Loan Costs
What you'll pay, what you'll never pay, and the most a loan could ever cost you – set out plainly, before you apply.
Interest – and nothing hidden
Loans through Cheque Centre cost you interest, and a late fee if a repayment is missed. That's it. No partner lender on our panel charges upfront costs, and if one ever tried, we'd remove them.
What you pay
- Interestshown in your agreement
- Late fee, only if you miss a repayment£15 at most on capped loans
What you never pay
- Application or arrangement fees£0
- Admin fees£0
- Transfer fees to send you the money£0
- A fee to Cheque Centre£0
Our service is completely free
You pay nothing to Cheque Centre – not to apply, not if you're accepted, not ever. We earn a commission from the partner lender only if we're able to arrange a loan for you. If we don't arrange you a loan, no lender pays us anything. The only exception is if you choose to respond to one of the optional adverts from other lenders that you may see if we can't find you a lender.
The most a loan could cost you
Each partner lender sets its own rate, so we can't tell you the exact price until you apply – your lender will show it to you before you sign. What we can tell you is the worst case. Most short term loans are covered by the FCA's price cap for high-cost short-term credit, and on those loans no lender can charge more than this:
| If you borrow | Most you can be charged per day | Most you'd ever repay in total |
|---|---|---|
| £100 | 80p | £200 |
| £250 | £2 | £500 |
| £500 | £4 | £1,000 |
| £1,000 | £8 | £2,000 |
| £2,750 | £22 | £5,500 |
These are legal maximums on loans covered by the price cap, not typical prices – your loan may well cost less. The daily figure applies to what you still owe, so it falls as you repay. Loans over 12 months aren't covered by the cap, but those offered by our partner lenders currently have APRs well under 100% – so their interest stays within these limits too. Whatever your loan, check the total repayable in your agreement before you sign.
APR, in plain English
The APR – annual percentage rate – shows the cost of borrowing over a year, including interest and any compulsory fees. It's designed to help you compare loans, but it has limits:
- "Representative" APR
- The rate at least 51% of people accepted through an advert can expect to get, or better. You might be offered a higher rate, so look at the rate in your own agreement.
- Short loans can look extreme
- APR imagines the loan lasting a year, so a loan repaid in weeks can show a huge APR even when the cost in pounds is modest. Our payday loans page shows why.
- Pounds matter as much as percentages
- A longer loan can have a lower APR but cost more in total. Always compare the total you'll repay, not just the APR.
If you miss a repayment
What happens next is set by your partner lender, and their loan agreement is what counts – so read it before you sign. In general:
- Contact your lender straight away if you think you'll miss a payment. Lenders must treat customers in financial difficulty fairly, and many can agree a short delay or a payment plan.
- On a capped loan, the late fee can't be more than £15, interest on the overdue amount can't be charged at more than your normal rate, and you'll never repay more than double what you borrowed.
- Missed payments are usually reported to the credit reference agencies, which can make it harder and more expensive to borrow in future.
Try your bank first
Our loans cost more than a personal loan from a high street bank or building society. If you think your bank might accept you, try them first – it will almost always be the cheapest way to borrow, and could save you hundreds of pounds. A local credit union is worth a look too.
Many banks now have an eligibility checker that uses only a soft search. A soft search doesn't affect your credit score, so checking with your bank first won't harm your chances with us.
If your bank can't help, come back to us and let us search our partner lenders for you. Our partner lenders consider many people that banks turn away.
Want to know more? See how it works, or compare our loans.
Representative example: £1,500.00 borrowed for 12 months. Monthly repayment is £154.12, total repayable is £1,849.47. Total cost of credit £349.47. Representative 49% APR. Credit broker not a lender. All loans are subject to status and only available to UK residents over the age of 18. Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk
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