Instalment loans provide our customers with the freedom and flexibility to borrow the money they need, without over-burdening them on their next payday as long as they are used correctly. Wizzcash provide customers short term loans that work on the same principle as instalment loans with pre-scheduled repayment terms, spread over three months.
What Are Instalment Loans?
An instalment loan is exactly what the name says it is. They are a loan that can be repaid over a period of time, rather than all in one lump sum. This means customers can spread the cost of their loan. Everything from a mortgage to a payday loan can be a type of instalment loan.
The kind of loans Wizzcash provide is a way for customers to get access to a financial boost when they are struggling to meet their unexpected urgent financial commitments before their next cheque comes in. Instalment loans also typically have a fixed interest rate.
Instalment Loans Vs. Revolving Credit
Revolving credit is a financial service, like a credit card. You are given a limit on how much you can spend, but there is no lump sum borrowed. There is a lot of flexibility and you can use this kind of credit on an as-and-when basis; it is called revolving credit because you can pay off however much you’ve used, and start over again, whereas with a loan you are tied into one amount and will have to source alternative credit or financing if you need access to money again. An instalment loan does mean that you will have a set payment plan at the time you agree to the loan. This could make budgeting easier and more dependable. In fact, many people use instalment loans to pay off revolving credit debt.
The kind of instalment loans we offer are not suitable for ongoing to escalating debt problems, but are instead a one off solution. This is because we offer high cost, short term credit. Our loans are available between £200 – £1000 and are designed to help customers through a genuine emergency, whereas revolving credit might be used more regularly, for smaller costs.
We do encourage our customers to borrow responsibly, but we are a compliant and ethical lender. This means that we will run affordability checks to ensure you are suitable for a payday instalment loan from us. If we are unable to fulfil your request, we may be able to connect you with another, trusted consumer credit company or financial service that is suitable for your situation.
When Are Instalment Loans A Good Idea?
Data shows that 47% of UK adults are not confident when making decisions about financial products and services, as reported in a 2018 survey. Reports from the year before , as lack of financial education and confidence about financial products means consumers are using credit cards when an instalment loan might be a better option. Depending on the individual circumstances, an instalment loan might be considered more manageable to pay back, but it should still not be taken out at whim.
We are not able to restrict how customers spend their loans. However, we work to a strict lending criteria that helps us to protect customers from borrowing money that they cannot afford to repay. We will assess who is eligible for an instalment loan based on several factors, but we never want to put our customers long-term financial future at risk because of their current situation. Our loans are high cost, short term credit. This kind of loan is defined by its high interest (over 1000%) and short repayment period.
How Does An Instalment Loan Work From Wizzcash?
With an instalment loan you can borrow anywhere between £200 and £1000 when you choose to borrow from Wizzcash. These small loans are designed to provide enough money to manage an emergency situation; the funds we lend to customers are enough money to cover the costs of car repairs, boiler breakdowns and some emergency medical expenses. Instalments at Wizzcash are structure into a 3-month loan.
Repayment periods are scheduled at the time of approval. We will also send our customers reminders to help make sure they have the necessary funds in their account ready for each payment.
To be eligible for an instalment loan you will need to meet the following criteria:
- Be 18 years old
- Be a legal UK resident
- Be able to show £750 earnings per month, after taxes
Repayments will be equally divided for the scheduled dates so there is no balloon payment or surprise at the end of the term. Late fees do apply, but we adhere to the FCA’s payday loan criteria to ensure we are lending ethically and responsibly.
We are dedicated to explaining things clearly and concisely; customers should be comfortable with their instalment loan agreement and fully understand the cost and the repayment terms before they borrow. You can find out more about how our payday loans work on our website. We also offer financial insights and tips for managing your outgoings on our blog.
Wizzcash.com is a payday loan direct lender. This means if you have a successful loan application with us we will communicate and lend directly to you. In the event that we are not able to help you, we are also a broker and we will link you to panel of consumer credit companies who might be able to offer you: loan products, with loan terms from 1 to 36 months, loan comparison websites to give you access to the comparison of loan products or credit reports companies to help you understand credit ratings and make informed credit decisions. We will never pass on your card details to any other organisation.