If you find yourself in desperate need of cash, it’s not a problem! Loans are just around the corner when you need them. It’s even easier to get one when you have a good credit history. On the flip side, it might be a challenge for you if your credit rating is not that impressive.
You’ll find many loans in the market that are specifically designed for those with poor or bad credit. Majority of these poor or bad credit borrowers would opt for short-term loans such as payday loans, and lenders of these loans are everywhere!
Important to note though that the interest rate of payday loans are insanely high. This is understandable because the borrowers are considered high-risk. This is also in exchange for the fact that these loans are quick and easy to obtain.
On the bright side, these ridiculously high-interest loans are better than having no option at all. They are a huge help when it comes to dealing with urgent expenses.
If you are considering a payday loan, you might want to check out one of UK’s top payday loan lenders – Wonga.
A sneak peek at Wonga
Founded in October 2006 by the entrepreneur and investor Errol Damelin, an artist and software engineer Jonty Hurwitz, the Wonga brand is a trading name of WDFC UK Limited. For some time, Wonga became the market leader in the payday loans segment.
Did you know that the name ‘Wonga’ a British slang word used in some parts of the country since the 1980s? It derives from a Romani dialect word for ‘money’. Because of extensive advertising campaigns, there was a time when the Wonga brand became synonymous with ‘payday loans’.
Wonga has always been best known for its operations in the UK. With its many innovations, it was able to become the leading payday loans lender in just a few years. This was the time when this industry was still only just emerging in the early 1990s.
Over the past decade, Wonga’s growth prompted in many ways much of its further expansion in the UK’s payday lending industry. After dominating the UK market, Wonga has also expanded its operations overseas in the recent years.
Wonga was behind many important innovations that helped modernise the world of online lending. These technologies include interactive user interfaces that provide customers with real-time visual quotes on loan costs, and risk analysis software that allows credit checks to be virtually automated.
With Wonga’s innovations, the loan approval process became much shorter. They were also one of the first payday companies to develop smartphone and tablet apps.
Wonga has an online application that allows applicants to choose their amount and select a repayment date. A detailed repayment schedule and total cost of the loan is provided before the application is completed.
Once the applicant confirms the loan, these details are finalised. No paperwork is needed for you to send in or phone calls to take. Pressing ‘I accept’ on the loan agreement is equivalent to signing the document. Once this is completed and processed by Wonga, you’ll have your funds within five minutes, depending on your bank.
If you want to repay your loan early, you can do so and there is no charge. Just simply log in to your account on the website and follow the instructions.
Wonga Short Term Loan
Wonga has a range of financial product offerings and among them is their short-term loan. You can borrow from £50 to £1,000 that you can repay in a one-off payment over 35 days at a representative APR of 1,509%. The interest rate of their short-term loans is charged at 0.8% per day.
New customers are allowed to borrow up to a maximum of £400. If they can repay this on time, they are allowed to borrow up to £1,000 for their next loan.
If you still need some extra money, you may be able to top up your current loan while keeping the same repayment date. You can top up in increments of £1 with a minimum top up of £10. You are only allowed to top up a loan once a day, and for three times only.
Any missed payment will incur a £15 late payment fee, which is payable three days after the repayment date. Interest does not accrue on the late payment fee. Default interest continues to be charged at 0.8% per day following the repayment date up to a maximum of 30 days. You’ll never have to pay back more than twice the amount you borrowed.
Wonga 6 Month Flexi Loan
Another product offering of Wonga is their instalment option called Flexi Loan. Flexi Loan amounts are from £200 to £2,000 that you can repay in six monthly repayments. Minimum term is 164 days and the maximum term is 188 days, at a representative APR of 1,086%, and interest is charged at 0.75% per day.
New customers can borrow up to a maximum of £600. If they repay this on time then they may be able to borrow up to £2,000 on their next loan. Default interest continues to be charged at 0.75% per day following the relevant repayment date.
Wonga 3 Month Flexi Loan
Wonga also has a product offering with the instalment option called Flexi Loan for three months. This Flexi Loan amounts range from £150 to £1,500 that can be repaid in a minimum term of 63 days, the maximum term of 97 days at a representative APR of 1286%, and the interest rate is 0.8% per day. New customers can borrow up to a maximum of £500 but can be allowed to borrow the maximum amount of £1,500 on their next loans if they repay the first loan on time.
Wonga is one of the leading payday lenders in the UK, so it’s definitely a trustworthy loan provider. It’s the nature of payday loans to have an extremely high interest rate. But with Wonga, this is being compensated by the convenience and speed of their service. Everything is completed online and once you’re approved, you can have the money in your hands within minutes. You can also settle your loan early without any extra charges.
It is important, however, to be responsible for your repayments as the interest rates and late payment charges can bulk up on your loan. If you can make repayments on time, you can borrow more on your next application. Doing so can also help improve your credit rating.