Payday loans: Borrow up to £1,000

Tired of having your loan applications rejected?

Whether you survived the financial crisis or not, the Credit Card crunch still hits household hard!

While an economic crisis may be over (for now, at least), there are many families out there who are struggling and trying to make ends meet.

Yes, financial assistance might be available, but this support is either not enough or not offered to people with lower incomes or poor credit scores.

Does this sound familiar?

“I have a perfect credit score and have never missed a repayment, but they still rejected my application. Why?”

We get it.

For many, credit is not offered to everyone, even those with good credit scores.

And Financial institutions are tightening their lending criteria.

But, there is a simpler, more straightforward option:

A payday loan.

What is a payday loan?

A payday loan is a temporary solution to borrow a small amount to aid households in meeting their monthly expenses, between their ‘paydays’ – hence the name payday loan.

The idea is that once you receive your next salary, you repay the amount owed to avoid any long-term debt. Think of it as a friend helping you out or your employer providing you an advance on your monthly wages without the social stigma of asking to borrow money.


Typically, payday loans:

  • have a smaller denominational value (the amount being borrowed)
  • shorter repayment period (2 to 3-week timeframe)
  • are repaid in full at the end of the month, usually around your ‘payday’
  • can offer repayments in instalments for longer term loans
  • are used for expected financial needs

The industry has changed a lot during the last 2 years and the understanding of what a payday loan is has changed with it. Today, the average loan period is 3 months, yet this is still called a payday loan due to the fact these loans are quick and easy to apply for (compared to regular bank loans).

Peachy is a payday loan direct lender in the UK and is one of the few trustworthy providers that continue to offer traditional loans and credit.

But, what if I have bad credit?

For many, having bad credit can be seen as a stigma and worse, not being able to apply for loans and credit cards.

Bad credit is a phrase used to describe those with a history of poor financial circumstances or have suffered when managing their finances. Those who have a poor credit historically have missed credit obligations like a utility bill, credit card or not repaying a loan on time.

Bad credit then, is an indication that one borrower is likely to be riskier to lend to than another.

Those who have a low credit rating then find it extremely difficult to find credit to manage their lives. Examples of this could be:

  • Continually repaying loans late
  • Failure to repay a loan in full
  • Bankruptcy or Individual Voluntary Arrangement (IVA)
  • Had your home or car repossessed
  • Debt passed to collection agencies

There is another group of borrowers who are also affected by poor credit history – those who have never borrowed in their lives.

Having no credit score is just as bad as having a negative credit history as lenders have no idea about your ability to repay credit.

How do I know if I have no or bad credit?

Like any other credit application, applying for a payday loan is no different. Each lender will use a different credit agency to aid them in correctly assessing your application.

Those with no or a low credit rating could be accepted dependent on which credit reference agency the lender chooses to use.

Before you apply for a payday loan, it is probably a good idea to check your credit score with several credit reference agencies first to determine whether you are likely to be accepted or not by payday lenders.

Once you have this information at hand you can pick and choose payday lenders who use specific credit reference agencies that have given you a more favourable score, increasing your chances of being approved for a payday loan.

Not sure what your credit score is?

Visit to find out.

Do payday loans impact credit scores?

According to Experian, a leading UK credit scoring agency, payday loans online do not impact your credit score if you repay them in full and to the agreed payment terms.

Another point to note is that you do not have a single credit score, as each credit scoring agency has their own criteria for assessing your score, that will impact you when applying for credit.

How do payday loans work?

Payday application decisions are usually instant, with the loan deposited either on the day or the following working day. The approved application will be counted as an unsecured loan, meaning that it is not tied towards an asset like a house or car, should repayment not be met.

Within a payday loans UK agreement, there are two parties – the lender and the borrower, each with responsibilities that must be met as part of the signed agreement. Importantly, this is referring to the loan repayments and the agreement to pay the loan interest.

Payment methods can include:

  • supplying a post-dated cheque
  • a recurring payment facility – standing order or direct debit to avoid late payment charges and additional fees

Failure to repay on time will further impact your financial credit history.

When should you take out a payday loan?

Typically, financial pressures occur throughout the year and can be planned. Yet, even with the best financial planning, household personal finances can go awry – and when households least expect it.

Examples include:

  • broken boilers
  • paying tax bills in April
  • school trips
  • medical costs
  • car breakdowns
  • or worse – a loss of a job and regular income.

Payday loans online can be a source of reassurance during a household financial crisis

It’s during these circumstances that you may consider a payday loan online, to help you bridge the gap between monthly salary payments to pay for these sudden unexpected costs.

You can use them at any time you think they will play a role in helping you balance your monthly budget.

Payday loans, although regulated the same as bank overdrafts and credit cards, are more flexible when it comes to credit assessment.

Plus, unlike borrowing money from friends, you don’t have to disclose your financial situation to loved ones and you’ll never have to pawn or sell your own valuables.

“Savvy customers utilise payday loans as a short-term credit option as a viable alternative to traditional finance, that is restricted by tougher regulations”

What you need to know about payday loan charges, fees and repayments

For consumers in the UK, payday loans are regulated by the Financial Conduct Authority (FCA), designed to protect consumers from unscrupulous lenders and their tactics. The FCA also stipulate that payday lenders provide clear and transparent guidelines and information about their products to consumers.

“Specifically, the FCA ensures that potential borrowers are aware of the costs involved in taking a payday loan.”

Due to payday loans having a short loan period and small amount lent, they have a high Annual Percentage Rate (APR).


Well, simply put on such small amounts over a shorter-term period, this is how payday lenders earn their income. Furthermore, you are paying for the convenience of receiving cash quickly, without rigorous paperwork like you’d expect with traditional financial institutions.

There are additional charges that you need to be aware of including:

  • interest
  • processing fees
  • other associated charges depending on the lender.

Compared to traditional credit sources, these charges have been regarded as expensive.

Should you decide a payday loan is for you – always examine the fees involved.

When not to use payday loans

Payday loans are not a permanent financial or long-term solution, they should only be considered as a temporary measure.

Here are a few examples of what you should never take out a payday loan for:

  • planned expenses (like rent or mortgage payments)
  • repaying existing debt
  • never, ever, be used to gamble with, in the hope of making more money

Plan ahead, and only use payday loans online for life’s little emergencies.

There are several short-term financial solutions for those financial bumps in the road, and payday loans are one option.

Should you decide that a payday loan is the only solution viable for your circumstances, ensure you find the right payday loan provider for you – one that is secure, transparent about fees, and responsible in lending you the money in the first place.

Payday loans should always be considered a temporary short-term solution to your financial situation – so do your homework and find the right online solution for you.

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Peachy loans