Payday Advance loans

Understand how payday advance loans work, the pros & cons and how to apply. Compare payday advance loans and check your eligibility with Choose Wisely.

Table of contents

Written by Mark Grimley
Read time: ~5 mins
Published: 28th September 2023

How do payday advance loans work?

Payday advance loans, also known as advance loans, are short-term borrowing options designed to provide you with immediate cash when you're facing an urgent financial need.

These loans typically have a shorter repayment period, often coinciding with future paydays.

Here's how the process generally works:

  • Eligibility Check: Once you submit your application form, Choose Wisely's Eligibility Check service will compare your details against a wide lending panel to find personalised loan options that match your needs.
  • Compare Options: You'll receive a list of loan offers tailored to your situation
  • Decision: Compare your loan options and choose the one that suits you best. Remember to consider the total cost of borrowing, repayment terms, and your ability to repay.
  • Payment: If your loan application is approved, the funds will typically be deposited into your bank account within a short timeframe, sometimes within the same day.
  • Repayment: Repay the loan according to the agreed terms, which usually involves automatic deductions from your bank account on a set date. Make sure to make repayments on time and in full to avoid potential fees or penalties.

What is a payday advance loan?

A payday advance loan is a financial product that allows you to access a small amount of money quickly to cover unexpected expenses or temporary cash shortages. Unlike traditional bank loans that may have lengthy approval processes, payday advance loans are designed to be more accessible to individuals with poor credit profiles or those who lack a credit history.

These loans are typically unsecured, meaning they don't require collateral, and the amount you can borrow is often based on your income and ability to repay. Payday cash advance loans are meant to be repaid in a short period, usually within a few weeks or months, depending on your repayment terms.

Where can I get an online payday advance loan?

If you're considering a payday advance loan, it's essential to choose a reputable lender who operates within the regulations set by the Financial Conduct Authority (FCA). At Choose Wisely, we provide a trusted platform where you can compare personalised loan options from a wide selection of lenders. Our Eligibility Check service helps you compare the best loans for you and your circumstances.

It's important to note that Choose Wisely does not provide loans directly. We allow you to compare lenders who may be able to offer you suitable loan options. By using our service, you can save time and effort while accessing a range of loan choices that match your financial circumstances.

What are the pros and cons of payday advance loans?

Like any financial product, payday advance loans have their advantages and disadvantages. It's crucial to consider these factors carefully before deciding whether a payday advance loan is the right option for you. Here are some pros and cons to keep in mind:

  • Quick Access to Funds: Payday advance loans can provide fast access to cash, helping you cover unexpected expenses or emergencies.
  • Convenient Application Process: The application process is usually straightforward and can often be completed online, saving you time and effort.
  • Accessibility: Payday advance loans may be available to individuals with poor credit scores or limited credit history.
  • Flexibility: These loans can be used for various purposes, giving you the freedom to address your immediate financial needs.
  • Higher Interest Rates: Payday advance loans often come with higher interest rates compared to traditional loans, reflecting the shorter repayment period and higher risk for lenders.
  • Potential for Debt Cycle: If not used responibly, payday advance loans can lead to a cycle of debt, especially if borrowers rely on them frequently without addressing any underlying financial issues.
  • Limited Borrowing Amounts: The amount you can borrow with a payday advance loan is typically smaller compared to other loan types, which may not be sufficient for significant financial needs.
  • Financial Impact: Failing to repay a payday advance loan on time can result in additional fees, penalties, and a negative impact on your credit score.

Remember, it's important to evaluate your financial situation and consider alternative options before committing to a payday advance loan. If you're unsure about your decision, seek advice from a financial professional or a debt charity.

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

Payday Advance Loans FAQs

Can I get a payday advance loan online?

Yes, many lenders offer payday advance loans online. Choose Wisely provides an Eligibility Check service that allows you to compare the best personalised loan options for you from the comfort of your home.

How quickly can I receive the funds from a payday advance loan?

The speed in which you can receive cash after being approved can vary depending on the lender. In some cases, you may receive the funds on the same day or within one business day.

Can I apply for a payday advance loan if I have bad credit?

Yes, some payday advance loans are designed to be accessible to individuals with poor credit profiles. Lenders consider other factors rather than just your credit score, such as your income and ability to repay, when assessing your application.

What happens if I can't repay a payday advance loan on time?

If you're unable to repay a payday advance loan on time, the first thing you should do is contact your lender immediately. They may be able to offer alternative repayment options or work with you to find a solution. Late or missed repayments can result in additional fees and can have a negative impact on your credit score.

Are payday advance loans the only option for quick cash?

No, there are other options available for obtaining quick cash, such as credit cards, personal loans, or borrowing from friends and family. It's important to consider these alternatives and choose the option that best suits your needs and financial circumstances.

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.

Important Information.

All of the information in this guide is correct at the time of writing.

If you complete a loan search application on the Choose Wisely website, the rates shown may vary based on your personal circumstances, are subject to status and are available to those aged 18 and over. Rates available range from a minimum of 13.9%APR to a maximum of 1721%APR Representative and loan repayment periods range from 3 to 60 months.

If you need financial advice you can visit stepchange, speak to citizens advice, call the national debtline or speak to

If you've been declined, please refer to your credit report to gain an understanding of why before making further applications.
You can access your credit report for free from Credit Karma, Clearscore or Experian.

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