The Best Payday Loan in the UK: Ten Options Reviewed in 2023

Fast, free and convenient, THL Direct tops the list of best UK payday loans. 

THL Direct is not a direct lender but rather provides loan matching services for all types of borrowers, including those with low income and bad credit.  

This means that instead of comparing fees and T&Cs of dozens of online lenders, you can fill out a THLD application and find a suitable loan provider in minutes. The company partners with a huge network of responsible direct lenders and tries to match you to one that best suits your needs and unique financial situation. 

Best of all, there are no fees, and if approved, funds can be transferred to your account within the same day.

• Representative Example: Borrow £1200 for 18 months, pay £90.46 per month. Total amount payable: £1628.28. Interest rate 49.9% pa (variable).

Cashfloat has been on the scene since 2014, helping hundreds of thousands of Brits get quick funding. 

Cashfloat offers payday loans between £300 and £1,500 over 3 to 9 months and has simple eligibility requirements and no upfront fees. Funding is available as early as 20 minutes from the time the loan underwriter approves your application. 

The company aims to make your loan more manageable by encouraging early repayments and introducing a unique Easy Start Technology, which allows you to pay less on the first instalment. This gives you more time to get a handle on your financial situation—an invaluable feature, especially if this is the first time you are taking out a payday loan. 

• Representative Example: Borrow £700 over 6 months (First instalment is £168.45, then £224.60 a month, last monthly instalment £112.20). Total amount payable: £1,179.05.  Interest rate p.a. (fixed) 185.39%. 

Unlike traditional payday lenders in the UK who offer a lump sum, Tappily Loans will provide you with a revolving line of credit for up to £2,500. The funds are available to you at all times, so you can take out money when needed (or automatically top up your balance) and repay only when you can afford to. 

The platform charges just 34p a day for every £100 you borrow. Plus, interest is collected only for the days you borrow the money and capped at 75 days on each loan amount you receive, making the loan more affordable and easier to repay.

Finally, Tappily boasts easily-accessible money management tools that can track and analyse your spending, helping you save in the process. 

Representative Example: Borrow £900. Interest rate  0.34% per day for up to 75 days or 25.5% (variable) per annum.

Fund Ourselves is an innovative peer-to-peer lending platform that matches borrowers to investors who are willing to lend to them. 

The company is known for its relaxed eligibility criteria (accepting self-employed applicants and bad credit), instant loan decision (applications can be approved in minutes) and flexible repayment terms (you decide on the repayment frequency and payment dates). 

What’s more, Fund Ourselves has one of the most affordable short-term loans in the UK, giving you up to a 12 months extension without applying any late fees. Interest rates are competitive as well, and you can repay your loan early without incurring any penalty. 

• Representative Example: Borrow £200 over 122 days and repay in four instalments of  £71.71. Total amount payable: £286.82. Interest rate 211% p.a. (fixed). 

Mr Lender is a direct UK lender that specialises in providing short-term loans to all borrowers, even ones with bad credit.

With Mr Lender, you can take out a payday loan from £200 to £1,000 (first-time borrowers are limited to £500), while repayment periods range from 3 to 6 months. 

The company offers competitive APR rates, no late or early repayment fees and flexible repayment schedules (you pick the day you want to make repayments). However, what really makes this loan provider stand out on the list of payday lenders in the UK is that Mr Lender reduces the amount due each month, so you only pay interest on the current outstanding balance, thus making the loan more affordable and manageable. 

• Representative Example: Borrow £200 over 3 months and pay in three instalments (payment one £114.66; payment two £98.47 and payment three £82.57). Total amount payable: £295.70. Interest rate 292% per annum (fixed). 

Lending Stream is one of the fastest and best payday loan companies in the country, promising to approve your application and transfer funds in minutes. 

The award-winning platform is not only fast but secure and reliable as well. Regulated by the FCA, Lending Stream has been on the market since 2008 and has over 25,000 positive online reviews. 

It is also flexible in terms of how much you can borrow. Applicants can get loans from as low as £50 and repay the money between 6 and 12 months. There are no early repayment fees, which means you can pay off your loan before the term is up and save tons on interest. 

Representative Example: Borrow £200 over 6 months in 6 instalments of £64.44. Total amount payable: £386.6. Interest rate 292% p.a. (fixed).

QuidMarket offers a variety of short-term loans, however, it specialises in providing personal loans to borrowers with bad credit or applicants who have been rejected for payday loans in the past. 

Unlike other payday lenders in the UK, QuidMarket does not look at just your credit score but evaluates your current financial circumstances to determine whether you can repay the loan. What’s more, each application for credit is personally assessed by a human employee rather than a computerised system, so you have a higher chance of getting approved. 

With QuidMarket, bad credit loans can go up to £1,500 (or £600 for new customers), while interest rates are fixed, so you will not have any surprises when repaying your loan. 

• Representative Example: Borrow £300 for 3 months in 3 payments of £151.46. Total amount payable: £454.37. Interest rate 292% per annum (fixed). 

Fair, responsible and transparent, Dot Dot Loans provides small personal loans to borrowers that cannot take advantage of traditional financing options. 

When it comes to the best payday loans in the UK, this direct lender lets you borrow up to £1000 and spread out the repayments over 3, 6 or 9 months. Plus, the application procedure is quick and straightforward, while funds are transferred round the clock. 

Dot Dot Loans also has an easy-to-use online portal where you can manage your account (make a payment, check your loan status) or apply for more credit once you have paid off your existing loan. Best of all, the platform is accessible on desktop and mobile devices, giving you the freedom to track your loan while home or out and about. 

• Representative Example: Borrow £250 over 3 months with monthly instalments of £133.65 Total amount payable: £400.95. Interest rate 284.76% p.a. (fixed). 

CASH4UNOW is a responsible UK-based direct lender that offers short-term smaller loans up to £1,000. The company has a free and convenient online application process, which takes minutes to complete, and flexible repayment terms, ranging from 4 to 6 months with no early repayment fees. It also provides reliable and helpful customer service, as well as competitive interest rates. 

Unlike most online payday lenders who use complicated language to confuse borrowers, CASH4UNOW is 100% upfront and transparent about the fees they charge. As a member of the Consumer Credit Trade Association, the platform will inform you of all costs, including late fees, before you sign the loan agreement, so you can set your monthly budget accordingly. 

• Representative Example: Borrow £200 over 4 months and pay 4 payments of £83.00. Total amount payable: £332.00. Interest 292% pa (fixed).

If you are looking for a trusted direct lender, Creditstar is a great option to consider. This platform is part of Creditstar Group, an international fintech company with over 15 years of experience in the business and more than a million users in 8 countries across Europe.

Creditstar also offers flexible repayment options (loan terms start from 6 to 18 months and extensions are possible) and transparent fees (the lender does not have any registration or early repayment fees), while the application and approval process do not take longer than 30 minutes. What’s more with a representative APR of 100.96%, this is one of the lowest interest rates on payday loans you can get right now. 

• Representative Example: Borrow £900 over 12 months and pay 12 instalments of £108.23. Total amount payable: £1298.81. Interest rate 73% pa (fixed).