Skip to main content

Yes, it is possible to cancel your payday loan at any time. It is however important to know that you could be charged interest for the days that your loan is open. 

Harpsey is a broker which means you will not receive your loan funds from us. We work to match you with a direct lender who will loan you the money. The terms of your repayment therefore will be agreed upon with your chosen lender. 

These terms and conditions usually state that you can cancel your payday loan at any point, be that the day your loan was completed or a couple of weeks after you began your repayments. 

To cancel your loan, you are required to either call or write to your lender and usually pay off your loan in full or the value of the interest that has accumulated up to the point of cancellation. 

Certain lenders have what is known as a ‘cooling period’. This is a 24 or 48 period where you are able to cancel your loan without making a payment or having any interest accrued. Before agreeing to your loan, check the conditions of your contract that is presented to you after you have been approved. 


How Do I Cancel My Payday Loan?


There are a few simple steps to take if you wish to cancel your payday loan:

1. Contact your lender by email, in writing or by telephone using the contact details from their website. On their site they may also have the option to cancel your loan or click to pay off your loan in full.

2. As the payday loans gain interest daily (see how interest works), you might be required to pay off the interest that has been building on your loan. For example, if your loan has been open for 5 days, you may have to pay 5 days of interest on your loan before your loan is canceled and no longer active.

3. You will receive confirmation from your lender that your loan is canceled and that you no longer need to make further payments. At this stage it is worth contacting your bank to stop accepting repayments from the payday lender as often the repayment process is automatic. 



What Reasons Are There For Canceling My Payday Loan?


You Cannot Afford Your Repayments: Payday loans are considered an expensive form of loan due to their short-term nature and high interest rates. You may find the loan is too expensive to balance with your other bills and payments therefore you wish to cancel the loan in order to prevent falling behind on repayments and facing damage to your credit rating. 

You Have Sourced The Funds Elsewhere: When you apply for a payday loan you might have sent off many applications at one time and taken out multiple loans at once. If you have regained stability of your bills you may only require one of these loans open and decide to cancel any other loans you have.

You also might have been able to now borrow from family or friends and this type of loan can have more relaxed repayment terms and won’t gather interest. 

You Are Able To Repay Your Loan Early: If you have managed to pay off your emergency expenses such as a medical bill or housing repair, you could find that you no longer need your loan open, particularly as it will be gathering interest. You could therefore save on interest in the long term by paying off your loan early.

Further Research For Alternatives: Payday loans can be seen as a fast solution to your money problems, but with further research you might have found there is a better option for your situation such as a low interest credit card. 

Always check with your lender if you are thinking of changing the repayment terms of your loan in any way. In some cases there may be an early repayment fee. 


Will I Still Be Charged Interest After 1, 2 or 4 Days of Cancelling My Loan?


Some lenders may have a cooling period which means you can cancel your loan within 24 or 48 hours and there will be no fees attached. In most other cases your loan will have started to gain interest from the moment the funds are transferred to your account. 


Will My Credit Score Be Affected If I Cancel My Payday Loan?


As long as you have repaid your loan and there are not any overdue payments there will not be any negative impact on your credit rating.