A Guide to Finding Weekend Payday Loans in the UK
Running into the sudden need for extra money at the weekend can be a frightening experience because everyone knows that many businesses and banks are closed or have limited operating hours on Saturdays and Sundays. The idea of getting any kind of loan from a traditional bank or conventional lender on the weekend sounds like a dream, and it might just be, depending on where you live and how lucky you are.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Fortunately, regardless of where you live in the UK, you can always find local and online payday lenders available every day of the week. In fact, payday loans are one of the only short-term borrowing options that you can reliably access on the weekend.
Furthermore, since some of the best payday lenders have online application portals that can facilitate immediate approval, this is an option that you can try from anywhere. In this guide, we’ll go over everything you need to know about finding and being approved for a payday loan over the weekend.
Where to Find Weekend Payday Loans in the UK
The best part about weekend payday loans is that you don’t need to be in any specific location to find plenty of them from the comfort of your computer. At the same time, you also don’t want to jump at the first payday loan offer you find through a simple web search, either.
Payday lending is an extremely competitive sector in the alternative finance industry, which means there are numerous UK companies that will gladly grant you a payday loan, even for £300 on the weekend. You can find a few companies to compare using search terms like “weekend payday loans UK.”
Is Your Credit Score a Factor?
Now that you know you can carry out a fairly diverse comparison of weekend payday loans through a quick web search, you’re probably wondering what kind of credit you’ll need in order to be approved for same-day approval on the weekend.
As you may know, payday lenders do not consider your credit score as a primary factor during they’re due diligence because they’re more concerned with your income and overall financial stability.
In fact, even people with scores as low as the 400s-500s can still be approved for a payday loan if they can prove that they have upcoming paydays of amounts that will be sufficient to cover the scheduled repayments.
There’s a good chance that you were already aware of the fact that payday loans don’t rely on your credit score or history, but you might be wondering if credit becomes a factor when you need money fast on the weekend. The good news is, a legitimate direct payday lender will never use your credit as the determining factor, regardless of which day of the week you apply on.
How Much Do You Need to Earn and What Kind of Proof of Income Do You Need?
So, now you know that you can get a weekend payday loan online through a direct lender on the same day, and your credit isn’t a factor. At this point, you’re probably wondering how much money you need to be making and what kind of proof income you’ll need to show to facilitate the approval.
Each payday lender will have their own proprietary calculation that they use to determine how much you can borrow based on how much you make. Luckily, this calculation will only become a factor when you’re applying for larger loan amounts. Generally, as long as you can show that you make £500-£1000 per month or more, you should have no problem being approved for loans ranging from £100-£1000.
Since some payday lenders offer loan amounts as high a £2,500 or even £5,000, those kinds of loans are typically referred to as instalment loans and would require you to have a more decent job. The process for finding out how much you can borrow is as simple as applying because the lender will let you know how much they’re comfortable lending you based on the proof of income you’ve provided.
The documents that are considered acceptable proof of income will also vary with each lender, but bank account statements and payslips from verified employers are the most universally accepted. Some payday lenders will only need to see a few weeks proof of income, while others will want to see 2-6 months, particularly if you’re self-employed.
What Else Will You Need to Be Approved for a Weekend Payday Loan?
In addition to showing adequate proof of income, you’ll also need to show a copy of your passport or photocard driving licence. For online weekend payday lenders, this can be done digitally by sending a picture of your passport or licence. You’ll also need to be over the age of 18 and you’ll need to have an active bank account in good standing.
This is an important prerequisite to mention because you’ll be providing your account and sort code numbers so that the payday lender can verify your account is open and has a positive balance. Many lenders will require account and sort code numbers because they’ll be automatically withdrawing an agreed-upon amount from the account on a set date – typically on or shortly after the date of your next payday.
Why are Interest Rates for Weekend Payday Loans High?
As you know, borrowers looking for bad credit loans (people with less-than-perfect credit) can’t exactly be picky about interest rates because all lenders need to protect themselves against the risk that comes with lending to people who are prone to default.
With the default rate jumping from 12.7% to 22.9% within the past year, conventional lenders are more cautious than ever before. This means that more people are having to resort to payday loans, and the default for payday loans has historically been on par with or above the national average default rate.
In other words, payday lenders need to account for the fact that about 1 out of every 3 or 4 borrowers will be defaulting on their loans. To do this, they have to charge an increased annual percentage rate (APR) to offset the losses that come from the high number of defaults they deal with.
However, even with high-interest rates, payday loans are still the most reliable option for most people who need to borrow money fast over the weekend in the UK.
How Soon Can You Access the Money After Approval?
So, just how quickly can you access the funds from a weekend payday loan? Well, many direct payday lenders can transfer the money directly to your account within a matter of minutes, at which point you can just withdraw it from an ATM. Other lenders will have physical locations where you can pick up a debit card that has the funds pre-loaded on it.
If you opt to have the money transferred directly to your bank account, it could possibly take 1-2 days for you to receive the funds in your account, but that’s dependent entirely on your banking provider and is beyond the control of the lender. If your bank does same-day fast-pay transfers, you could receive the money on the same day and even within minutes. Speak with your bank and the lender before applying to get an exact estimate of how long it will take.
In any case, most online payday lenders offer almost-instant approval through a conventional web form that can be filled out in minutes. So, even if your bank won’t allow you to receive the money on the same day, you would still have the assurance of knowing that the money will be posting to your available balance within the next 24-72 hours.
How Can You Withdraw the Funds With Your Bank Being Closed?
If your bank and lender are able to facilitate a same-day transfer, and you’re trying to get the money out of your account immediately, you might be wondering how you can withdraw all of the funds while your bank is closed. This becomes an issue if you’ve borrowed more than you can withdraw from an ATM in one day due to your debit/credit card’s daily withdrawal limits.
In that case, you could use cash-back transactions through retail point-of-sale (POS) devices to exhaust your daily spending limit, which is usually set at £3,000 to £10,000 or more for most bank-issued debit/credit cards. In other words, you could just keep making small purchases and taking the maximum amount cashback until you’ve withdrawn the full loan amount, minus the amount of the small purchases. That’s one possible workaround you can use to access all of the money in your account even when your bank is closed and you’ve reached your ATM withdrawal limit on the weekend.
Another option that may be more sensible is to use your debit/credit card to pay for a postal money order equal to the loan amount and make it out to a friend or family member who can cash it for you. Buying a money order counts as a card purchase, so you can buy one as large as your card’s daily spending limit. Either way, you can use the cash-back or money order methods to get around your card’s daily ATM withdrawal limits after receiving a moderate-to-large, same-day payday loan over the weekend.