When comparing payday loans, the APR can be a very confusing measure of interest. With some payday lenders charging up to 6,000% APR, it is hard to understand how much a payday loan really costs.

The APR for payday loans is high because APR is calculated at an annual interest rate and is therefore taking a loan which lasts only a few weeks and multiplying it as though it was a year – leading to APR’s that run in the thousands.

What is APR and why is it used for payday loans?

APR is the official yardstick for comparing financial products so all the rates of all loans and mortgages must be presented in the form of APR. This is particularly useful for financial products that are long term because APR is based on annual measures of interest. Therefore, APR is a great measure for comparing products like mortgages and 12 month loans.

The APR is used for payday loans because it is the most recognisable way to compare different loan products. The Financial Conduct Authority payday loan guidance encourage payday lenders to clearly state the Representative APR clearly on all advertising communications – helping borrowers compare loans and therefore make an informed choice about who they wish to borrow with. The Representative APR refers to the rate of interest that will be granted to at least 51% of successful customers. The Representative APR is likely to vary based on the duration on the loan.

How can you find the real cost of a payday loan?

Whilst the APR does provide some guidance when comparing the real cost of a payday loan, there are other measures to consider. Notably, the cost per daily interest that lenders charge is a very clear indicator of the cost of a payday loan. In addition, borrowers can compare the cost per £100 borrowed per month as another way of understanding how much a loan is.

Cost of a loan from wizzcash.com

Wizzcash.com offers instalment loans which are repaid over 3 months in equal monthly instalments. We are a cheaper and viable alternative to payday loans. A 3 month loan from wizzcash.com has a representative APR of 1265% which is significantly cheaper than your typical payday loan. We charge a daily interest rate of [daily-interest] and charge £24.33 per £100 borrowed per month.


There are no broker fees or admin fees for applying, so if your application is not successful, you will not be charged anything. One of the most flexible things about an instalment loan from wizzcash.com is the ability to repay early at any point with no early repayment fee. That means that if you wish to clear your debts early, you can do so, and you will only be charged the daily interest making your loan cheaper overall.

How to apply

At wizzcash.com, our entire application is online and we do not take applications over the phone or by post. You can fill in our two-page application using a desktop, laptop, mobile or tablet device – you need is the internet! We ask you to fill in a few simple details regarding your residence, employment and bank account details. We require the latter so we can run a credit check on your account and so we know where to transfer your funds. If you have been provisionally accepted, our underwriting team will get in touch to confirm a few details with you over the phone and they may request a copy of your pay-slip or bank statement to confirm employment. If we have fully accepted your application, we can transfer funds within 1 hour.

We will always run a series of credit and affordability checks for every applicant before funding a loan. To be eligible to apply, customers must be over 18 years of age, living in the UK and in current employment earning over £750 per month.

To apply, click on apply now

Warning: Late repayment can cause you serious money problems. For help, go to www.moneyadviceservice.org.uk