Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

Payday Loans in London: Get Cash Online Within the Same Day

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. Multi Month Loans is a licensed credit broker not a lender. Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservce.org.uk

Payday Loans in London: All You Need to Know

Get the cash sent to your account in 15 mins!*

Representative 1013.30% APR

Payday Loans Explained

Payday Loans Explained

How Do Payday Loans Work?

Top Tips for Getting a Payday Loan

How Do I Get a Payday Loan?

Payday Loan Eligibility

Am I Eligible for a Payday Loan?

Find Yourself The Best Rates

How to Attract A Suitable Deal

Have a Hassle-Free Loan

How do I Repay Without Any Problems?

Your Next Steps to Take

What should I Consider Before I Apply?

Payday Loans Explained

How Do Payday Loans Work?

Considering taking out a payday loan in London help you stretch your budget until payday? Before you go ahead and apply for a payday loan with Multi Month Loans today it’s important to understand both the pros and cons of this type of finance.

In this guide, you will be able to find the answers to such frequently asked questions, such as;

What is a Payday Loan and how do they work?

Payday loans are unsecured lines of credit that are borrowed for a short-term period, usually until your next payday although this term can be extended.

Once your loan application has been approved, your funds will be deposited directly into your bank account. At the end of your loan term, you must repay your loan in addition to any interest in full.

These loans are designed purely for short-term use only and therefore should only be used in one-off circumstances as they are an unsuitable option for repeated lending, and if used this way then they can be expensive..

How do Payday Loans work?

Traditionally, payday loans were a form of credit that would help you to bridge the gap until your next payday; these loans are also commonly referred to as ‘quick loans’.

Now, payday loan lenders are able to offer loans payday loans with more extended loan terms. Providing applicants with the choice to pay back their loan when they need to, either in full or in instalments over the course of several months.

In some cases, applicants can receive their loan within just 24 hours after having their application approved, which is also known as a same day loan.

Unfortunately, financial emergencies happen all the time – whether it’s an urgent car repair or home repair – but luckily enough they can be solved quickly and easily with instant payday loans.

How long can I borrow a payday loan for?

These loans can last as little as a few days, or they can be extended over a number of months. At Multi Month Loans, we offer our applicants repayment periods of between 1 to 24 months, depending on your affordability and the amount you need to borrow.

Whether you decide to take out a loan until your next payday, for 6-months or even 12-months, is entirely up to you and what your needs are. However, it is worth noting that these loans are not designed to be used for long term periods and if done so could account for affordability and money issues in the future.

Warning – Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

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Are Payday Loans Safe?

In 2014, when the Office of Fair Trading, handed regulation of Consumer Credit over to the Financial Conduct Authority, who enforced rules and regulations onto payday lenders to ensure they followed ethical and responsible lending practices. Which provided protection against extortionate rates and unaffordable loans for all customers.

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Before these regulations were put in place, customers found themselves accruing large debts, and repeatedly took out loan after loan to cover the costs of their previous. Nowadays, all payday loans are regulated by the FCA and are some of the most regulated forms of credit available on the market.

Today all responsible lenders of short-term finance must ensure that they:

  • Cap total loan costs to no more than 100%.
  • Cap defaulting fees to £15.
  • Cap interest rates at 0.8% per day.
  • Issue risk warnings on their websites about borrowing payday loans.
  • Clearly state if their loans are a form of short-term credit and should not be used for anything else except for short term financial emergencies.
  • Carry out adequate affordability checks on all of their customers to ensure that they can easily afford to pay back the loans that they take out.
  • Must not offer more than two rollovers per loan.


Since then, many disreputable lenders have left the market, as they couldn’t adhere to regulations. FCA rules have ensured that short term credit is more affordable and that lenders and brokers use legitimate practices to safeguard borrowers from debts and affordability problems in the future.

Top Tips for Getting a Payday Loan

How Do I Get a Payday Loan?

If you’re looking into getting a loan, then the chances are that one of the first things you’ll want to know will be how and what you’ll need when you apply. The following section comprises a bountiful list of everything which is crucial for you to know about the application process, so you’ll know what to expect before you even begin to apply.

 

How do I Apply?

The small loan application process is designed to be quick and straightforward for ease of application in a financial emergency.

You’ll need to start by filling in an application form with some personal, financial and employment details. Once that’s been completed and submitted, we’ll run your application by our a panel of UK lenders to find you a suitable deal. You’ll then receive a decision on your application within 15 minutes*.

If approved, you will need to agree to the terms and conditions set out by the lender, and once your loan terms have been agreed to the lender will process the payment, which can be within your bank account in as little as 24 hours*.

Before you sign your loan agreement, remember to read it thoroughly. It is vital to ensure that you are fully aware of the term and conditions as well as:

  • How much you’re borrowing
  • Total amount repayable
  • Loan duration
  • Any additional charges and fees that could be added to your loan

 

How much can I borrow?

The amount of money you can borrow ranges from anywhere between £100 and £5,000, which will be more than enough to cover the costs of any short-term or one-off problems you may be having. These loans are appropriate for things such as personal expenses, home repairs or even covering small debts.

At Multi Month Loans we offer a variety of payday loan options, for amounts ranging up to as much as £5,000 from 1 to 24 months. Other amounts that are popular for some of our applicants to cover emergency costs include:

 

The amount you borrow will depend on your affordability and creditworthiness, in addition to accounting for what your needs are.

 

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It is always advised only to borrow the amount that you need and steer clear of falling into the trap of borrowing more than you can afford. As you could struggle to repay the loan and any additional interest. Instead, it’s important to ensure that you can afford to repay your loan and the interest back comfortably.

When Should I get a Payday Loan?

Payday loans are not suitable for long-term borrowing, or for significant expenses. If you want to borrow money responsibly and make sure that you do not risk getting yourself in any financial trouble, here are some examples of what you can use them for:

  • When you’ve got regular income: If you’re looking into borrowing credit, make sure that you’ve got a regular form of income and that your circumstances aren’t likely to change anytime soon, this is to ensure that you can afford to cover the repayment of the credit when the payday comes.
  • When you need a relatively small sum of money: Payday loans are an unsecured form of credit and are primarily given out for short-term purposes only they do not offer large amounts of money. Instead, you can get a loan like this if you’re interested in paying off a bill, making an urgent purchase, paying off a small debt, and reasons like that.
  • When you’ve got no other major expenses in that period: Be aware of your other household and personal expenses, as well as your own financial obligations when working out what your budget is when you consider taking out a loan. Before applying, think about all of the other expenses you’ll have to account for during the loan term and whether you can afford to repay the loan with its interest.
  • When you’re in an emergency: One of the most practical uses for a short-term loan is in an emergency. If you’ve got an unexpected payment, you have to make, like a car repair or a medical bill that you hadn’t accounted for. Short-term loans can take care of all of that on the short notice you have to work with. That way you can get your money as soon as possible.

Payday Loan Eligibility

Am I Eligible for a Payday Loan?

After learning what a payday loan is, and how to obtain one, your next question is probably; ‘Am I eligible?’

There is, undoubtedly, a specific criteria that a lender will expect you to fulfil in order for you to have your application approved. Continue reading this section if you want to know if you could meet a lender’s requirements for a loan.

Am I eligible?

Applicants such as students and people on benefits, worry that they won’t be eligible to borrow payday loans. However, the minimum requirements we expect applicants to have to be approved for credit are:

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  • That you are aged 18 years or above.
  • That you are a UK resident.
  • You have a bank account with a valid debit card.
  • You receive at least £750 or more after tax each month.
  • Confirmation that your income is paid directly into your bank account.

If you have managed to meet the minimum criteria to be considered, then you have a good chance of being accepted. If you meet all the requirements the lender expects, approval can take as little as 15 minutes*.

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Can I get a Payday Loan with bad credit?

In short, yes you can still get a loan if you have bad credit. Although it may be likely that you will have to pay additional interest as a premium because of your poor credit. At Multi Month Loans, we accept all applications from all of our customers and carry out all the appropriate checks.

Always check your credit score before applying to see what a lender would make of your credit score. You can do this for free on websites such as Credit Karma, ClearScore and Experian.

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Do payday loans affect your credit?

Just like other forms of credit, your loan won’t affect your credit as long as you ensure that you keep up with your repayments, ensuring that you pay in full and on time.

In fact, if you are able to make your repayments regularly, and successfully pay off your loan and all its interest then it will, in fact, have a positive impact on your credit.

However, if you fail or neglect to keep up with your repayments, then this most definitely will put a mark on your credit report, and your credit will, in turn, be affected negatively, it’s as simple as that.

Can I use payday loans long-term?

No, this is a short-term loan meaning that these loans are not recommended for long-term use, and because we want you to have a better understanding here are the following two reasons why:

The first reason is that they are costly if you use them for long periods of time because of the interest rates. As these loans are only designed for short-term, and convenience use only and the interest rates reflect that.

Meaning if you do it repeatedly, you may realise that you might as well be saving the money you are spending on interest in the long-term for your next emergency. So, if in the future a lender offers for you to keep extending or ‘rolling over’ your payday loan, you might want to think twice about accepting this offer.

The second is, that when you get these loans repeatedly, you run the risk of relying on them financially. You can end up entering a payday loan cycle, which can be costly and extremely difficult to get yourself out of, so it’s important to try to avoid using them in the long-term.

Find Yourself The Best Rates

How to Attract A Suitable Deal

Looking to get a suitable deal on a loan but aren’t sure how? Then read the following section for all our top tips and tricks on what you should be doing and what you should avoid doing if you want to find yourself the best rates available.

How do I Get A Suitable Deal?

  • Only borrow if you know how you’ll pay it back: If you need credit but don't know how you'll make repayments in the future, you should refrain from applying for a loan, until your financial situation picks up. Before you take out any time of finance, you should have a budget or plan for how you'll make your loan repayments.
  • Always shop around: Do your research before you apply. You can compare this type of loan online, by using price comparison websites or by simply comparing the loan company’s advertised rates of APR.
  • Check your credit beforehand: Always check your credit beforehand. The rate of APR that you will be offered will largely depend upon it, so if you have an excellent credit rating then you can expect to be offered the advertised rate. However, if you’ve got adverse credit, then you may be offered a higher rate of APR.
  • Use eligibility checkers: Instead of running the risk of being rejected for credit, you should attempt to take advantage of loan eligibility checkers to see whether you're likely to be approved or not for the amount you wish to borrow.
  • Remember you may not get the advertised APR: In order for companies to advertise their APR, only 51% of their successful applicants have to be approved at that rate. Instead, the likelihood is that they’ll receive a different APR.
  • Remember that your income will dictate how much you can borrow: Unfortunately, it doesn’t matter how great your credit rating is, the truth is, your income will influence how much you can borrow. Lenders must carry out responsible lending practices as this ensures that no applicant is allowed to borrow an amount of money that they could potentially struggle to pay back.
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Have a Hassle-Free Loan

How do I Repay Without Any Problems?

In order to avoid getting stuck in the situation of becoming reliant on loans, it is essential to know what you should avoid when taking out these loans. So if you’re looking to avoid any mishaps in the future, we suggest that you read on.

1. Budget for your repayments:

If you want to be financially responsible and it’s vital to make sure you are able to afford your repayments before you even apply, it’s also a good idea to start budgeting immediately after you get the loan. To avoid missing payments, implement the following simple steps:

  • Every time you want to buy something unnecessary, put that amount aside towards your repayment, instead.
  • Budget the absolute minimum possible for everyday expenses and put the rest aside to make sure you have enough money for your loan repayment.
  • Hold off on any expenses that are not urgent in favour of the loan repayment.

 

The good thing is that the repayment periods aren’t that long, so you won’t have to sacrifice much for long, just until your loan is fully paid and your loan term is up.

2. Don’t borrow more than you need:

It is tempting when getting a loan to borrow a bit more than you need, however being realistic here is essential.

However tempting it may be to borrow a little more money, it is vital that you do not get more money than you need. The reason is simple, the more you acquire, the more you will have to repay and if you can’t afford the repayments then the more difficult it will be.

Moreover, do not fall into the trap of thinking you’ll use what you need and save the rest to use for repayment, because you will probably end up spending all of the loan.

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2. Don’t borrow more than you need:

It is tempting when getting a loan to borrow a bit more than you need, however being realistic here is essential.

However tempting it may be to borrow a little more money, it is vital that you do not get more money than you need. The reason is simple, the more you acquire, the more you will have to repay and if you can’t afford the repayments then the more difficult it will be.

Moreover, do not fall into the trap of thinking you’ll use what you need and save the rest to use for repayment, because you will probably end up spending all of the loan.

Your Next Steps to Take

What should I Consider Before I Apply?

If you’re interested in applying, there’s another step you should take before you start. There’s a good deal of consideration to be done before you should apply, and the following section contains everything you should consider before moving onto the next step of filling out an application form.

What are the Advantages of Payday Loans?

These loans can come with many benefits for the borrower; it all depends on what your needs and interests are. Make sure to review both the advantages and disadvantages before deciding to go ahead with them as your preferred method of finance:

  1. You get the money quickly: One of the main advantages is that they are quick to borrow. The whole process from application to receiving your funds can take as little as 24 hours* on the same day.
  2. You can get your loan in cash: Unlike other loans, there are no added waiting times and you can do whatever you want with the money, without the need of taking it through the bank or having your purchases or transfers registered. What you do with the money is your business, entirely.
  3. No need for collateral: As payday loans are unsecured you will not be asked to provide any type of security, such as a guarantor with your application or home or vehicle to secure the loan against.
  4. You can apply with bad credit: Most payday lenders will accept applications from all types of applicants, regardless of whether they have bad credit or not. Many lenders can also provide bad credit payday loans.
  5. You can repay over several months: Very few people can afford to pay back a loan that quickly, and in full; most of them need a payment plan designed around their needs and therefore is easy to stick to. These loans offer that option, making it easy to budget around the flexible monthly repayment instalments.

Bad credit payday loans can allow you to borrow the money you need. This is a valuable feature since getting rejected for credit can also negatively impact your credit. Although you should be cautious of lenders who offer ‘no credit check loans’ or ‘payday loans with no credit check’, as these won’t be FCA regulated.

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What are the Advantages of Payday Loans?

These loans can come with many benefits for the borrower; it all depends on what your needs and interests are. Make sure to review both the advantages and disadvantages before deciding to go ahead with them as your preferred method of finance:

  1. You get the money quickly: One of the main advantages is that they are quick to borrow. The whole process from application to receiving your funds can take as little as 24 hours* on the same day.
  2. You can get your loan in cash: Unlike other loans, there are no added waiting times and you can do whatever you want with the money, without the need of taking it through the bank or having your purchases or transfers registered. What you do with the money is your business, entirely.
  3. No need for collateral: As payday loans are unsecured you will not be asked to provide any type of security, such as a guarantor with your application or home or vehicle to secure the loan against.
  4. You can apply with bad credit: Most payday lenders will accept applications from all types of applicants, regardless of whether they have bad credit or not. Many lenders can also provide bad credit payday loans.
  5. You can repay over several months: Very few people can afford to pay back a loan that quickly, and in full; most of them need a payment plan designed around their needs and therefore is easy to stick to. These loans offer that option, making it easy to budget around the flexible monthly repayment instalments.

 

Bad credit payday loans can allow you to borrow the money you need. This is a valuable feature since getting rejected for credit can also negatively impact your credit. Although you should be cautious of lenders who offer ‘no credit check loans’ or ‘payday loans with no credit check’, as these won’t be FCA regulated.

What are the disadvantages of Payday Loans?

Like any other type of financing option available, they can also have their drawbacks. These are not necessarily meant to deter you from opting for this kind of financing, but rather to offer you a clear and complete picture.

  1. The interest rates can be high: Depending on how long you wish to spread your repayments, this can make this loan option an expensive one. Therefore, it is essential to make sure that the reason for your loan is worth the interest. The good news is that the Financial Conduct Authority caps the amount they are allowed to charge you for your loan.
  2. Small sums of money: The amounts of money you’ll have access to won’t be high. At Multi Month Loans, we offer payday loans of between £100 to £5,000. This is enough for paying bills, bridging the gap until payday or enough to cover a small amount of debt.
  3. You could become reliant on them: These loans are a short-term solution, not a permanent one. As soon as you finish paying one loan you should avoid finding yourself in need of another. This is why these loans are better suited to financial emergencies and are not a long-term option.

 

Conclusion

In conclusion, payday loans, used in the appropriate circumstances can help you in a short term financial emergency situation. However, if you find yourself in need of help with debt, the Money Advice Service or StepChange is at your service with free advice.

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What are my next steps?

If you’ve read all our information on everything you need to know about a payday loan and think that they are the answer to any problems you may be having, then the only thing left to do is apply!

All in all, online these loans can act as an excellent solution if you’re in a situation where you need money on short notice. An emergency that calls for some financial help can be resolved with a short-term loan, but it is by no means meant to be a permanent, or long-term solution.

FAQs

  • What is a Payday Loan?

    Payday loans in London are a form of short-term unsecured credit which is borrowed and usually repaid on your next payday. These loans are used to help applicants stretch their monthly budget in financial emergencies.

  • How do I get a Payday Loan in London?

    You can apply for a payday loan in London either online or in some cases, over the telephone. At Multi Month Loans, all our applications are taken via our apply page, no paperwork or guarantor required.

  • Why Choose Multi Month Loans?

    Our loans and application process is designed to help make your life easier. We work with a panel of UK lenders to find you the best short term loans from £100 to £5,000 for between 1 to 24 months.