Payday Loans: Financial Jargon Buster

Thinking of taking out a payday loan? Get the lowdown on some of the key terms around payday loans with this guide from payday loans provider Wizzcash.

Annual percentage rate (APR)
The annual percentage rate, or APR, is the interest charged on a payday loan. It shows the total cost of borrowing over a year, calculated on a daily basis.

Arrangement fee
Some lenders levy a fee for arranging a loan. This is to cover administration costs. Wizzcash does not charge any arrangement fees.

County Court Judgement (CCJ)
A County Court Judgement is issued by a court if you do not repay a loan. CCJs could affect your credit rating.

Credit rating
Your credit rating is a ‘score’ given to you based on your financial history. It’s designed to give lenders an idea of whether you’d be able to keep up repayments on a loan. Payday lenders will usually use your credit rating when they assess your payday loan application.

Direct lender
Wizzcash.com is a direct lender. Direct lenders do not work with brokers or other parties to process loan applications – they work directly with the applicant. Wizzcash.com does not offer a broker service to those who are approved and only funds loans to applicants who apply directly via the wizzcash.com website. Should your loan be approved, wizzcash.com will fund the loan directly and NOT seek out another lender to fund the loan.

Flexible payment
Wizzcash offers a flexible payment option for payday loans. It allows you to make 3 equal payments over a 3-month period.

Instalment loans
Very similar to payday loans but the repayment window is a little different. With an instalment loan, you pay back what you owe in staggered payments over a longer repayment window.

Late repayment
Some payday loan lenders will charge a fee if you are late making your repayment. Wizzcash currently charge a one-off fee of £15 when there is a late payment on a 3-month loan.

Lending criteria and credit checks
These are a set of requirements you’d need to meet before being approved for a payday loan. Wizzcash’s lending criteria is that you:

Are at least 18 years old.
Live in the UK.
Have a job and take home at least £750 a month.

We also run a number of other checks – read about the other types of payday loan checks we do.

Payday loans
Payday loans, or short term loans, are small loans (typically from £100 to £1,000) paid out as an advance on your next paycheck. They are usually paid back in a lump sum or over a short payment window (3 months to a year).

Generic advice is not a service regulated by the Financial Conduct Authority.