How to find a payday loan

Written by Mark Grimley
Published on 21st August 2017
Updated on 3rd December 2019
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Where can I get a short term loan?

How to find a payday loan

If you’re watching this video, you’re probably looking for money, pronto! But freeze. Before you jump headfirst into applying for a short term loan, you need to consider the alternatives.

I’ve explained these in a other video. If you haven’t watched it already, you should do so now as it could literally save you hundreds of pounds. But if you’ve thought about your options and decided to go down the route of a short term loan, then here’s what to consider.

No Credit Check?

I guess you’ve already started your search by typing things like ‘quick cash’ or ‘payday loans’ into Google, and probably seen a list of results with headlines like ‘no credit check’ or ‘guaranteed approval’? Just to clear things up, when applying for a short term loan, you will always be credit checked and approval is never guaranteed.

Why is the APR so high?

To speed up your search and avoid any unexpected fees, your first stop should always be an authorised, regulated price comparison site, such as Choose Wisely. This will let you compare your options before you apply free of charge and without impacting your credit file. When comparing short term loans, you will almost certainly be met with APRs over 1000%. But don’t panic - you’ll never have to actually repay this amount in interest. Because, a) there are a bunch of regulations in place to limit the amount you can be charged; and b) it’s unlikely that you’ll ever get a loan of this type to be repaid over a full year. So if that’s the case, how would you compare your options?

Is the cheapest loan always the best?

Well, I think the most obvious answer is by comparing the amount you’ll actually repay. This is known as ‘total amount repayable’ and it’ll give you an accurate idea of what each loan would really cost you. OPTIOSCORE is another great way to compare your options. It’s Choose Wisely’s very own consumer friendliness rating, and analyses over 20 different factors to give you a complete picture of both the product, and its provider. This is really handy, as the cheapest loan isn’t always the best option.

Can’t I just apply to everyone?

Another key thing to remember is that firing off lots of loan applications in a short space of time will do you no favours and could actually damage your credit file. You best bet is to start off with a tool, for example, Choose Wisely’s Smart Search, which takes only two minutes to complete and will provide you with a list of lenders that have approved you in principle. This takes out the guesswork and gives you the best chance of acceptance.

Don’t forget to compare!

The bottom line is, short term loans need to be approached with caution and should really be considered a last resort. If you’re late with repayments , you could also find yourself in difficulty, so if you cannot afford it, then don’t apply! As always, make sure you know where you stand, compare your options and choose wisely.

Find loans for bad credit

Have bad credit? Have a look at the full range of loans available and compare your options using the Choose Wisely comparison table.

Mark Grimley
Written by
Mark Grimley
Head of Partnerships & Take Control Author at Choose Wisely

Mark joined Choose Wisely in 2015. He continues to work in close contact with the providers, brokers and journalists operating in the world of consumer credit.