How are payday loans different from other loans?

The main difference between payday loans and other loan types such as a personal loan, mortgage, or consolidation loan is that they are low value and have a short repayment period. For example, you wouldn’t borrow more than £1000 with a payday loan (ideally) and you’d pay it back within a few weeks. However some lenders, such as Wizzcash, offer longer, flexible payment options for payday loans too.

Payday loans also have a higher annual percentage rate, or APR, when compared to longer-term loan options.