When you’re looking for fast cash to help you bridge the gap between bills that need to be paid, and income you’re yet to receive, a short term loan can provide the solution you need. There is a range of short term finance products available, including payday loans and instalment loans. Commonly, any type of short term loan gets lumped under the payday loan banner, but there are important differences between the products.
At Wizzcash, we provide instalment loans to meet the particular needs of our customers. The main difference between payday loans and instalment loans is the length of the repayment term.
Our customers, if approved, can repay their loans over a 3 month period. Payday loans are literally that, a product designed to provide the money you need until the next payday. As a result, they usually come with an inflexible 30-day repayment schedule, which can prove difficult for some borrowers to meet.
|Quick Quid style Payday Loans||Wizzcash Installment Loans|
|Duration||30 Days||3 Months|
|Amount||Up to £1000||£200 – £1000|
The flexibility of a 3 month period removes the pressure of having to repay the whole loan amount in one lump sum, which can be unaffordable and unreasonable. Those who fail to make the repayments are then subject to accumulative charges that result in a higher cost of borrowing. Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
More than just a quick quid
Instalment loans are proving to be the preferred middle ground for borrowers who need access to short-term finance, but want more flexibility in regard to their repayment terms. At Wizzcash, repayments are spread evenly over the term of the loan. This allows borrowers to budget their payments more effectively, and usually results in a lower APR.
The result is a product that’s more affordable than traditional payday lenders like Wonga and QuickQuid, but allows you to access smaller amounts than you would typically borrow from a bank.
Comparing the cost of instalment and payday loans
We know life doesn’t always go to plan, and sometimes you need access to short term finance to pay for the essentials you can’t love without. We have made our instalment loans process as quick and flexible as possible to ensure the money you need is in your account when you need it. However, our service isn’t just about giving you access to a quick quid.
Unlike some short term lenders, our instalment loan calculator helps to increase the transparency of the process by making it clear exactly how much your repayments will be. There are no hidden costs, so the price you see is the price you pay. We also run credit and affordability checks so all parties can be completely confident in your ability to repay the loan.
Our 3 month instalment loan has a representative 1265% APR, which is likely to be the lowest you’ll find in the short term, unsecured lending space. If you compare that to the traditional payday lenders like QuickQuid and Wonga, with representative ARPs of 1270% and 1509% respectively, you’ll find a Wizzcash Payday loan alternative is a cheaper source for the short term finance you need.
Applying for an instalment loan
We understand that the attraction of a payday loan is the speed with which money can be accessed to make essential emergency payments. However, applying for an instalment loan at Wizzcash is just as quick:
- Our instalment loan application process only takes a few minutes and it is completed entirely online.
- Before committing to the loan, you’ll see exactly how much you’re expected to pay, and when.
- There are no early repayment fees, so if you want to repay the loan early, you will only have to pay the interest for the period the loan was is in place.
Responsible instalment lending
At Wizzcash, we provide instalment loans, which are designed as a short term source of credit. We only lend to people we believe can comfortably afford to repay the loan on their chosen repayment date. Every application is assessed on an individual basis, and our service should not be used as a method of managing existing debts you already have.