How to apply for a payday loan

A payday loan, sometimes referred to as a short-term loan, is a form of flexible credit that you pay back over several months. Payday loans are often used to help cover emergency expenses such as urgent car repairs, broken boilers, and surprise bills, giving you breathing space if your budget is temporarily stretched thin.

So what should you know before borrowing online? From how much interest you could be charged to how you’ll pay it back, applying for any type of credit takes careful consideration. When you apply with a responsible lender, getting a payday loan is often straightforward – but it can be helpful to understand the process before you dive in.

This guide will map out the essential steps to applying for a payday loan online. We’ll break down how to get a loan, helping you to understand what to expect and prepare. That way, you can make an informed decision regarding whether it’s the right choice for you.

In this guide:

• How to apply for a payday loan 
• What happens after getting a payday loan?
• How to cancel a payday loan application if you change your mind 
• Discover more helpful resources with Moneyboat 
• How to get a payday loan: FAQs

How to apply for a payday loan

Lenders will always try to make it quick and easy to apply for a payday loan but it’s important to make the right choice for you. The following steps will help you to decide:

Reviewing your eligibility

Understanding your eligibility and suitability is a major first step in knowing how to get accepted for a loan. We explore everything you need to consider in our guide on what to know before borrowing online, but here are some key areas you should assess before you apply:

• Review costs: Take into account the true cost of getting a payday loan, including interest and APR.
• Assess your affordability: Look at how borrowing may impact your current outgoings and financial commitments.
• Check your credit score: Lenders use this to decide if they’ll approve your application, and what rates you’ll get.
• Research payday loan alternatives: Explore every avenue, such as a credit card or arranged overdraft, as you might find a better option.
• Consider future commitments: For example, could a payday loan affect a mortgage application.

Beyond the points above to consider, each lender will have its own minimum lending criteria. Our guide on payday loan eligibility criteria explains everything you need to know about how to qualify.

What do you need to get a payday loan?

To apply for a payday loan, you’ll need to pass a range of affordability and eligibility checks.

You will be asked for:

• Personal details: To confirm your identity, age, address and nationality.
• Home ownership status: You’ll be asked whether you own your own home or if you’re renting.
• Details of all your regular outgoings and expenses: To accurately assess your affordability for a loan, so you don’t borrow more than you can manage.  
• Bank details: So your funds can be deposited into your account. Direct lenders may also set up a continuous payment authority to schedule automatic repayments.
• Employment details: To confirm your employment status and income.

How easy is it to get a payday loan?

How easily you’ll be accepted for a loan depends on your circumstances. The steps to getting a payday loan when you need a temporary financial buffer are often quick and simple. Keep in mind, responsible lending practices ensure that thorough eligibility checks are made to protect consumers from borrowing beyond their means.

How long does a payday loan application take?

From getting a quote to receiving funds in your account, you can often complete a payday loan application in a day. However, this may depend on operating hours, and the verification processes of the direct lender. At Moneyboat, once we complete our essential checks, we can share funds with borrowers in just fifteen minutes.

Can I apply for a payday loan with bad credit?

Even if you have bad credit, responsible payday loans consider factors beyond your credit score to determine your suitability. However, having a lower credit score may impact the terms you’re offered. You can find out more about getting a payday loan with bad credit in our helpful guide.

What happens after getting a payday loan?

Once everything is signed, sealed, and your funds are delivered, you’ll be on the path to repayment. Here’s what you can expect after getting a payday loan:

• Repaying in instalments: Flexible payday loans can offer the choice to spread the cost over several instalments, and this payment schedule is entirely up to you. Typically, you’ll receive automated notifications reminding you of your next monthly repayment.
• Paying back interest: As well as the amount borrowed, you’ll also pay back interest with each repayment.
• Opting for early repayment: Many responsible lenders will offer early loan repayment, meaning you could pay off your loan by your next payday if you wish.
• Impact on your credit history: Taking out a payday loan will be registered on your credit report. However, repaying a payday loan responsibly can also help strengthen your credit score by showing you can manage and repay credit.

How to cancel a payday loan application if you change your mind

Cancellation terms vary depending on the direct lender. Here at Moneyboat, you can cancel your loan application as long as it’s still pending – meaning you haven’t received the funds yet. You’d need to call or email us to let us know you no longer wish to borrow.

If you’ve already received funds, you’ll always have a 14-day ‘cooling off’ period. This means you can return the funds and cancel your arrangement – no questions asked – so long as it’s within 14 days from when you signed. You will be required to repay the interest accrued over those 14 days.

Discover more helpful resources with Moneyboat

Payday loan applications are designed to be quick and straightforward, helping you access the funds you need to tide you over in a pinch. Knowing the steps to apply and what’s expected of you can help eliminate any surprises. And most importantly, you’ll know if it’s the right choice for you.

From comparing payday loans vs short-term loans to how to compare payday loans, we’ve got a whole range of guides to help iron out any questions.

If you’d like to discuss your finances with a confidential advisor before getting a payday loan, there are plenty of free and independent support organisations that can help. Reach out to Citizens Advice, MoneyHelper or National Debtline for guidance.

How to get a payday loan: FAQs

Are payday loans regulated by the FCA?

Yes, providing that you apply for your loan with a lender who is registered with the FCA (Financial Conduct Authority), they will be duty-bound to observe responsible lending practices. Lenders who are FCA-authorised will make this clear on their website, so always remember to look for this accreditation before deciding to apply with a particular lender.

Explore our guide on how to check if a payday lender is FCA-registered to learn more.

What if I get turned down by a payday loan online?

If you’re told that your application for an online payday loan has been turned down, it may mean that you haven’t met the eligibility criteria. These checks are required by the Financial Conduct Authority (FCA) to protect customers by ensuring that they can afford to repay their loan.