How do monthly payday loans work?
These are short-term loans that you typically apply for online. You can generally borrow amounts ranging from small 100-pound loans up to £3000. (The amount will vary depending on the provider).
You can also select how long you want to repay the loan. Again, while this will depend on the provider, you have the traditional payday loan that you repay on your next payday as well as other repayment options up to 3 or 6 months. 12-month loans are not uncommon either.
This flexibility means you aren’t stretched financially when repaying the money as you are spreading the payments across several months if need be.
Once you have decided how much you would like to borrow and the repayment term, initial approval could be instantaneous. (If it isn’t, don’t worry — sometimes lenders need a bit more information from you before they can make a decision).
If your loan application is approved, the money could be in your nominated bank account within an hour (with some lenders this could take a little longer).
Even if you have bad credit, loans may be available
There are lenders who are sympathetic and understand that sometimes people experience financial glitches that affect their credit history. So, if you have a less than perfect or poor credit history, you can still apply for monthly payday loans (providing you meet the eligibility criteria of course).
If your payday loans application is approved, you may find that in some cases the lender may offer you less that you want, to ensure that you’ll be able to comfortably meet your monthly payments.
Of course, all responsible payday loans providers reserve the right to decline any finance application if they feel it is not in your best interests.
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(It won't affect your credit score‡)