In the United Kingdom, people can loan a up to 5000 pounds and must repay it within a short span of time. This is called a Payday Loan. The reason why it is named as such is because these loans are supposed to be paid during the next payday.
Short term loans is one industry that grown by leaps and bounds in the UK. The number of people availing of a payday loan has since doubled from 2006. These loans usually involve around 270 pounds borrowed. The income bracket of people who avail of this loan make less that 25,000 pounds per year.
How to apply for a Payday Loan
- Application. It only takes three simple steps. The first thing you need to do is to choose the amount you want to borrow. Then choose the term period of the loan. Then you need to read the terms and policies of the loan.
- Wait for the decision. The application that you submitted will be subjected to a decision. This decision will be based on a background investigation of your financial capabilities, and some lenders will run a quick credit report.
- Deposit of the money loaned. Upon the approval of the application, the amount you applied for will be deposited straight to your bank account.
- Applicant must have a steady source of income on a monthly basis. This assures the lending institution that you are capable of paying back.
- The applicant’s place of residence must be in the city they have declared in their application.
- Applicants must at least 18 years of age.
- Must not be in any way about to file for bankruptcy.
- Applicants must not be enlisted with any of the military services.
- For online applicants, he or she must have a current or savings account.
- For online applicants, he or she must a phone available so that communication will be easy.
- For personal applicants, he or she must have a valid government issued identification card.
- For personal applicants, he or she must have an income statement and a checking account.
The good thing about applying for a Payday Loan UK is that the interest rates and the late payment charges are all capped.
Payday Loan interest rates normally reach 1000 percent. There is an interest rate maximum of 0.8 percent for each day of the term of the loan. However, if the applicant fails to pay for his loan on the due date of the Payday Loan, he will have to pay an additional 15 pounds on the whole loan for the late payment.
Add to all these, the total amount that the applicant will have to pay in the end will not exceed 100 percent of the original amount of the loan. This total amount is inclusive of all the charges and interest rates involved in the loan. This is to protect the applicant from paying more than twice than what he originally borrowed. This is according to the Financial Conduct Authority.
It is interesting to note that there is one company that is gaining so much popularity in the category of Payday Loans. That company is Payday Loans Now. The reason for this is that they offer easy application. They offer no hidden costs that would certainly make a dent into one’s wallet. They put premium on security and safety of their applicants and their information.
Payday Loans Now in Focus
One of the most dependable and reliable Payday Loan companies in the UK today is Payday Loans Now. The company is known for offering the fastest and most secure Payday Loan application service in the whole United Kingdom. The company aims for becoming the best payday loan company in the country by continuously improving its fast service and by far the competitive average percentage rates offered. Their set rules that are specifically made for short period loaning and this is something that the company wants to uphold every step of the way for every applicant that we handle. With this in mind, the company has the ability to help the applicants to not go overboard their loan capacity and paying ability. The company follows strict guidance regarding all of the rules and policies of the financial conduct authority.
Payday Loans Now assures all applicants that every process in their company website is all done with the guidance of the proper authorities if and when these are modified.
What they offer
There are a lot of benefits that the company offers. These are:
- Payday Loans Now offers a new way of loaning money. This manner of facilitating a loan is done over the internet.
- The company offers the Annual Percentage Rate available to anyone applying for a loan. The APR is the amount of interest that you will be paying for the whole period. This will beneficial to you if it is offered at a lower rate compared to others.
- The company tells you the correct interest rate up front. The company does not tell an applicant a certain rate and does not stick to it during the period of the loan.
- Payday Loans Now offers the applicant a chance to pay their debt before the due date expires.
- The company offers loans of a maximum of 5000 pounds
Benefits of Payday Loans Now
- They make accurate and correct decisions all throughout the loan application. All an applicant needs to do is to fill out the application form and submit it and the company will help him get a decision as soon as possible.
- They have a no frills application form. It is easy to fill out their application form since it offers straightforward information which makes applying hassle free.
How the Loan Process Works
The first thing that an applicant has to do is to share his information on the hassle free application form found on the company website. This will help the company to see what kind of loan is suitable for the applicant and if the information that was provided may be approved or not. If it is not approvable, the company lets the applicant know right away. Upon application, the applicant must be of legal age. In the United Kingdom, the legal loaning age is 18 years old.
The applicant must choose how much he wants to borrow. It is important that the loan amount be specified right away and also the length of the loan.
Identification validation. This can be done by the applicant through Smartphone or via email.
After the validation of identification, the loan now goes through for approval. If the loan is approved, the company will make referrals to a lending institution for the loan process finalization.
What About Wonga?
People who are in need of short term loans approach Wonga for a number of reasons. This makes paying for an unexpected bill more bearable since applicants can borrow money quickly.
The main advantage that Wonga has over its competitors is that the applicants can pay them back whenever they can or want. There is graph indicator on their website that allows applicants to modify this to the timeline they are comfortable with. This will become their due date. There is a separate graph that indicates the amount of the loan. Upon moving these, the applicant will get a glimpse of how much the total cost of the loan will be.
Remember that a short term loan is only good for making ends meet and not to pay for anything else.
What They Offer
Wonga’s products are all designed to help the applicant with their financial situations. These are designed to help them solve their daily financial troubles. These will benefit people who cannot get regular loans.
- Wonga Loans. This is their main offering. Through this product, Wonga has become so popular and has been the top name when it comes to loaning. The company is responsible for the rise of Payday Loans in the United Kingdom by offering modified short term loans by allowing the applicant to declare how much they need and what is the comfortable time frame for them to pay up.
- With their manner of facilitating a short-term loan, they actually offer the applicant t some flexibility and clarity. The decisions that the applicants have to go through are all done on the company website. The approvals and disapprovals are all based on background checks done on references from credit agencies. All of these checks are necessary to protect the lenders.
- BillPay. This is Wonga’s venture to e-commerce that is based in Berlin, Germany.
Features and Benefits
- Flexibility. An applicant can freely choose the amount of the loan he want s to borrow and the time span he thinks he can comfortably pay it all. An applicant is allowed to pay for a part or his full loan at an earlier time if and when he gets his resources. This early payment will save the applicant from interest rates posted on the remaining time span. Early payment is not charged.
- All transactions are done on the internet. Applications can be done through their website at anytime and anyday an applicant wishes to. With an online operation, paying for their loan becomes hassle free as it is automatically debited to the applicants entered debit card details.
- Transparency. All of the figures will be laid out in front of the applicants eyes. These figures include the total amount of the loan and the total amount to be paid back.
How it Works:
- It is simple. The first thing an applicant must do is go to their website and click the ‘Short Term Loan’ link.
- Slide the “How much cash do you want?” graph to indicate the amount.
- Slide the “How long do you want it for?” graph to indicate the time frame of the loan.
- Check the amounts shown plus the interest rate on the lower left corner of the page. If it is doable for the applicant, click ‘Apply Now’.
- Approval may come within 5 minutes.
Choosing Between the Two
Benefits of Payday Loans Now
- It is easy to qualify. This is so because the only thing an applicant must have its a regular source of income.
- It has a secure way of getting personal information. These two companies offer secure ways of gaining the applicant’s personal information.
- Quick. From filing an application to receiving the money takes only about 5 to 10 minutes.
- Flexible payback. Although there a due date, an applicant can pay for the whole loan at earlier date.
- It offers protection from further debt. The good thing is that the applicant’s income is the basis of the amount of the loan. This provides an easier way to pay back the loan when it matures preventing the loan from gaining more interest rates that the applicant may find difficulty in paying.
- Freedom. The applicant is free to choose on how he will use the money once he gets it. The reason for this is that it is not limited to certain purposes.
- Convenience. Lending institutions often operate on flexible operating hours. This means that the application may be processed and approved at any given time and date. So if an emergency comes along and an applicant needed money, they can simply apply for a Payday Loan.
- Meant for urgency. The money loaned can be spent for urgent matters like bills to be paid, emergency hospital bills and to fund checks to be paid to.
What People Say
There have been a lot of feedback from customers of these two companies. When it comes to reputation, People say Wonga has been in the scene for years now. In years past, the company has not faced any major debacle. Payday Loans Now, on the other hand, has been in the business for a shorter period of time. However, being backed up by their professionalism is what makes this company a well loved one.
When it comes to online presence, people say that these two are kind of worlds apart. Wonga has a better presence in this. Although Payday Loans Now also has a strong presence on the net, it is still on its way up. With just a little adjustment, they are on their way to gaining more presence.
Bad press. There has been a lot of not so good word about Wonga in the past few years. The reason being is that people think the company is taking advantage of a person’s poor financial situations to gain business. The of course there is that scandal in 2014 where the company approved over 300,000 applicants who they knew could not pay. On the other hand, Payday Loans Now has been giving people what they need, more cash and less interest rates.
On a point per point comparison, these two companies have a lot in common. Most of their features are not far from the other’s features. However, it is obvious that Payday Loans Now is the better choice between them. The reason being is that because of the scandal they brought in 2014, Wonga is now in debt in millions of pounds. On the other hand, Payday Loans Now has always been a sound company when it comes to finances.
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Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk