Compare Debit Card Loans
Debit card loans allow you to borrow money and the funds are transferred to your debit account and payments are made through your debit account too. Our comparison table above shows all the debit card lenders that we work with because in order to borrow up to £2,500, you need to have a debit card. The debit card loans we feature come in the form of a payday loan or instalment loan. The entire application and funding process is handled online so the lenders featured above do not handle transactions by credit card, cash or cheque.
How do Debit Card Loans work?
The way a debit card loan works is very simple. Select the lender of your choice and you will be directed to their website where you can make an online application. You will be asked to fill in a few simple details regarding your name, date or birth, residence, employment, salary and finally your debit card details.
With any given lender, you will be required to enter your sort code and account number and this is where your funds will be transferred to if your application is successful. In addition, you will be required to provide you full 16 digit card number, expiry date and CVV security number because this is how your payments will be collected by the lender.
As soon as you apply, no fees or money is taken out of your account. The lender ‘tokenises’ your account by taking a few pence and then sending it back and this checks that the account is truly yours. Your debit card is then set up on something called Continuous Payment Authority (CPA), which means that the lender can access your account on your pay date to take collection. The benefit of this is that your repayment automatically comes out of your account so you don’t have to set up a direct debit or post a cheque. In the past, lenders were able to access your account and take payment as many times as they wanted but new FCA regulation has limited this to two collection attempts per day.
All the lenders featured our Quiddi Compare have been fully approved by the FCA and our own personal criteria to ensure that they are responsible lenders. The lenders displayed will not take any unsolicited fees from your account and your data will not be forwarded to any third party companies without your knowledge.
What is the criteria for a Debit Card Loan?
When applying for a debit card loan, the general criteria is that you must be:
- over 18 years of age
- living in the UK
- in full time or part time employment earning more than £750 per month
- working mobile phone
- have a working debit card
After filling in your details on the lender’s website, your application will be run through a series of checks including credit checking and affordability measures. The credit checks allow the lender to see how well you have paid previous forms of credit and loans in the past and how likely you will be able to pay this one. The affordability checks try to determine whether you can afford to repay how much you have tried to borrow. The lender needs to carry out sufficient affordability checks otherwise you may borrow too much and be unable to repay. Typical affordability procedures including asking for pay slips or bank statements to confirm salary and employment.
Being a repeat customer may increase your chances of being accepted if you have previously repaid on time. This is because your ‘trust rating’ with the lender increases and depending on your affordability, you may also be able to borrow more than your first loan.
If you debit card loan has been approved, the funds are usually transferred to your debit account on the same day, with some lenders offering money in less than an hour.
How does repayment work for a debit card loan?
Repayment is typically on a monthly basis. In your application, you state what date in the month that you get paid from your employer and this is when the lender will collect repayment from your account. The lender wants to collect your payment when you have money in your account and this is generally the customer’s pay date. You will always receive emails on the days leading up to each repayment that there are no surprises when you check your account.
If you ever wish to clear your debts and repay your loan early, you can do so – simply contact the lender beforehand via phone or email. Since the loan is charged on a daily interest rate, the sooner you repay your loan, the cheaper it will be.