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Payday loans

Are you looking for a loan to tide you over until you get paid? When disaster strikes and you need cash to cover the damage, a payday loan could get you out of a tight spot. But they come with risks too, so it's a good idea to read up on the alternatives before making any decision with your money.

Unlike payday loans, our short-term loans allow you to spread the cost of your loan and lower the risk of being unable to repay. You won't need to worry about any hidden charges or fees either.

Find out below how payday loans work, what to be wary of and why a Dot Dot alternative could be a better option.

What are payday loans?

Payday loans are a quick source of cash designed to help people out in emergencies or cover short-term expenses. This could be anything from a broken-down boiler to car repairs or an unexpected bill.

You can apply for payday loans online or through payday lenders on the high street. Most will send you the money in full then give you until your next payday to pay them back. You might also see them called 30-day loans.

Payday loans are usually quick to go through but also come with high interest rates. You'll need to be prepared to repay the full amount as soon as your next paycheque lands. If you can't, for whatever reason, you're likely to face late payment fees. These costs can make the loan even more difficult to repay.

What are the risks of payday loans?

Payday loans can help you out of a difficult situation if you're confident you can pay them back. But they've earned a bad reputation over the years and could make things even tougher if you're not fully aware what you're getting into.

You'll need to make sure you have enough money to cover the loan repayment plus all your usual outgoings like rent, utilities and food. But life doesn't always go the way we expect it to, and it's easy to come up short at the end of the month. As many as 67% of payday loan users fall behind on or miss their credit repayments.

On top of late payment fees from the lender, you could end up going overdrawn and being charged by your bank. Alternatively, you could be offered a 'rollover' to give you another month to repay – but these usually come with extra costs too. Many find themselves having to borrow again the next month until they're stuck in a constant cycle of mounting debt.

UK payday lenders have made headlines in the past for their crippling rates and hidden fees. The Financial Conduct Authority (FCA) has since introduced price caps to protect customers, and the market is nothing like it used to be. But even the best payday loans remain a risky option.

Thankfully, there are alternatives...

Payday loans vs short-term loans

You can use a short-term loan to cover exactly the same kinds of costs as payday loans. But while payday loans are generally repaid in full on your next payday, short loans are repaid in smaller monthly instalments. We offer short-term loans with repayment terms of three, six and nine months, for example.

Problems can crop up with payday loans when other unexpected costs get in the way. Think MOTs, insurance renewals or medical bills – any one of these could leave you unable to repay the full amount. However, with smaller instalments you'll be in a better position to deal with surprises.

There's also no risk of late payment fees or hidden charges with our short-term loans, so you should have a better chance of getting back on track if you do fall behind.

And while the speed and ease of same day payday loans can help when times are tough, it's good to know that the application and funding for short-term loans can be just as quick.

Why choose Dot Dot?

FCA research shows payday loan users have lower confidence in lenders than other UK adults. It's no surprise when you hear stories of irresponsible payday loan companies - but we do things differently.

Our payday loan alternative makes things simple, straightforward and convenient from day one. Here are six reasons to be confident in choosing a Dot Dot short-term loan:

  • Apply for between £200 and £1,000 online in minutes and receive the loan on the same day once approved
  • Spread the cost in manageable repayments of three, six or nine months, and pay your loan off early if you want to
  • See all your costs upfront with no nasty hidden charges or late payment fees
  • We're committed to responsible lending and are a registered member of the Consumer Finance Association
  • Our customers rate us 'excellent' on the independent review site Trustpilot
  • We're a direct lender rather than a broker, so you'll always know who you're dealing with

How do Dot Dot's loans work?

Our short loans can be used for the same reasons as payday loans but come with a lower level of risk.

They're all unsecured, which means you don't need to offer your home or other valuables to back them up, as you might with other loan types. You won't need to find a guarantor either. Simply choose how much you want to borrow and see how long you'll have to repay it using our loan calculator.

You'll see an estimate of all your costs before you apply. If everything looks good, we'll check things like your credit score, income and outgoings to make sure you can afford the repayments.

From here, we'll agree all your loan costs upfront, then collect repayments automatically to save you hassle. You can also check everything online through our handy customer portal.

It's totally normal to have questions when it comes to money. Head to our FAQs or contact our friendly team. They'll be happy to help.

Do I qualify?

If you need cash in an emergency, don't assume your only option is a high-cost payday loan. We offer a different kind of loan that's much easier to manage. You can apply for one of our short-term alternatives if:

  • You're over 18 years of age
  • You live in the UK and can give address details
  • You have a job
  • You've got a valid email address and mobile phone number
  • You can give bank account and debit card details

We'll review your application and give you a decision based on your personal situation. We don't expect everyone to have a perfect credit score. We simply try to offer loans that our customers can afford.

How much can I borrow?

You can apply for a short-term loan of between £200 and £1,000 with Dot Dot. This is a similar range to most payday loans.

If you need a higher amount you can apply for a long-term loan of between £1,500 and £4,000. Long-term loans tend to be used for projects such as home improvements or weddings. You can pay these back over 18 to 48 months.

How do the repayments work?

You'll spread the cost of your Dot Dot short-term loan over three, six and nine months depending on how much you borrow. This gives you more room to breathe than typical 30-day payday loans.

We'll collect repayments directly from your nominated bank account each month on an agreed date via Direct Debit. If you need to discuss alternative payment methods, please get in touch with us.

The risk of falling behind on your repayments is lower than with payday loans. Things can still change, but if you don't think you'll be able to pay an instalment as planned it's best to let us know as early as possible.

We'll never charge you a late payment fee, but missing payments could harm your credit score. Our team will help you find a way forward and put together a new plan.

Are there any extra fees to worry about?

When you've got money worries the last thing you want is hidden charges and fees making your situation worse. Some UK payday loan lenders use these to bump up the total amount you repay - but they're not us.

We'll never charge you any extra fees with our payday loan alternative, and you'll know all your loan costs from the start.

What's the interest rate?

Our interest rate is fixed upfront. Having a fixed interest rate means the interest you pay won't change, whereas variable interest rates go up and down from month to month.

Our fixed-rate loans are easier to budget for as the amount you repay will always be the same.

Apply for our payday loan alternative today

Have you got extra costs to cover before your next payday? Our quick and easy loans could get you out of a tight spot without putting you under extra pressure.

See how much yours could cost with our loan calculator. If everything looks good, select 'apply now' to fill out your application. We'll get back to you as soon as possible to take it from there. Simple.

Apply now

Short term loan

Representative Example

Borrow £300 over 6 months with monthly repayment of £92.97. Total amount payable £557.82. Interest rate 237% p.a. (fixed). 757.7% APR Representative.

Long term loan

Representative Example

Borrow £2500 over 24 months with monthly repayment of £198.68. Total amount payable £4768.25. Interest rate 71.1% p.a. (fixed). 99.9% APR Representative.

Loans from £200 to £1000

Apply now

Representative 757.7% APR

Loans from £1500 to £4000

Apply now

Representative 99.9% APR

Short-term loans: 757.7% APR Representative Long-term loans: 99.9% APR Representative