Payday Loans – Why One Stop is The Best Alternative

The One Stop Money Shop offers a viable alternative to payday loans, offering longer term loans that are repaid in instalments to give you added breathing space and flexibility.

Payday loans can offer quick financial relief, but often come with high interest and short repayment periods often creating over dependency and putting borrowers into a cycle of debt.

At The One Stop Money Shop, we provide a more manageable solution, helping you handle unexpected expenses and every day emergencies.

We are delighted to offer loans ranging from £400 to £2,500 repaid over 6 to 24 months in equal monthly instalments which you can afford to repay.

Our application process is completely online and can provide you with an indicative quote and transfer funds to your bank account on the same day.

payday loans

What Is A Payday Loan?

A payday loan is a short term, typically high interest loan intended to immediately cover urgent expenses until your next paycheck.

Typically, these loans are used to manage immediate financial needs such as unexpected bills, car repairs, or essential household expenses.

Payday loans are designed to be quick and easy to obtain, often without extensive credit checks, making them accessible to individuals with not so great credit histories.

However, whilst payday loans can provide timely financial relief, they come with several drawbacks:

High-Interest Rates

Payday loans often come with high interest rates, making them one of the more expensive borrowing options available.

Short Repayment Periods

Payday loans usually require full repayment on your next payday, which can be as soon as two weeks. This short repayment period can strain your finances and lead to additional fees if you can’t repay the loan on time.

Risk of Debt Cycles

Many borrowers find themselves taking out new payday loans to pay off existing ones, leading to a cycle of debt that’s hard to break. This can result in mounting fees and interest, making the original financial problem even worse.

How Do Payday Loans Work?

Payday loans offer an entire loan to the customer paid upfront in one lump sum. Typically consisting of a few hundred pounds, the loan is designed to ease an immediate cash requirement such as paying for an emergency, household repair or important bill. The loan is typically repaid on your next payday in full, including the full loan amount and interest, hence the name ‘payday loan.’ The criteria for being approved for a payday loan can be subject to credit checks, income and affordability and the process is often streamlined to provide instant decisions and same day funding. If you cannot keep up with repayments, there are late fees, penalties and added interest that may apply.

How Is The One Stop Money Shop Different To Traditional Payday Loans?

The One Stop Money Shop is proud to offer a payday loans alternative, offering larger loans ranging from £400 to £2500 and repaid over 6 to 24 months in monthly instalments at more affordable and competitive rates.

Whilst we originally started as a broker in 2002 and then as a direct lender in 2005. We saw first hand how payday loans were putting pressure on customers to make repayments.

We realised that our longer term instalment loan product provided customers with far more flexibility and was a better financial product for those looking for emergency funds or looking to pay an important bill.

When comparing rates, our loans are more affordable and offer more help to customers by allowing them to repay over several months.

The One Stop Money Shop – Representative Example: £400 loan repayable over 6 months £115 per month total amount payable £690. Representative 644.98% APR fixed

Competitor Payday Loan Company – Representative Example: £400 loan repayable over 6 months £133.33 per month total amount payable £799.98 Representative 1289.1% APR fixed

The One Stop Money Shop is FCA Authorised

We are an FCA-authorised direct lender under registration number 713424.

The One Stop Money Shop adheres to strict regulatory guidelines to ensure transparency, fairness, and responsible lending practices.

We prioritise the financial well-being of our customers by providing clear loan terms, transparent fees, and secure handling of your personal information.

Our commitment to customer satisfaction and ethical lending has earned us a reputation for reliability and trustworthiness in the lending industry.

What Are Payday Loans Used For?

Pay for emergencies
Cover household repairs
To pay rent
To buy groceries
To pay household bills
To pay for weddings
To pay for funerals
Car repairs
Medical bills
Pet bills

What Are Payday Loans Not Used For?

To pay off other loans
To pay for luxury holidays
To pay for material items and designer clothing
To help borrow money on behalf of someone else like a sibling, spouse or friend
To start a company

Do You Offer Payday Loans For People With Bad Credit?

At The One Stop Money Shop, we consider applicants with varying credit histories including those in need of loans with bad credit or poor credit. While we do conduct credit checks as part of our application process, having bad credit does not automatically disqualify you from obtaining a loan. We review each application comprehensively, taking into account your current financial circumstances and your ability to repay the loan.

What Is The Criteria For Applying?

To qualify for a loan with The One Stop Money Shop, you need to meet some basic requirements:

  • You must be a full time resident of the UK 

  • You must be at least 25 years old

  • You should be employed and earn a regular income

  • Ability to make monthly payments

  • You must have a valid bank account in the UK

  • You need an active mobile number and email address in the UK

Once you complete our loan application, if it gets approved, you’ll receive an online loan agreement that outlines the details of your loan, including the amount you’re borrowing, the loan term, and the interest rate.

As an authorised firm regulated by the Financial Conduct Authority (FCA), we must conduct credit checks. These checks help us review your recent credit searches and transactions to ensure we don’t provide you more finance than you can handle.

In addition, we perform affordability checks to match the requested loan amount with what you can comfortably repay. We carry out checks automatically and online, so you don’t have to send us any documents or provide additional information. We strive to make the application process as simple as possible for you.

Is The One Stop Money Shop a Payday Loans Direct Lender?

Yes, we are a direct lender, which means that we are responsible for the entire loan process from start to finish.

Your application will be made online using our form, we will provide a decision and give you a loan offer and transfer funds to you upon successful approval. We will be responsible for all repayment collections and future correspondence by email, phone or text.

You can have peace of mind that you are not working with any other brokers, third parties or middleman and we will be your direct lender every step of the way.

Is a Payday Loan Right For Me?

A payday loan can offer an important injection of cash if you have a pressing bill or expense to pay. Whilst the funding is typically fast, it is important to understand the cost of a payday loan is higher than the average financial product and there are implications for non-repayment such as added fees and a negative impact to your credit score.

As a viable alternative, we are passionate about helping borrowers make smart decisions and it is important to consider cheaper alternatives such as borrowing money from family and friends, credit unions and speaking to a debt charity if you need professional assistance.

However, if you feel that you do need a loan fast, we are pleased to offer you a short term loan that is repaid over 6 to 24 months and we are able to provide funds on the same day of approval.

How Can I Apply For A Payday Loan Alternative With The One Stop Money Shop?

To get started, simply click on the “Apply Now” button provided.

The application process is entirely online, so you can apply anytime, whether it’s during the day, at night, or even on weekends. All you need is a device with internet access, such as a desktop computer, laptop, mobile phone, or tablet.

During the application, we’ll ask you for some basic information like your name, address, age, income, employment details, monthly expenses, and bank account information. This helps us ensure we have the correct information to send the funds to your account if your application succeeds.

Rest assured, there are no upfront fees for applying, and we take the security and privacy of your information seriously. Your data is securely stored on our website, so you can feel confident that it’s safe with us.

 

Useful Guides

Can I Get a Payday Loan With No Credit Check
How Do Credit Checks Work?
What Is APR and How Does It Work?
What Loans Are Available To People With Bad Credit Histories?
When Should You Use and Not Use a Payday Loan?

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Frequently Asked Questions

How Quickly Can I Be Approved?

We can approve your loan sometimes immediately and sometimes in a few hours once further checks have been made. Once your loan application is approved and has passed our checks, we strive to transfer the funds to your bank account within 1 hour. This quick turnaround time ensures that you can access the money you need promptly and address your immediate financial concerns without delay.

How Do Repayments Work?

Repayments are collected automatically by our team using a process called continuous payment authority, which is very similar to direct debit. Your debit card is tokenised during the application and we will collect the repayment amount on your scheduled repayment date every month (usually the last Friday of the month or a specific day such as the 25th).

All collections are done automatically and there is no need to call us, go to the bank or make a manual repayment.

You will receive a repayment reminder by email and SMS on the days leading up to each repayment.

For any late repayments, there are late fees and added interest that may apply.

How To Check If a Payday Lender Is Legit

To check if a payday loan company is legitimate, you can check the FCA register to see their current FCA authorisation status and licence number.

Will Applying For a Payday Loan Impact My Credit Score?

Applying for a short term loan with The One Stop Money Shop will not affect your credit score or your ability to be approved for other loans or financial products.

We carry out a soft search which does not affect your credit file.

If you have been successfully granted a loan and you fall behind on repayments, this will negatively impact your credit score.

What Happens If I Cannot Repay My Loan?

If you cannot repay your loan, you may incur late fees and this could negatively impact your credit score. If you are having trouble repaying your loan, please contact us by phone on 01924 377771 or email us at [email protected] to discuss your options.

What Are Other Payday Loan Alternatives?

Other cheaper payday loan alternatives include borrowing money from a credit union which is a non-profit organisation offering very low cost loans at 36% APR.

You can consider borrowing money from family and friends who will typically offer you a 0% loan and no credit checks either.

If you need professional help with your financial situation, consider reaching out to charities such as StepChange.org or Citizen’s Advice Bureau.