What are payday loans?
Payday loans are small, unsecured short-term loans. They’re known as payday loans because people tend to take them out to support them financially until they next get paid. Payday loans are usually pretty small, ranging from about £50 to £1000.
Payday loans are designed to be repaid quickly – typically from between a day to a few months. If you’re looking to cover an emergency expense and just need some financial help to see you through to payday, payday loans could be the solution. Wizzcash’s payday loans are designed to help you handle an unexpected financial emergency, such as unexpected bills, house maintenance or other issues that your monthly pay check may not be able to handle. We understand the urgency of these matters and will always try and get your payday loan to you quickly, usually within a day.
How are payday loans different from other loans?
The main difference between payday loans and other loan types such as a personal loan, mortgage, or consolidation loan is that they are low value and have a short repayment period. For example, you wouldn’t borrow more than £1000 with a payday loan (ideally) and you’d pay it back within a few weeks. However some lenders, such as Wizzcash, offer longer, flexible payment options for payday loans too.
Payday loans also have a higher annual percentage rate, or APR, when compared to longer-term loan options.
What Is An Unsecured Loan?
A payday loan can also be called an unsecured loan. This means that if you take out a payday loan, you don’t pledge an asset, like your car or your home, as collateral. This means that, if you fail to make repayments for your payday loan, you won’t have to give up anything in return, like you would with a secured loan.
How Should I Use A Payday Loan?
Payday loans are supposed to be used in the event of a financial emergency that you may not be able to pay for with what’s left of your monthly pay. Payday loans online should be used as a quick remedy in the short term, not as a long-term solution. Essentially, a payday loan is finance which is made available by an authorised direct lender, such as Wizzcash. Use them, and pay them back as soon as you can.
How does Wizzcash.com compare to other lenders?
Below, you can see our APR by comparison to other direct lenders offering similar payday loan options in the market:
As you can see from the table below, we have one of the lowest APR of all direct lenders:
|LoanPig||1261% APR||Direct Lender|
|Wizzcash||1265% APR||Direct Lender|
|QuickQuid||1294.9% APR||Direct Lender|
|PiggyBank||1270% APR||Direct Lender|
|Sunny Loans||1291% APR||Direct Lender|
|Wonga||1286% APR||Direct Lender|
Research undertaken 05/04/18.
Does Wizzcash Offer Instant Payday Loans?
An instant payday loan is a term that refers to the speed of the approval for a loan and how long it takes for the money to be transferred into a person’s bank account. All payday loans within the UK are classified as instant loans and with Wizzcash, we offer same day payout in most cases with no extra fee. An instant payday loan can also be referred to as a ‘quick loan’ or a ‘same day loan’. Here at Wizzcash, we offer quick loans as standard.
Does Wizzcash Offer Instalment Loans?
Instalments loans are a flexible loan option for those who cannot necessarily pay back what is owed within a few weeks. Repayments are spread across a number of months in order to make them more manageable for our customers, to ensure that you can safely pay back your loan on time. Here at Wizzcash we provide our customers with 3 month flexi loans, which allow our customers to borrow up to £1,000 and make 3 equal monthly repayments over 3 months.
What Is The Difference Between Payday Loans & Instalment Loans?
There are a number of terms that you will come across when it comes to taking out a payday loan including instalment loans, short term loans, instant loans and many more. In order to prevent any confusion when it comes to taking out payday loans, we’ve put together a quick guide to explain the differences between payday loans and instalment loans. In short however, payday loans are often seen as a cash advance and are designed to bridge the gap between running low on cash and getting paid. Instalment loans however, are usually larger in value and spread out over a number of months.
Can I Get A Payday Loan With Bad Credit?
The good news is you may still be able to get an online loan with bad credit in the UK, with some payday loan companies such as Wizzcash providing a responsible lending service that evaluates affordability also, not just your credit score. It is important to remember your credit rating will have an impact on your ability to get loans from other financial institutions including banks and payday loans.
Under FCA regulation, you must undergo a credit assessment when you borrow money from an authorised lender. Thus, you may want to avoid lenders that offer you a payday loan without a credit check.
- What Is A Payday Loans Direct Lender?
- Payday Loans vs. Bank Overdrafts
- What Does APR for Payday Loans Mean?
- How Do I Know Which Loan Works Best For Me?
- How Do Online Payday Loans Work?
- When Do I Use Payday Loans?
- What Happens If I Need More Time To Pay Off My Payday Loan?
- Should I Read Reviews Before Taking Out A Payday Loan?
- Why has Wizzcash.com been voted one of the best direct lenders?
What Is A Payday Loans Direct Lender?
A payday loans direct lender deals directly with the person who successful takes out a payday loan with us. Here at Wizzcash, we are a direct lender and a broker. This means that if you are approved, we will lend directly to you and in the event that we are not able to, we will provide you access to a panel who may be able to offer you similar or alternative financial products.
Payday Loans vs. Bank Overdrafts
Are payday loans cheaper than overdrafts? In some cases, yes they are. Research by Which? In June 2016, the consumer group, found borrowing cash on an unarranged overdraft can be up to 12.5 times more expensive than if you were to take out a payday loan.
If you borrow £100 from a payday lender for 28 days, you would have a maximum interest charge of £22.40 as a result of a cap brought in by the Financial Conduct Authority. If you went overdrawn without agreement from your bank, however, you could pay as much as £84, based on Barclays or Santander bank account overdraft fees, £3 per day on 11/04/18, after going over the buffer limit. So taking out a payday loan could be a lot cheaper than an unarranged overdraft.
What Does APR for Payday Loans Mean?
If you’re thinking of getting a payday loan, you’ll undoubtedly come across the term APR. Find out what these three little letters mean in our in-depth guide to annual percentage rates.
How Do I Know Which Loan Works Best For Me?
Working out what type of loan is right for you can be difficult, but with the help of a jargon buster and someone who knows what they’re talking about, you can find the process isn’t as difficult as it may initially seem. Whether you’re looking at payday loans, personal loans, secured loans or debt consolidation loans, we can help. It is important to know exactly why you are taking out the loan before you take one out, as different loans have different purposes. Read more here.
How Do Online Payday Loans Work?
The application process for payday loans will vary depending on the lender you choose. This is how the payday loan application process works here at Wizzcash – and it only takes about 5 minutes.
- Tell us some basic details about where you live, your job and your expenses.
- Enter your bank details so we can run a credit check.
- We’ll run some other checks and you’ll receive an instant decision.
- If approved, the cash will be in your account within minutes.
When Do I Use Payday Loans?
Payday loans online are available for a number of reasons. Firstly, payday loans are there to help borrowers pay for emergency or short-term expenses and should never be relied on in the long-term. Common reasons for taking out a payday loan include boiler, car and home repairs, vet bills and dental work. Generally speaking, payday loans can be useful for any emergency situation when you need some money straightway and you know that you can afford to pay it back when your next pay check comes through. As a general rule, only use payday loans for emergencies and necessities.
What Happens If I Need More Time To Pay Off My Payday Loan?
We understand that unexpected circumstances can cause you to not be able to repay your loan. While missing repayments can have serious consequences and cause you money problems, Wizzcash has a friendly team that are always ready to help you. If you know that you’re going to miss your repayment, then let us know and we will do everything we can to work with you in order to make an affordable plan.
Should I Read Reviews Before Taking Out A Payday Loan?
Reading reviews for a payday loan lender is a great way to build your own picture of the company, and to determine whether they are trustworthy. It will also help you to determine whether there are any problems that you may encounter if you choose to go ahead with them.
Why has Wizzcash.com been voted one of the best direct lenders?
Wizzcash has been voted one of the best Payday Loan direct lenders by independent review company www.readies.co.uk. Our customers have rated us over 4.5 stars for Customer Service, Ease of Use, and Value for Money.
As of April 2018, Wizzcash is rated 4.6/5 stars and is a Readies A Rated Lender.
- What Checks Are Carried Out For Payday Loan Applications?
- What Is The Lending Criteria For Payday Loans?
- How Can I Protect My Privacy When Applying For A Payday Loan Online?
- How Many People Are Using Payday Loans In The UK?
- Do Payday Loans Affect Your Credit Score?
- Do Payday Loans Help Your Credit Score?
- Where Did Payday Loans Come From?
- What Is The Difference Between A Broker & A Payday Lender
What Checks Are Carried Out For Payday Loan Applications?
At Wizzcash, we run credit checks to assess your suitability for taking out payday loans with us.
A credit check presents a score which gives an indication of how well you have repaid various forms of credit in the past including mobile phones, credit cards and loans. Not keeping up with repayments will cause your credit score to drop. Paying back on time will maintain your credit score and will even improve it.
What Is The Lending Criteria For Payday Loans?
To take out a payday loan with Wizzcash, you will need to be:
- At least 18 years of age.
- A UK resident.
- In current employment, taking home at least £750 a month.
How Can I Protect My Privacy When Applying For A Payday Loan Online?
You can be sure that when you apply for payday loans online with Wizzcash, that we have some of the very best encryption technology to identify, prevent and eradicate any scam attempts. Your online security is our ultimate priority.
If you are asked to pay for anything in order to get a loan, then it could be a scam. If you would like a payday loan with Wizzcash, then please apply through our secure website.
How Many People Are Using Payday Loans In The UK?
In 2012, according to a study by ACCA, over twelve million short term payday loans were arranged in the UK. The market regulators are putting in restrictions in order to help consumers, which could be one of the factors in the steady decline in people using payday loans since 2014.
Do Payday Loans Affect Your Credit Score?
If you take out any kind of credit, whether it’s a payday loan, credit card or something else, it will have an impact on your credit score – a score financial providers take into account when they decide whether to lend money to you – in some way.
It’s true that payday loans have a higher APR when compared to other loan types such as credit cards. If you fall behind on your repayments, this could affect your credit score, just like any type of credit.
Do Payday Loans Help Your Credit Score?
Taking out a payday loan could, in some cases, help your credit score. While some lenders might view taking out a loan as a sign you’re struggling, paying a payday loan back on time could show a lender that you are a good repayer.
Failing to pay it back would, however, negatively affect your credit score.
Where Did Payday Loans Come From?
Payday loans originated in Cleveland, Tennessee in 1993, where William Alan Jones redeveloped the idea of offering short term loans in return for a post-dated cheque, which was written for the combined value of the loan and fees on top of this. Based on this model, Cheque Into Cash was founded, and Jones convinced the state to change the laws that prohibited charging overly high interest rates. In 1999, Jones began the payday loan industry which quickly became a worldwide phenomenon.
What Is The Difference Between A Broker & A Payday Lender
A broker acts as a middle man, offering you a loan through various lenders. Brokers will have several loan providers who they will put in contact with you and it is one of these providers (not the broker) who will loan you the money. Whereas a lender will provide the loan to you. Wizzcash is both a responsible payday lender and a broker. We only act as broker when we are not able to directly help you with a loan.