You may have found many payday loans when searching online and been put off by high-interest rates and short loan terms. Here at Personal Loans Now, we can offer an alternative option to a payday loan. You can find the best rates available and still get the loan amount you want. With loans available from £1,000 up to £15,000, you’ll find many great options for your next loan. Using our easy to use online application, we’ll find you a payday loan alternative that works for you. Click apply now, and we can help you find the best available payday loan alternative today.
What is an Alternative Option to a Payday Loan?
When looking for a loan, there are many options available to you when you start to search. Not only are their traditional bank loans, many online direct lenders can offer a payday loan alternative. Personal loans offer some of the best rates and provide a fixed interest amount. This is at the beginning of your loan term, making budgeting for payments much easier in the long term. A payday loan refers to borrowing that can be taken out for shorter periods, such as between 1-6 months. Or as a way to borrow money before your next payday if finances are tight. However, with a payday loan, because the loan terms are usually short, the rates of interest can be much higher. This means a borrower would pay back much more in total.
Ideally you want to apply for a loan that provides manageable repayments, low APR and a preferential term. This can all be provided through us, and we’ll search the entire loans market, so you won’t have to. As well as a personal loan, we can help you with guarantor loans as an alternative. This allows you to co-sign a credit agreement with another person. This option can open up an increased chance of approval as the guarantor you choose should have a good credit score. This will therefore reduce the risk to the lender when considering your loan. Having a guarantor is a great option for someone who has bad credit who would otherwise struggle to get a loan.
Why Choose Personal Loans Now as a Payday Loans Alternative Online?
We offer many benefits as a payday loans alternative online, which other lenders may struggle to offer. This includes:
- Complete Online Application – you can apply fully online within 3 minutes without having to wait for any paperwork to be signed.
- Low APR Rates – we’ll scan the market to find the lowest APR rates for you.
- Instant Approval – once you have applied, we can provide you with an instant decision in just 90 seconds.
- Same Day Funding – once approved, we can credit your bank on the same day.
- High Acceptance Rates – we have helped 50,000 applicants just like you get the loan approval they need, and we’re eager to approve more.
When you want quick and convenient ways to find a loan, choose Personal Loans Now payday loan alternatives. We’ll help you find the best rates and get funded on the very same day.
How Can I Apply for a Payday Loan Alternative?
An application through us takes just 3 minutes to complete. It will provide you with an overview of the entire loans market from 40+ lenders. To be able to see this, you will need to meet the following eligibility requirements first:
- You are 18 years of age or older
- You are a current UK resident
- You have a UK bank account
- You receive a regular income
Meeting the above criteria is a minimum requirement. It does not guarantee you’ll be approved for the loan amount and terms you apply for. You’ll need to have a credit check performed and a full assessment of your affordability. This will form part of the approval process.
How Does the Application Work?
It’s quick and convenient to submit an application to find payday loan alternatives through Personal Loans Now. With it taking just 3 minutes to complete, you’ll need to provide a few personal details. This includes your date of birth and employment details, to see your own personalised table of offers. No credit check is performed to see this information, so you can fully review the loan offers available. This will help you decide on a loan without affecting your credit rating first. You’ll also need to enter the loan amount you’re looking for, including the desired repayment terms. If you’re unsure how much you want to borrow, use our loan calculator. This will show you how much the repayments and interest will be.
Once you have filled in the relevant details, you’ll see your personalised table of offers. This will show you all the direct lenders who can look to help you get the loan amount you want. As direct lenders ourselves, we may be able to provide the loan you want directly. But if we cannot approve your loan, you’ll see other payday loan alternatives available. Then it’s just a matter of deciding on the lender you want to continue with. You’ll then have a credit search conducted as well as affordability checks. We can provide you with a decision in just 90 seconds. This means if you are approved, you can receive the funds into your bank on the same day.
Payday Loan Alternative FAQs
Do I Need a Guarantor to Apply for a Payday Loan Alternative?
Depending on your current financial situation, you may need a guarantor to apply for the loan you want. You may find some lenders are able to approve you without the need of a guarantor. But this depends on what your credit rating is and your current level of affordability. If you need a guarantor to co-sign the agreement, they’ll need to meet the following requirements:
- They can be a relative, friend or co-worker
- They cannot be your spouse or someone you share a joint bank account with
- They must be in full-time employment
- They should have a good credit history
- They must be at least 21 years old and no older than 75 years old
Some lenders may require additional criteria for a guarantor. You will need to check the credit agreement carefully and find a suitable candidate.
How Much Can I Borrow?
At Personal Loans Now, we can offer unsecured borrowing between £1,000 and up to £25,000. However, this can vary on the situation. For example, if you need a guarantor, you may only be able to apply for amounts between £1,000 and up to £15,000. How much you can borrow also heavily depends on your credit rating. So, if you have bad credit, you may be limited to borrowing amounts of up to £7,500.
Can I Apply for a Payday Loan Alternative with a Poor Credit Score?
Yes, we may still be able to offer you the loan you want even if you have a poor credit rating. We consider your full affordability as well as your credit score when applying for borrowing. If you do have bad credit, we may still be able to connect you with a payday loan alternative lender. However, with bad credit, you’ll find that the loan amount will be much lower (maximum of £7,500). The interest applied could be much higher as well. It can help to have a guarantor attached to the loan if you do have a poor credit score. You’ll need to consider your current situation and work out what your disposable income and credit rating is. Ideally you should do this before applying.
Can I Borrow Higher Amounts with Payday Loan Alternative Borrowing?
Yes, you can borrow higher than £25,000 but these loans will need to be secured against a personal asset. A secured loan will provide the opportunity to borrow between £10,000 and up to £250,000. But this will need to be secured against an asset such as a car or property. Because of the higher lending amount, the risk to the lender is much higher. This is why you would need to secure the amount to a personal belonging of value. This heavily depends on your credit rating. Secured lending usually is much more difficult to receive approval for with bad credit.
Can an Alternative Option to a Payday Loan Help Me if I’m in Financial Difficulty?
An alternative option to a payday loan can help pay for many things. However, using them for existing debt or repayments isn’t recommended. Using another loan to pay for other borrowing can cause you to fall deeper into financial difficulty. If you’re in a long term financial issue, we recommend you seek help from a free to use organisation. Companies such as the Money Advice Service or Citizens Advice, can give impartial financial advice. As a responsible lender, we cannot lend to someone in financial difficulties. Applying for more borrowing will also impact your credit rating even further.