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Looking for an alternative to payday loans?

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  • You could consider a credit card instead
  • Guaranteed credit limit
  • Check your eligibility with no impact to your credit score
Check my eligibility This won't affect your credit score

Representative example: Amount of credit £1,200. Interest rate: 34.0% pa (variable) Representative 34.0% APR (variable)

What is a payday loan?

Payday loans are designed to be taken out over a short period of time, and are usually relatively small loans which need to be repaid within weeks or months rather than years. Unexpected emergencies might come up, where you find you need money at short notice. For example:

  • A problem with your car that you need to get fixed in order to get to work or get your family from A to B.
  • Your boiler has broken and you’ll be without hot water or heating if you don’t replace it.

118 118 Money is not a payday loan lender, but if you are looking for an alternative to a payday loan, then you could consider one of our credit cards instead.

Apply for a credit card from 118 118 Money with confidence
Use our eligibility check to find out what credit limit we’ll offer you before you apply, without affecting your credit rating!
Check my eligibility This won't affect your credit score
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Why use a credit card from 118 118 Money as an alternative to a payday loan?

If you’re looking for an alternative to a high interest payday loan, a credit card from 118 118 Money could provide the answer:

Get a credit limit of up to £1,200.

Repay what you borrow in full or in instalments to suit you, as long as you make your minimum repayments. If you can, you should always pay off more than the minimum repayment.

Interest-free period on cash and purchases of up to 51 days when you pay your full balance each month.

Fee free – we do not charge any fees, however, third party vendors may have their own charges. An example of this is an ATM where a usage fee could apply.

You can check your eligibility with no impact to your credit score.

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Want to apply for a credit card?

  • Alternative to a payday loan
  • No fees*
  • Check your eligibility with no impact on your credit score
Check my eligibility *We do not charge any fees. However, third party vendors may have their own charges. An example of this is an ATM where a usage fee could apply.

Why take a credit card from 118 118 Money?

A credit card from 118 118 Money may be a better option to fit your short-term cash flow needs than borrowing from payday lenders. If you take out a credit card with us and repay your full balance each month, by the payment due date, it will be interest-free. If on the other hand, you do need to stretch your payments, you’ll pay the interest rate set on your credit card. It should be noted that if you decide not to pay off your balance in full each month, and you want to repay over a few months or more, you will still need to make the minimum repayment due by the payment due date, every month. Don’t forget, if you are only making the minimum repayment then it will take you longer to repay your borrowing and it may cost you more to pay off your account balance.

If you do take a credit card, the APR on our credit card is lower than that on traditional payday loans. You’ll also benefit from the fact that there are no hidden fees or charges with a credit card from 118 118 Money; but you should be aware that third party vendors may have their own charges such as cash machine charges which charge you to use them.

Don’t just take our word for it. If you’re interested in an alternative to a payday loan, our Trustpilot score is a good indication of how our customers feel about us – currently 4.7 stars out of 5 based on real customer reviews. (May 2021)

What is a credit check and will 118 118 Money do one?

A check on your credit history is done to look at your repayment behaviour, to see how much credit you currently have, and if you usually make your payments on time. It gives lenders a view on whether or not you meet their lending criteria. Credit checks are not only carried out by lenders, but they are also carried out when you apply for a new utility supplier, a new mobile phone contract, or even a new letting agent or landlord.

You can sign up with a company which compiles credit reports to see what your own credit score looks like, before you apply for any new products. It is important to regularly check your credit file to make sure there are no inaccuracies. More information can be found on our loan tips ‘check my credit report’ page.

When you apply for a credit card from 118 118 Money a credit check will be done when you complete the full application. However, you can see if you’ll be accepted before you apply with our eligibility check for credit cards – this won’t affect your credit rating.

What if I need to check my credit card balance or have a question?

A benefit you’ll have when taking out a credit card from 118 118 Money as an alternative to a payday loan, is being able to log in to manage your account whenever you want to.

If you do need to speak to us about anything at all, our Customer Service team are available from 8am – 7pm Monday – Saturday, 9am – 5pm on Sundays and Bank Holidays. You can reach them on 08000 118 222

 

Apply for a payday loan alternative from 118 118 Money

Want to apply for a credit card with 118 118 Money? You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

Read what our customers think about us

Payday Loan Alternative FAQs

There are still a number of lenders offering short term loans and payday loans. These are exactly what they say, loans which are taken over a short term of a few months and usually allow customers to borrow smaller amounts of money from £100 - £1,000. 118 118 Money does not offer pay day loans – our loans are repayable over 12 – 36 months. If you are looking for an alternative to a payday loan, then you could consider a credit card instead – try our eligibility check to find out what credit limit we’ll offer you before you apply, without affecting your credit rating.

Payday loans allowed borrowers to borrow an amount of money and pay it back over a short term, usually at a high APR. The FCA (the UK’s financial services regulator) put measures in place in 2015 to limit the interest and fees charged by high cost short term lenders . These changes meant borrowers could find cheaper loans, with better affordability assessments. 118 118 Money is not a payday lender, nor is it a high cost short term lender.

If you’ve had a payday loan, paying on time and in full when your payments were due could have had a positive impact on your credit score. However, even if you have paid on time and in full, lenders may perceive payday loans differently as part of their lending criteria.

A payday loan is not considered to be exactly the same as a personal loan because they are usually small loans repaid over much shorter term of a few months, whereas personal loans are usually for £1,000 or more and repaid over a year or longer.

As above – just use our eligibility check – if you’re accepted you’ll just need to provide some more info – everything is online, so if we need any documentation from you, you’ll be able to share this with us via your mobile, tablet or laptop.

If you take out a our credit card as an alternative to a payday loan, based on a credit limit of £1,200, our current interest rate is 34.0% pa (variable) and our Representative APR is 34.0%.

If you are eligible, you’ll usually receive your credit card and pin within 3 – 9 days. For your protection, these will arrive separately.

The Money Advice Service has more information on the options available to you here. This includes details of things such as asking for a pay advance, using your authorised overdraft and borrowing from a credit union as well as other suggestions.

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Ready to apply for a credit card from 118 118 Money?

You can try our eligibility check first to see if you’ll be accepted before you apply – and it won’t affect your credit rating.

118118Money.com