Looking for new payday lenders? Check out our alternative
Looking for new payday loan lenders in the UK? Check out our smart alternative to payday lending – learn more now.
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New payday lenders in the UK
Searching for new payday lenders in the UK? Finding the right company for you when looking for credit can be overwhelming due to the number of options available. We made this page to give you some background information on the topic along with some helpful pointers and a chance to learn about our own smart new alternative to payday lending.
First of all, we should answer the question: what exactly is a payday lender? A payday lender is a loan provider who specialises in so-called ‘payday loans’. These are relatively small, short term loans designed to help people cover a temporary shortfall in their budget, for instance to help with an urgent and unexpected bill. It is generally expected that the money plus interest is to be repaid on your next payday or otherwise in a small number of instalments over quite a short period of time. Payday lending originated in the US and first came to the UK in the early 90s. Over the last decade the UK industry went through a period of very high growth.
Then in 2014 new stricter regulations were introduced to help protect consumers and a new regulative body – the Financial Conduct Authority (FCA) – was created and tasked with enforcing them. This meant that many new payday lenders in the UK stopped lending as they foresaw difficulties with the new rules. A number of others changed their business model, shifting their offers from payday lending into a broader range of short term and sometimes even long term loan products. Many also dropped all mention of payday loans from their marketing material, making it harder to find these former payday lenders when searching online.
New payday loan companies: things to consider
More than any other kind of product, a financial product like a loan or consumer credit service is something you should be especially careful with. It is not a decision you should rush into no matter how urgent your situation may seem.
First and foremost you should ensure you are choosing a reputable lender and not falling victim to potential fake companies or scams. A good first step to help is checking if the lender is licensed to operate by the Financial Conduct Authority (FCA). All new payday loan companies and other short term credit providers should be licenced by the FCA, and this should be indicated somewhere on their website. For example, SafetyNet Credit are authorised to trade as a consumer credit business and our conduct is regulated directly by the FCA. Our FCA reference number is 715525 and can be found on the FCA’s register here. This is a good place to look up other lenders and ensure their authenticity.
Another good idea is to then try calling a lender’s customer service. This will give you a chance to ask any questions you may have about what they offer, as well as giving you an opportunity to see how good their customer service is and whether they will be a good fit for you.
Other things you should then look into would include checking whether you meet the baseline eligibility requirements for applying with the lender you have chosen. You should also make sure you have an understanding of the impact taking out a loan can have on your future credit history, as well as ensuring you have an understanding of the exact repayment terms of your borrowing. It is important to only apply for a loan if you are certain you can make all repayments on time.
New payday loan lenders online
There are a number of advantages to looking for new payday lenders online. The internet offers many resources with which to thoroughly research both old and new payday lenders. There is also a wealth of general information available out there about payday loans and other forms of credit which can help you decide what is best for you.
Many new loan lenders and credit brokers also operate entirely online now and so can only be found via the internet. This means there is no longer a need to track down a loan provider with a physical shop on the high street. Everything from researching available options to applying for a loan can now be done entirely online at any time. Thanks to new technologies online lenders also tend to be able to process applications much faster than before.
A smart alternative to new payday lenders
SafetyNet Credit is not a new payday lender, and we do not offer payday loans. Instead we offer an innovative new kind of consumer credit service known as a revolving credit facility, which can help those who may otherwise be looking for new payday lenders. Our innovative form of lending was recognised in 2015 when we were awarded ‘Alternative Lender of the Year’ at the Credit Today Awards.
With a SafetyNet Credit account, instead of applying for a loan, you apply for a credit limit. For new customers this is between £100 and £500, and for existing customers this can extended up to £1,000. Once this is set up you can then log in to your online dashboard and make a manual transfer of any amount from your credit limit to your bank account. You can also switch on our auto-deposits feature which will allow us to top up your bank account with an automatic transfer whenever we see you are close to entering an unauthorised overdraft and incurring unplanned borrowing fees from your bank. You also choose the level at which these automatic transfers occur. Our interest is at a much lower rate than the level at which banks are charging for overdraft fees and since we are a direct lender, there aren’t any hidden brokerage charges. Being a direct lender also benefits our customers as they deal directly with us through our website.
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