Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk. UKPayday is a credit broker, not a lender.
Responsible borrowing
Borrow only when the numbers work
A loan can deal with a short-term expense. It cannot fix a budget that falls short every month.
Before applying, be honest about why you need the money, what the loan will cost and what will be left after each repayment. If the numbers only work when everything goes perfectly, the loan is probably too tight.
UKPayday is a credit broker, not a lender. We can check our panel for a potential match, but we do not approve applications, provide the money or set your loan terms.
Our commitments
What responsible broking means to us
Responsible broking is not about encouraging every visitor to apply. It means helping you understand the product before you make that decision.
If we find a potential match, you choose whether to continue. You are not committed to taking a loan.
When you use UKPayday
- We clearly identify ourselves as a credit broker
- We do not describe approval as guaranteed
- We use a soft search at the eligibility stage
- We do not charge you for checking our panel
- We explain that a potential match is not approval
- We tell you to check the full cost, not only the monthly payment
- We point you towards free help when more borrowing is unlikely to help
Two directions
Go ahead, or stop and think again
When a short-term loan may be reasonable
Borrowing may be worth considering when:
- The expense is necessary and unexpected
- You know the exact amount you need
- The problem is temporary rather than monthly
- You have checked less expensive alternatives
- You understand the total amount repayable
- Every repayment fits alongside your essential spending
- You know where the repayment money will come from
Examples might include an urgent boiler repair, an essential car cost or a bill that arrived earlier than expected.
The reason should be clear. The amount should be limited to what is needed. The repayment plan should already exist before you borrow.
When you should stop
A loan is unlikely to be suitable if:
- You need it to repay another loan
- You are already borrowing to cover essential bills
- The same shortfall appears every month
- You are unsure how you will make the repayments
- A repayment would leave you short for rent, food or energy
- You have made several recent credit applications
- You are relying on uncertain overtime, bonuses or future income
- You want to use it for gambling, investing or non-essential spending
Borrowing again to repay earlier borrowing can create a cycle that becomes more expensive and harder to leave.
If that is happening, stop applying and speak to a free debt adviser.
Check it yourself
Do a five-minute affordability check
A lender will complete its own assessment, but you should check the figures yourself first.
Start with your normal monthly take-home income. Do not include overtime or bonuses unless they are regular and dependable.
Then subtract
- Rent or mortgage payments
- Council tax
- Gas, electricity and water
- Food and household costs
- Travel and essential car costs
- Childcare and maintenance
- Phone and internet
- Insurance
- Existing loans, cards and other credit
- Regular medical or care costs
- A fair allowance for unexpected spending
What remains is not automatically available for a loan repayment. You still need some room for costs that change from month to month.
Ask yourself
Can I make every repayment without missing another bill, using an overdraft or borrowing again?
If the answer is no—or even “only just”—the repayment is not comfortably affordable.
Who decides
The lender makes the final decision
If you continue after a potential match, the lender will complete its own checks.
FCA rules require lenders to assess creditworthiness and consider affordability risk.
The lender may consider
- Your income
- Your regular spending
- Your existing debts
- Your credit history
- Recent credit applications
- The amount and term requested
- Whether the repayments appear sustainable
The lender decides whether to approve the application. It also decides the amount, interest rate, term and repayment schedule.
You may receive a smaller offer, a different term, a different rate or no offer at all.
Credit searches
Soft searches and hard searches
Checking eligibility through UKPayday uses a soft credit search. It does not affect your credit score and is not recorded as a credit application that other lenders can see.
If you continue with a formal application, the lender will normally complete a hard credit search. This is recorded on your credit file and may affect your score.
Several hard applications within a short period can make future lenders more cautious. If you are declined, avoid immediately applying to several other companies.
A decline may be a useful sign that borrowing is not currently affordable.
The real cost
Look beyond the monthly payment
A lower monthly payment does not always mean a cheaper loan. It may simply mean that you are repaying it for longer.
APR can help you compare borrowing, but it is an annual measure. It can look particularly high for short-term credit.
For your own budget, the clearest figures are usually the amount of each repayment and the total amount repayable.
Before accepting anything, check
- The amount borrowed
- The interest rate
- The APR
- The number of repayments
- The amount of each repayment
- The first payment date
- The final payment date
- The total interest charged
- The total amount repayable
- Any charges that could apply
Where the cap applies
The high-cost credit price cap
Some payday and short-term loans fall within the FCA definition of high-cost short-term credit. Where the price cap applies:
This means a borrower should never repay more than twice the amount borrowed in interest and fees on a loan covered by the cap. The FCA explains the high-cost short-term credit protections.
The cap limits the cost. It does not make the loan inexpensive or suitable for your circumstances.
Other options
Check the alternatives first
Before using high-cost credit, consider whether the expense can be dealt with another way.
MoneyHelper has more information about alternatives to borrowing and high-cost credit.
The cheapest loan is usually the one you do not need to take.
You could
- Ask the bill provider for more time
- Request a different payment date
- Check whether a payment plan is available
- Ask your employer about an authorised salary advance
- Check whether you qualify for government support
- Consider a local credit union
- Borrow from family or friends with a clear repayment plan
- Delay the purchase if it is not essential
If things change
If your circumstances change
A repayment plan that works today may become difficult after a job loss, illness, bereavement, relationship breakdown or unexpected bill.
The lender controls your loan agreement. UKPayday cannot change payment dates, pause interest or agree a repayment plan on the lender's behalf.
If you think you may miss a payment
- Contact the lender as early as possible.
- Explain what has changed.
- Ask what support or alternative arrangements may be available.
- Do not take another loan simply to make the payment.
- Get free advice if the problem is likely to continue.
Extra support
Tell us if you need extra support
Health conditions, disability, bereavement, financial pressure or difficulty understanding information can make financial decisions harder.
If you need information presented differently or more time to explain something, tell us when you contact UKPayday. We will take reasonable steps to make communication clearer and help you reach the correct team.
You do not need to provide more personal information than is necessary.
Contact UKPaydayFree support
Free help is available
These organisations can help you understand your options. You do not need to wait until you have missed a payment.
If you are using credit to cover food, energy, housing or repayments on other debts, speak to a free adviser before applying again.
The final check
Before you apply
Only continue if you can answer yes to all five questions.
If any answer is no, pause before applying.
The legal detail
UKPayday's role
UKPayday is a trading name of PJG Financial Limited. We are an FCA-authorised credit broker, not a lender.
We provide a free credit-broking service and may receive a commission from a lender or another broker if our introduction leads to a credit agreement.
A soft eligibility search does not guarantee that you will be approved. If you formally apply, the lender may complete a hard credit search.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk.
Representative 79.5% APR variable.
Rates from 48.1% APR to 1721% APR. Minimum term 3 months. Maximum term 36 months.
Representative example: Borrow £1,000 over 18 months. Make 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% fixed. Subject to application and approval by the lender.