Written by
Cara Bradley
5 min read
Updated: 27/02/2024
In the event of an unexpected expense, you might think about turning to an online payday loan to help cover the costs.
Our guide provides handy information on payday loans and other alternatives that you might want to consider.
What are payday loans?
Payday loans are a sum of money borrowed from a lender and are usually required to be repaid in full within a month.
As the name suggests, they are designed to tide you over between paydays in the case of a financial emergency, such as urgent car repairs that cannot wait.
Can I search for a payday loan with Viva Money?
Viva Money is a credit broker, not a lender, and we do not work with any lenders who offer payday loans. We can, however, help you search for a short-term personal loan.
Unlike payday loans, short-term personal loans offer more flexible repayment options, allowing you to spread the cost of borrowing.
With Viva Money, you can search for loans from £100 to £10,000, with repayment terms between 3 and 60 months, depending on how much you apply to borrow.
To search for a loan with Viva Money, you must:
- Be over the age of 18;
- Be a UK resident;
- Have a UK-issued bank account with a valid debit card; and
- Have a regular source of income paid directly into your bank account.
How quick are online payday loans?
Applying for any type of loan using an online form may be a more convenient way to access emergency funds than the traditional route of applying in a high street bank branch, for example.
Many lenders now offer online applications, meaning you can apply at a time and place that suits you.
The Viva Money online form is straightforward and should take no longer than five minutes to complete. In just 60 seconds, we’ll use the information you’ve provided to run a soft credit search on your financial history and scan our panel of lenders for a suitable loan for you.
If we’ve found you a match, you will be redirected to the lenders website to complete some further checks. This will include a hard credit search.
Regardless of the type of loan you’re applying for, you can help avoid any processing delays by having certain information and documents to hand.
As an example, you could be asked for the following:
- Proof of identity;
- Proof of address;
- Payslips; and
- Benefits statements, if applicable.
How quickly can I receive my payday loan money?
Payout timescales vary between lenders. If you apply elsewhere for a payday loan, you will be able to ask your lender when you can expect your payment to be made.
Some of the lenders on the Viva Money panel can pay out your short-term loan on the same day as your application is approved.
Remember, the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.
Can I get a payday loan with bad credit?
Getting approved for any type of loan with bad credit could be difficult. You might find that if you are offered a loan, it could be for a higher rate of interest. There’s also a chance that you may not be able to borrow as much money as you’d like.
A few of the lenders on the Viva Money panel are happy to consider short-term loan applications from those with bad credit.
Could improving my credit score increase my chances of being approved for a loan?
Whether it’s a payday or short-term loan you choose to apply for, a good credit score could open your borrowing options and unlock better interest rates.
You can work towards increasing your credit position by doing the following:
- Paying your bills on time.
- Staying well within the credit limit of any credit card(s) you currently have.
- Registering to vote. This will provide lenders with a quick way to verify you at your current address.
- Checking your credit report for any errors.
- Limiting the amount of credit applications, you make. When you apply directly with a lender, they will run a hard search on your credit file, which can remain visible for up to 12 months. Too many hard searches over a short period of time can cause your credit score to decline.
Choosing a credit broker or lender for your loan
Credit brokers, like Viva Money, work with a panel of lenders to find a suitable match for you, which could save you time. Viva Money use soft search technology to look at your credit history, with no impact to your credit score.
When you apply for a loan directly with a lender, you will undergo a hard credit search. As we talked about earlier, too many hard searches carried out too close together could result in a drop to your credit score.
Before you apply for a loan with either a credit broker or lender, you should check that the company is on the Financial Conduct Authority (FCA) register.
I can no longer afford to repay my loan; what are my options?
Whichever type of loan you’ve taken out, the first thing you must do if you can no longer afford your repayments is contact your lender.
Making late repayments or failing to make your repayments at all could lead to additional charges, late fees, and a decline to your credit score.
Reaching out can be scary, but letting your lender know of your situation as soon as possible will give them a chance to work with you to put a plan in place moving forwards.
I’m worried about money; where can I turn for help?
We’re so sorry that you’re feeling this way. While money can sometimes feel like a taboo, it’s important to remember that you’re not alone. Money troubles can happen to anybody, at any time, and there is absolutely nothing to be ashamed of.
There are many websites that offer free advice on a variety of money and debt-related topics; why not take a look at Citizens Advice, National Debtline, and MoneyHelper.
Viva Money is proud to work alongside charity StepChange to provide a free, online Money Health Check quiz.
How does it work? Simply answer a few questions about your current financial situation. Your answers are totally confidential and will generate advice on what you can do next to take back control.
