£500 loans are designed to give our customers the little extra financial push they need to deal with an emergency situation at hand. We try to make things as easy as possible for customers because we know when they come to us, they’re probably already going through something stressful.
Do Wizzcash Offer £500 Loans?
The quick answer, yes, we do! You can apply for payday loans with Wizzcash between £300 and £1000. Wizzcash give you a quick decision on your loan, helping you to move on with your life with as little disruption as possible.
Small loans like this have become extremely common; which could be a good thing, because customers know they have access to emergency funds when they need it. On the other hand, this does also mean the market has become extremely saturated and could be confusing to navigate. We believe in complete transparency and will explain the cost of your £500 loan as much as possible, before you commit to it.
It is always best financial practice to only borrow as much money as you need. Wizzcash are able to help customers who are experiencing a genuine financial emergency and need cash urgently, however, it is still important to us that you only borrow the money you need. Over-borrowing could be harmful to your financial security and credit score.
Interestingly, data shows that over the last year (June 2018), the average loan size for short term credit was £250 and the average amount payable was £413. This highlights that even applying for our minimum value loan (£300) would be over-borrowing and could worsen your financial situation, as you could be overreaching or over-committing to loans unnecessarily. A £500 loan might be an easy and round-number sum to borrow, especially when you are dealing with an urgent financial matter but are not 100% certain on how much the bill is going to come to. It is important to avoid this kind of estimating. You should always know how much you need to borrow and stick within your limits to ensure any loan is affordable.
To illustrate the risks of ‘rounding up’, the above data indicates that the total amount payable is approximately 1.65 times the average amount borrowed. For £500 loans, the total amount payable, based on this industry average data, would be £825. This is not necessarily how much it is going to cost to borrow a £500 loan from Wizzcash and even across the industry now, because interest rates change.
We have already shown you how much it costs to use these loans on an individual loan basis, but to highlight just how many people could be irresponsibly using small, payday loans you can look at the data for the whole industry. £1.3 billion was borrowed by UK customers between the year 1 July 2017 and 30 June 2018. The total amount payable was £2.1 billion, which is a 61.9% difference in borrowed and payable values. This highlights just how important it is to be responsible with your borrowing; a £500 loan may not seem like a big commitment, but financial products should never be used frivolously or impulsively. They are incredibly helpful, especially when you are facing a breakdown or a bill. Unfortunately, many people could not keep everyday life running without financial help every now and again, here at Wizzcash, we just want consumers to understand the consequences and the bigger picture when it comes to borrowing.
Using A £500 Payday Loan
At Wizzcash, we will not impose a restriction or limitations on what you can or should use your £500 loan for, as this is not within our remit as a lender. However, we strongly recommend that your loan only be used to help yourself resolve a financial emergency. This is because payday loans of any value are not a sustainable source of credit and should not be considered a long term solution.
We talk about best financial practices and offer insights over on our blog. We regularly propose that neglecting your finances or mishandling credit could result in needing a £500 cash injection to help you deal with the situation at hand, for example:
- £500 loans could be used to pay an annual gym subscription you forgot to cancel and were not prepared for because you don’t go!
- Research also indicates that households spend more than £500 – £800 more than the average month at Christmas, perhaps resulting in a shortage in December or January for paying regular bills because of improper budgeting.
To ensure you don’t need to apply for short term credit in the future, have a read of our blog and actively get on top of your finances as soon as possible.
£500 Loans – How To Apply:
Whether you are looking for a £500 loan or a £1000 loan (our top limit), our lending criteria remains the same. We run affordability checks to ensure our repayment terms are manageable for you. It’s important to us that we are a responsible lender, and although we want to help our customers, we do not want to make a financial situation worse.
To apply for £500 loans, you will need to complete our online form. We will tell you how much it will cost to borrow money from us and everything else you need to know to make an informed decision about your credit.
To borrow from us, you will need to:
- Be over 18 years old
- Be a UK resident
- In employment
- Able to show £750 take home every month. This helps us determine that you are realistically able to meet the repayments of a £500 loan, without missing your other financial commitments and bills.
What Are The Repayment Terms?
Not only do we provide flexible loans in which you can select the exact amount of money you wish to borrow, but we also offer repayment terms that could be more realistic and affordable for our customers.
£500 loans are repaid over three months and will always be equally divided, so you don’t face a balloon payment or a surprise that you can’t afford on the last repayment date. This will include the interest on your £500 loan.
Wizzcash will automatically take the repayment from the bank account you provided us with on the due dates, using a continuous payment authority system. This means less hassle for our customers, but it is really important that you have the funds available in your account on that day as missing a payment will negatively impact your credit score. Don’t worry, we will make it really clear the days your payments are due.
Unlike many other lenders, we do not charge an early repayment penalty. Moreover, if you are unable to meet the repayments on the dates they were set out for you, it is important you get in touch to discuss the situation. Wizzcash may be able to help by working out a payment plan or coming to an agreement.
Can You Apply for a £500 Loan If You Have Bad Credit?
If you have a bad credit score then you can still apply and possibly be accepted for a £500 loan with us. If your credit score is less than desirable, then you will not automatically be disqualified from securing a loan with us, but we do have minimum requirements. We do take multiple factors into account when making decisions about an application.
As a responsible lender, working in line with FCA regulations, we also strive to be completely transparent with our customers, providing all the information they need before they apply for £500 loans or any financial product with Wizzcash. For more information, get in touch with our team to discuss your needs!