PaydayUK Charges Don't Compare Well With Other Lenders

PaydayUK is a subsidiary of MEM Consumer Finance LTD and offer payday loans from £80 up to £750 via their web site or by telephone.

They charge £29 in interest for each £100 you borrow which is £4 dearer than Payday Kong or Payday Bank and a whopping £9 more than Quick Quid. Even so, 29% does make them slighter cheaper than some lenders including Wonga and Pounds2Day.

A nice touch is that if your next payday falls within 7 days of you taking out the loan, they don’t settle the debt until your next payday and they don’t add the extra interest on.

PaydayUK claim to have your money in your bank account by midnight as long as you apply before half 3pm and the loan is approved by 5pm.

To qualify for A PaydayUK loan you will need to be 18 or over, be in full time work, have a take home salary of £750 or more which is paid monthly into your bank account and you must have a debit card associated with that account.

The application process appeared to be quick and easy and we didn’t need to fax or post any further documents to them. Once the initial form is filled in and submitted it took around a minute for us to be told we had been approved.

At this point PaydayUK told us how much we could borrow which they base on your earnings and present expenses. If you accept the loan offer you then give your bank account details so they can send the money and your debit card details so they can collect the debt on the agreed date.

The loan agreement was signed online so the whole process took less than 5 minutes and as promised there were no admin fees, bank transfer charges or any other hidden fees some payday lenders like to spring on you after you have accepted the loan.

Our PaydayUK Review

PaydayUK is a member of the Consumer Finance Association and as such follow a code of practice that includes responsible lending. Some may not like the fact that PaydayUK decides how much you can borrow rather than you applying for the amount you want but by doing so they are attempting to make sure you can comfortably repay the loan without going short next month. You can of course borrow less than they offer should you not require the full amount.

PaydayUK do use the credit bureaus so if you settle the debt on time it will be noted on your file which can help to repair a poor credit history but should you fail to repay on the agreed date, that too will make it onto your credit file and so will damage your file. Bottom line – be sure you can make the repayment on time.

All in all PaydayUK offer a good service but nothing out of the ordinary that makes them stand out from the crowd. They aren’t the cheapest but neither are they the most expensive. They don’t get the money into your bank account within the hour like some lenders but they do try to get it into your account the same day unlike some.

The £29 per £100 charges prevents PaydayUK getting anything more than 3 stars. At £9 dearer than Quick Quid and the fact that Quick Quid transfer your money within 15 minutes means PaydayUK fall well short of our current #1 recommendation.

See our payday loan comparison chart to see how PaydayUK stand up to the competition.