Direct Lender Payday Loans

Cara Bradley

Written by

Cara Bradley

5 min read

Updated: 08/03/2024

If you need money in a hurry to pay for an urgent expense, you might be wondering if applying for a payday loan directly with a lender could be the quickest way to borrow money.
Our guide aims to answer the questions you might have, while providing information on what could be an alternative option, a short-term loan.

What are payday loans?

As the name suggests, payday loans refer to money borrowed from a lender between paydays and are usually required to be repaid in full within a month.
Because of their short borrowing term, payday loans tend to come with high rates of interest.

Can I get a payday loan directly from a lender?

You may be able to get a payday loan directly from certain lenders.
Before you search or apply for a loan with any company, it’s important to ensure that they’re authorised and regulated by the Financial Conduct Authority (FCA).
You can check the FCA register here.

Please be extremely cautious should you encounter a company that claim to offer loans without a hard credit check or appear to offer credit but is not listed on the FCA register.

What’s the difference between a credit broker and a lender?

When you apply for a loan directly with a lender, you are choosing a particular product with one specific company only. On the other hand, credit brokers are able to scan multiple lenders on their panel at the same time – this could be a more convenient way of searching for a loan.

When you apply directly with a lender you will undergo a hard credit search, which is an important part of understanding if a loan is affordable for your circumstances. A hard credit search can remain on your credit file for up to 12 months, and making too many credit applications over a short period of time can have a negative impact on your credit score.

Many credit brokers, including Viva Money, use a soft credit search to find you a loan. Soft searches do not affect your credit score and are only visible on your file to you and the company who carried out the check. If we can match you to a lender, and you go on to complete a full application, you will then need to complete one hard credit check.

Is Viva Money a credit broker or lender?

Viva Money is a credit broker, not a lender. We work with a panel of lenders who offer loans between £100 and £10,000, with repayment terms from 3 to 60 months, depending on how much you borrow.

Can I search for a payday loan with Viva Money?

Viva Money do not work with any lenders offering payday loans; however, we could be able to help you search for a short-term personal loan.
Short-term loans offer longer repayment terms. Spreading the cost of the loan over a term of 3 to 60 months could make the repayments more manageable as you won’t have to repay your borrowing all in one go.

You can search for a loan with Viva Money if you:

  • Are over the age of 18;
  • Are a UK resident with a UK address;
  • Have a UK bank account with a valid debit card; and
  • Have a regular source of income paid directly into your bank account.

Can I get a payday loan directly with a lender if I have bad credit?

While having a poor credit score can make getting approved for a loan difficult, it is not impossible.
Some lenders – including a number of those on the Viva Money panel - specialise in loans for those with less-than-perfect credit scores.

Not all lenders will accept applications from those with poor credit. If you do find a lender willing to offer you a loan, it’s worth noting that you could be presented with a higher interest rate, and you may not be able to borrow as much money as you’d like to.

How does the Viva Money process work?

We understand that your time is valuable which is why the Viva Money process has been designed to be as straightforward as possible.

  1. Once you have chosen your loan amount and term, our online form should take no longer than five minutes to complete.
  2. Using the information provided on your application, we will run a soft credit search with no impact to your credit score and scan our panel of lenders for a loan to suit you. This stage takes around 60 seconds to complete.
  3. If we’ve been able to match you with a suitable loan, you will be redirected to the lender’s website, where you can read more about your offer. If you decide to proceed, you will be required to undergo some further checks, including a hard credit search.
  4. If the lender is happy with the result of their additional checks, you will be sent a loan agreement. You should take the time to read this carefully. Once approved, your money could be sent the same day*.

*While some of the lenders on our panel can send your money on the same day your application is approved, the time it takes for the money to appear in your account will depend on your bank’s policies and procedures.

What happens if I’m no longer able to afford my loan repayments?

In this instance, you should contact your lender as soon as you can.
Remember, there is no shame in asking for help, and you will not be judged for your situation.
Your lender will appreciate the fact that you have been upfront and will want to work with you to put a plan in place moving forwards.

Where can I find money and debt management advice?

While financial stress can feel isolating, the reality is that money worries can happen to any of us at any time, and there is absolutely nothing to be ashamed of. Sometimes, life changes out of our control, and so does our financial security.

Viva Money have teamed up with debt charity StepChange to provide a free Money Health Check quiz. The answers you provide will generate suggestions on what you can do next to take back control. Taking the quiz will not impact your credit score.

Free, impartial advice is also available through sites such as MoneyHelper, Citizens Advice, and National Debt Line.