The Lenders List compares a variety of new payday loan direct lenders and old payday loan lenders. New payday loan lenders are popular because customers like to see which new lenders are on the market. We list some of the newest lenders who offer payday loans with very competitive rates of APR and also instalment loans which are repaid over 3, 6 or 12 months. A great way to assess new payday loan lenders is by comparing their daily interest charge or cost per £100. The typical rate in the payday loan industry is 1% interest per day and then a cost of £130 for every £100 borrowed over 30 days. A payday loan lender that can offer you lower rates than this is very competitive indeed.

New payday lenders 2019 offer innovative products like SafetyNet and Pixie Loans which is similar to an online credit card but is in the same category as payday loans because you still get to borrow up to £1,500 and repay on your next pay date. Other reasons to favour new lenders include the introduction of the new price cap coming into effect in January 2015. The price cap will force payday lenders  to become competitive on price which is why the new lenders may have a better product offering than existing lenders.

The new price cap being introduced to the payday loan industry involved capping the daily interest rate at 0.8% per day which will make the price of a loan at £124 per £100 borrowed. This should reduce the cost of a standard payday loan and make the market more competitive. Since lenders will likely be charging similar amounts in the industry, to win over customers, they may have to offer better customer service or better rates.

It has been mentioned by the Competition Market Authority (CMA) that borrowers will save money by using PCW (price comparison websites). This is important because the CMA mention that borrowers in the UK may take out up to 6 payday loans a year but with the same lender because they get used to the convenience of just topping up their loan. However, trying out new lenders could save them on price and lead to over £100 worth of savings a year.

Best Payday Loan Lenders

Best payday loan lenders will share similar characteristics and this includes carrying out thorough checks and handling your information securely. According to The Lenders List, here are some key characteristics of best payday loan lenders:

Responsible Lending

Payday lenders must follow a responsible lending criteria to ensure that they providing an honest financial service to customers who can afford to repay. Following the notion of ‘treating customers fairly’ lenders are encouraged to carry out thorough credit and affordability checks when deciding who gets a loan. Responsible lenders will take into account numerous checks and they will not offer loans to customers who are experiencing financial difficulty. For more information, read our page on Responsible Lending.


This means that a good payday loan lender will show all the costs and repayments of their loans very clearly on their website. The payday loan industry is regulated by the Financial Conduct Authority (FCA) and responsible lenders who adhere to their ruling will clearly have all the costs displayed on their website and they will make sure that the APR is very prominent to see when applying. A customer should know exactly how much their loan will cost them when they apply and showing transparency on a lender’s website is a good characteristic of responsible lending.

Secure Information

A lot of the best payday loan lenders host their websites on secure servers. This means that the website starts with ‘https’ and it confirms that when a customer types in their details that they are handled securely. It means that the details you put in an application have a bit extra security, they are encrypted, making it harder for 3rd parties to access your personal records. Other ways to confirm that your details are safe are if there are lots of useful reviews from the likes of Trustpilot and if there is a ‘Verisign’ sticker on the lender’s website.

No Upfront Fees

With a number of brokers in the UK, you ideally want to apply for a lender who will not charge any upfront fees. When you are looking to borrow funds, the last thing you want is money taken out of your account especially if you are unsuccessful. At The Lenders List, we only feature lenders where it is free to apply and those who won’t take your email address and mobile number and spam you with thousands of messages and this is why they are the best payday lenders.