What is a Short-Term Loan?
A short-term loan is a loan whereby the entire balance owed is repaid in relatively few instalments or over a short space of time. If you opt for a loan from us rather than a loan from Quick Quid, repayments are made over the course of three months: for most people, this means they will pay back the balance of the loan, plus the interest, in three monthly instalments.
What’s the Difference Between a Payday Loan and a Short-Term Loan?
Typically, people who take out a payday loan have to pay it back within thirty days: it is intended to tide people over in an emergency until their next payday. Payday loans must usually be paid back in full, including interest, in a single payment. The significant size of the repayment, as well as the tight time-scale, means that borrowers may struggle to make this repayment in full. In contrast, a short-term loan allows borrowers to repay the money they owe over a few weeks or months. With Wizzcash, borrowers are able to take out a short-term loan that’s repayable over three months. The longer lending period can make borrowing more manageable and affordable.
How Much Interest Will I Have to pay?
Quick Quid loans have an APR of 1294.1%. Our loans have an APR of 1265% (true on 01/01/19). The APR (Annual Percentage Rate) is the percentage of the loan amount that you would pay as interest if you borrowed the money for a year. This figure can be difficult to interpret when it comes to short-term borrowing, as obviously the total amount of interest you pay on money borrowed for three months is much less than if you borrowed the money for a year. Because we want our customers to be completely clear on how much interest they will be paying on the money they borrow, we have a loan instalment calculator on our site. This allows you to see exactly how much interest you will have to pay on the amount you wish to borrow, as well as how that breaks down into monthly instalment payments.
How Much can I Borrow?
The amount you can borrow from us varies depending on your individual circumstances. The maximum amount that you can borrow using our three-month instalment loan product is £1000 and the minimum amount is £200. Remember that in addition to repaying the amount borrowed, you will also need to pay interest on top.
How do I Apply for my Wizzcash loan?
In the first instance, you need to complete the short online application form. This application includes information on you and your financial circumstances. This can be completed from your phone, laptop, desktop or any other internet enabled device. Your application is processed automatically. Should you be successful in securing your loan, you will be sent the relevant paperwork which gives information on the details of your loan. If you are happy with the lending terms, simply sign the paperwork electronically and return it to us. We will then transfer your loan to your bank account.
Who can Apply for Loans?
As a responsible lender, the loan products that we offer are only available to people who we are confident will be able to repay their loan in the approved time-scales. Late or missed payments will result in additional charges being applied. To keep the chances of this happening as low as possible, we have a number of criteria which people applying for loans from us must meet before their application for a payday loan is considered.
The minimum requirements to apply for an instalment loan are that individuals must:
– Be over the age of 18
– Be a UK resident
– Be in some form of paid employment with a minimum monthly income of £750
In addition, we carry out a number of other checks to ensure that we lend responsibly.
Do you Accept Applications from People with bad Credit?
We assess each application individually and will make a decision based on a range of different factors. Obviously, if you have a poor track record when it comes to repaying borrowed money, or are currently struggling with longer-term debt issues, it would be irresponsible to lend to you. In these circumstances, as a broker, we may be able to assist you in finding out more about your credit report or in securing a short-term loan via another lender.
What Checks do you do on my Application?
When someone applies for a short-term loan from us, we complete a number of checks that ae designed to establish your suitability for a loan, these ensure that you are able to pay back the loan. The checks that we complete are as follows:
– Identity checks to confirm you are who you say you are
– Affordability checks to confirm that you are likely to be able to repay the amount you borrow
We will perform a credit check should you apply for a loan with us.
What Does FCA Authorised Mean?
As a Financial Conduct Authority (FCA) authorised lender, we are required to operate to strict standards when dealing with our customers. Being FCA authorised means that when you deal with us, we are required to:
– Give you clear information about your loan interest rates, repayment amounts, APR and any other costs and charges we apply.
– Take reasonable measures to minimise the risk of lending to people who can’t afford to pay us back.
– Cap the penalties for late or missed repayments.
– Act in an honest manner and with integrity.
What can I do if my Loan Application is Refused?
If your application is refused, it may be that one of the other lenders we work with (we are a broker as well as a direct lender) will lend to you. Alternatively, you may wish to consider:
– A bank loan
– Using a credit card
– Borrowing from friends or relatives
– Seeking debt management advice from organisations such as StepChange, Citizens Advice or the Money Advice Service.