regular income or salary going into your bank account each month and can afford to make repayments on time. You may be required to back this up with a copy of your payslip or bank statement.
Provided that your credit score is getting better and not worse – and you are not using a payday loan to pay off other loans, you can certainly be eligible.
In some cases, the lender may adjust or lower the amount you have requested to borrow or offered a longer period of time to give you more breathing space to repay.
How Do I Get a Payday Loan Online with Forces Compare?
The application for a payday loan is fully online and can be completed in less than 5 minutes. Simply click on the ‘check eligibility’ button below and begin your search for payday loans with Forces Compare.
You will be required to enter some basic details including your name, age, address, how much you want to borrow and how long for. You will usually receive an instant decision on the screen and subject to further checks, your application can be approved and funds transferred to your bank account within 1 hour or the same day you apply.