Small loans could provide you with the financial boost you need to provide relief or to help you attend to urgent bills or breakdowns when you don’t have the cash readily available. Here at Wizzcash, we understand that unexpected expenses can arise, no matter how well we try to budget. A small loan from Wizzcash could help you fix a burst pipe, pay for a dental emergency, keep your car on the road or keep on top of a surprise utility bill.
What Is A Small Loan?
Small loans are actually a short term loan and typically range from £100 and up. Here at Wizzcash you can get small loans from £300 – £1000. These are designed to give you the small, flexible cash boost customers need to get on with everyday life. Small loans from Wizzcash are repaid over 3 months, no matter how much you borrow from us.
Is Small Borrowing Dangerous?
A payday loan or short term loans (which is what a small loan really is) are known as HCSTC (high cost short term credit). This is because these types of loans typically have a higher APR than a standard personal loan. Standard loans would start at a much higher minimum loan amount and have longer repayment periods, which could make them less convenient if all you need is one financial boost.
Research shows that UK consumers may be entering a debt issue because of our habitual, small-value borrowing. Economists and experts in the industry highlight that this kind of small borrowing, in whatever format, whether that’s small loans, making payments on credit cards or buy now pay later schemes, could be replicating the kind of economic conditions that incited the financial crisis of the late 2000s.
Interestingly, the same report poses that the FCA and PRA should investigate credit card lending more closely, suggesting it could be more threatening than payday loans, because there is not as much consumer awareness or conversation around the risks of this kind of ad-hoc borrowing.
Ultimately, this data goes to show that all kinds of short-term borrowing is likely to incur high fees. We talk on our blog about how to practice better budgeting and how you could work towards your financial goals or bettering your financial security. Reading these resources and implementing better financial behaviours could prevent consumers from needing small loans or reoccurring lines of credit in the future as there are risks associated with all kinds of borrowing.
Here at Wizzcash, we are an FCA compliant and transparent lender. We try to educate our customers about our loans before they commit to them, you can even use our visual loan calculator to see exactly how much a loan will cost in total.
When Would You Use A Small Loan?
Small loans are typically just a couple of hundred pounds. We understand that when you are in a crisis, this is a lot of money, but you might be able to ask your friends or family for a little help and work out a flexible repayment scheme with them. This will probably also save you the cost of taking out the loan. If you are not comfortable with borrowing from friends or family, you might be better suited to talking to your bank about an overdraft, that may be low-interest. If these options are not available to you, credit unions are increasingly offering ‘short term Currently, credit unions that are able to facilitate short term, low cost credit requests are based in London. Interestingly, this is where the highest concentration of loans are taken out, perhaps because this is the geographical area in the UK with the highest cost of living.
In turn, if your options are limited, we could still help customers out of a tight spot, by helping to facilitate access to emergency loans when they need it most. Common things a small loan might be used for include:
- Paying a surprise bill
- Urgent household repairs
- Medical and dental bills
- Surprise travel bills or costs
All customers will be subject to our affordability and credit checks. If we are unable to fulfil your loan request, as a broker, we may be able to connect you with a panel of trusted alternative lenders or put you in touch with an appropriate service that could advise you on your finances.
Can I Get A Small Loan With Bad Credit?
Not everyone that needs access to quick cash or a little extra help to see them through to their next cheque has a perfect credit history. Here at Wizzcash, we do not reject an application for small loans simply based on bad credit. Of course, all applicants will be evaluated to ensure they are suitable for our loans and we do work to a strict set of criteria. This is because we do not want to make your financial situation worse and will only be able to provide a loan to those who can realistically afford the repayments. For more information about applying for a small loan with bad credit, keep reading or find out how it works on our website.
How Do I Apply For A Small Loan?
Applying for a small loan is simple and easy with our online application form, if you decide that this is best credit option for you. This means you can apply at any time of day. You can select how much money you want to borrow and look at how much that is going to cost you by looking at our loan calculator. Customers can also tailor how long they want the repayments to be.
When you apply for a small loan from Wizzcash, you will need to provide us with some information about yourself. This is all completely standard.
Small loans are only available to those who are:
- Over the age of 18
- A UK resident
- Are able to show an income of £750 per month
Wizzcash Loans & What You Need To Know
When you apply for a loan from Wizzcash, we always strive to ensure our customers are completely clear on how much the repayments are going to costs. Even though our repayment terms are flexible because we do not charge an early repayment fee, customers that fail to meet scheduled payment dates could have their credit score impacted, no matter how small the loan amount. Repayments will be taken on the scheduled dates directly from your bank account. This means it’s so important for our customers to be clear on when these days are.
As we discussed above, over using credit cards could affect you adversely, perhaps because there is an attitude of minimum or optional payments, which could be encouraging consumers to top up on their debts, spending more than they can keep on top of. In turn, repayments for small loans are much more rigid, which could provide the structure some borrowers need. If you are having financial troubles and know you are not going to be able to meet your repayments with a Wizzcash loan, we can work with you to come to an agreement or to put a payment plan in place, you will just need to get in touch with us. Customers experiencing financial difficulty and are unable to make repayments as scheduled, should contact us as soon as possible, ideally before going into default.
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.