Payday Loan Alternative
Borrow between £100 to £2000
Representative example
Consider a Payday loan alternative.
Millions of people use Payday loans and while they are handy to help when you need cash in the middle of the month until your next payday they also have their drawbacks. Having a large chunk of money taken from your salary in one go can put you right back into the same position you were in when you needed the loan. You then need to take another Payday loan a few weeks later. This can turn into a difficult cycle to get out of.
At Money trumpet we can help find a payday loan alternative which will allow you to pay the loan back over a few months, making things easier for you by extending the payment period. For example, you can borrow as little £100 over 3 months or as much as £2000 for those bigger emergencies, you decide on the loan amount.
We believe in providing the best service possible to our customers and most importantly for you is being able to use a hassle free, fast service that helps you find a great instalment loan. We only work with reputable lenders that provide an honest and competitive service. You will have to be employed though, otherwise a specialist loan for unemployed will be more suitable.
Payday Loans and Instalment Loans – What’s different?
As mentioned above with Payday loans or wage loans as they are sometimes called is that you will pay back the full amount on your payday plus the interest. An instalment loan however is paid back over a period of time by a series of scheduled payments. This means you can comfortably repay the loan and still meet your other commitments. there is nothing worse than being paid only to have a large chunk of your salary taken. If this results in you not being able to meet your other financial commintments it could affect your credit score.
What do I need to know about Payday loans and instalment loans in the UK.
How much can I borrow?
You can borrow from as little as £100 all the way up to £5000, the more you borrow the longer the loan term will be making the repayment period easier to manage, it’s really up to you to decide how much you need to borrow while making sure you can comfortably repay the money. The more you borrow the more you will be paying back, remember interest rates may vary as well. It may be easier to repay an instalment loan than a payday loan as its spread out. Always remember though if you fail to repay any type of loan it will have a negative effect on your credit rating.
Which one is more expensive?
Generally, the APR is a lot higher with payday loans as its paid back all in one go on your salary date, so you only borrow the money for 2-3 weeks. An instalment loan is a smaller monthly repayment but as the length of time is longer the overall cost is higher.
What’s the application process for an alternative payday loan?
Our process for a payday loan alternative is very simple and can be completed in a matter of minutes. Complete the quick form and Monevo will search in real-time across their network of instalment lenders to find a suitable loan. After the lender has carried out their relevant checks and you will have a final decision.
Also remember our service is free. We do receive a fee or commission should you be approved for a loan. This doesn’t affect your deal. it also doesn’t matter if you get paid weekly or monthly because this is not a traditional payday loan you will not be paying back the money all in one go on your next payday. The repayments will be monthly though.
Will I definitely be approved for a payday loan alternative?
As all the lenders on the panel have to comply with the FCA none of them can guarantee a payday loan alternative and all the normal checks are still carried out. If your financial status in good stead and you earn a regular income you stand a good chance but each lender has their own criteria and will practice responsible lending, all lenders that offer payday and instalment loans are authorised by the FCA. At the moment only we only currently provide our service to UK residents, although that may change in the future.
How do I qualify for a payday loan alternative?
You should be able to say yes to the below to make sure you’re eligible.
- Be at least 18 years of age
- Be a UK resident
- Be employed or self-employed (with accounts)
- Have a valid bank account
- Posses a valid debit card
- Have a current email address and phone number
- You are not undergoing bankruptcy or in debt management
- Agree to undergo a credit check.
Does it matter what I spend the money on?
Not at all, your free to use the loan for whatever you need to. The lenders are more concerned that you’re able to comfortably replay a loan rather what you want the money for.
What happens if my circumstances change?
Life changes and things happen that you won’t expect the lenders relaise this as well. if you find yourself in difficult circumstances always reach out to your payday loan alternative lender and let them know your situation. In most cases they will be able to assist you to make things easier. it’s never a good idea to ignore the situation as this can lead to defaults and sometimes worse. Always make sure your lender is aware of what is going on, that way they can help.